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Shein has recently joined the retail company Sparc Group to share each other's expertise to fulfill US fashion demands. Under the Sparc Group, Forever 21 will synergize with the Singapore-based brand to capture young audiences for fast fashion.
On Thursday, August 24, the retailers announced the deal where both brands will serve young shoppers with affordable clothes. Under this deal, the Singapore-based brand will acquire about a third of Forever 21's operator, Sparc Group. Sparc will also take a minority stake in Shein.
In the last few years, the Singapore-based brand has shown immense growth in its business, which superseded other soaring fashion brands. This deal will develop the growth of Forever 21 with the expertise of the Singaporean fast fashion brand in the e-commerce market.
Shein X Forever 21 deal will bring more fast fashion and beauty products to young consumers
As per a Bloomberg second measure report, Shein contributes at least 40% of sales in the fast fashion industry in the USA. A press release from the Sparc Group appreciated that the brand's engaging and fast service-providing strategy has won 13 million people's hearts. The retail company wanted to enhance its buying experience with Sparc's brand expertise.
"We are excited about the partnership as it reflects our shared vision of providing customers with unparalleled access to fashion at affordable prices. By working together, we will provide even more innovative and trendsetting products to fashion enthusiasts around the world," the CEO of Sparc Group, Mark Miller, said.
On the other hand, the Singaporean brand's executive chairman, Donald Tang, said:
"SHEIN is thrilled to have SPARC Group as a partner and minority shareholder, and we look forward to finding new ways to delight our customers through the potential of this partnership. The powerful combination of Simon's leadership in physical retail, Authentic's brand development expertise, and SHEIN's on-demand model will help us drive scalable growth and together make fashion more accessible to all."
Regarding this collaboration, a global retail and textile expert, Sheng Lu, from the University of Delaware, shared his point of view with CBC News:
"In terms of price point, definitely, they're very, very close. Shein could be one of the largest competitors for Forever 21."
The expert also feels that working together instead of competing can bring the best result for both brands. Since 2019, the USA-based brand Forever 21 has been struggling with bankruptcy, and this collaboration might work for good.
The Singapore-based fast fashion brand has been grappling with labor exploitation allegations for some time now. A 2022 Bloomberg report tied the brand to Xinjiang, where China is accused of exploiting its Uyghur Muslims. The brand was also accused of environmental exploitation to satisfy customers' demands.
It can be predicted that this deal between Forever 21 and the Singaporean brand will bring more affordable clothes to the USA consumers. However, being a fast fashion brand, it should not be overlooked in the sustainable fashion violation.
