Forever 21 & Shein Team Up: Online Meets Offline
Forever 21 and Shein, two prominent names in the fashion industry, have joined forces. Shein will now sell Forever 21 products online and set up dedicated sections in Forever 21 stores across the US. This move comes as Shein aims to enter the offline retail market and compete with rivals like Temu.
Forever 21, founded in 1994 by Do Won Chang and Jin Sook Chang, faced challenges in talent acquisition and managing 'outsiders' as it expanded. However, under the leadership of Daniel Kulle and Winnie Park, the brand's sales reached USD 2 billion by 2021. In 2019, Forever 21 filed for bankruptcy but was acquired by Sparc Group, a joint venture between Authentic Brands Group and Simon Property Group, in 2020 for USD 81 million.
Shein, a leading online fast-fashion retailer, has been making waves in the industry. It previously bid for fashion group Arcadia but lost out to ASOS. Now, Shein has secured a stake in Sparc Group, which manages brands including Forever 21, Nautica, and Brooks Brothers. This acquisition gives Shein around a third of Sparc Group's shares. Despite a lackluster attempt to introduce third-party merchants in Brazil, Shein is determined to grow and compete with rivals like Temu, which expanded aggressively to over 100 million active users in just six months.
The partnership between Forever 21 and Shein is set to bring changes to the fashion retail landscape. While Forever 21's pricing strategy differs from Shein's, with some apparel types priced double, the collaboration could attract a wider range of customers. With Shein's online prowess and Forever 21's offline presence, the two brands aim to strengthen their positions in the market.
