SHEIN and Forever 21 team up to promote fast fashion

In a recent agreement, SHEIN will acquire a one-third stake in Sparc Group, the parent company of Forever 21. At the same time, Sparc Group will become a minority shareholder of SHEIN.

SHEIN is looking to expand its presence in the United States and strengthen its physical store presence. The partnership will allow it to evaluate the sale and return of its inventory in Forever 21 stores across the country. Moreover, Forever 21 will offer select products on shein.com, accessing a broader international consumer base beyond its more than 540 outlets worldwide.

As for the products themselves, while the changes will not be immediate, the deal could have an impact. As Sparc Group will continue to handle production for Forever 21 and supply SHEIN for online distribution, this could potentially contribute to further price reductions.

Despite the controversies and legal challenges, SHEIN claims to have reached 150 million online users and reportedly generated $23 billion in revenue by 2022. Meanwhile, Forever 21’s revenue in the same year reached $4 billion, two years after it was acquired by Simon Property Groups, Brookfield Property Partners and Authentic Brands Group following a bankruptcy. Sparc Group, a joint venture of Simon and Authentic Brands Group, owns several brands, including Forever 21.

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