Shein is strengthening ties with a former US competitor in order to clean up its image ahead of a prospective IPO in 2024.
- IMPORTANT NOTES
- Shein and Forever 21 plan to launch a co-branded clothing collection, which will mostly be offered on Shein’s website.
- Earlier this year, the firms formed a joint venture in which Shein acquired a majority position in Forever 21′s operator Sparc Group.
- The collaboration serves greater purposes for both organizations that go beyond increased revenue.
After the two businesses started a collaborative venture earlier this year, the e-commerce giant is set to reveal a co-branded clothing line with Forever 21, the companies announced on Friday. Shein will develop, manufacture, and distribute a line of co-branded Forever 21 garments and accessories, which will largely be offered on Shein’s website. According to the brands, the line will comprise new sportswear, activewear, and swimwear for both men and women.
The announcement comes approximately two months after Shein and Forever 21′s operator Sparc Group agreed to take a stake in each other’s enterprises.It bought around one-third of Sparc Group, a joint venture comprised of brand management business Authentic Brands Group and mall owner Simon Property Group, while Sparc acquired a minority position in It.
The collaboration has allowed it to offer its diverse low-cost items within Forever 21′s retail locations, allowing the brand to meet a bigger client base and demonstrate its wares in person. Forever 21, most known for its mall locations, will now be able to use it’s digital ability and vast client base to strengthen its e-commerce capabilities and grow its online reach.
While the collaboration is intended to increase sales for both firms, it also serves bigger aims.Shein, which is said to be considering a U.S. IPO, has been working to clean up its image and combat allegations that it employs forced labor in its supply chain, violates U.S. tariff legislation, and steals ideas from independent artists. It is under increasing criticism from lawmakers and authorities, who are particularly concerned about it’s ties to China, the country where it was formed and where the majority of its supply chain is headquartered.
The corporation has emphasized the many steps it has made to address those challenges. It now has a powerful friend on its side thanks to its alliance with Sparc, which might assist legitimize the company in the eyes of US regulators and seek to ease lawmakers’ concerns.
Forever 21, the relationship with It allows the business to reclaim its relevance from the mid-2010s and win over younger customers who prefer to buy online rather than in malls.”It’s innovative approach to engaging with consumers enables them to deliver trends quickly.” “In an evolving retail landscape where digital interaction has become the cornerstone of e-commerce, It has led the way in redefining how brands connect with consumers,” stated Jamie Salter, founder and CEO of Authentic, in a news release. “We are excited to partner with It, as this collaboration perfectly fits into our distribution strategy for the brand’s new key markets.”
Frequently asked questions
What is the Shein brand?
It is a Singapore-based online fast-fashion retailer. Shein, founded in Nanjing, China, as ZZKKO.
When was Shein founded?
Shein, founded in Nanjing, China, as ZZKKO in October 2008.
Who is the founder of Shein?
Chris Xu is the founder of it.
Click here to learn about Forever 21.
