Shein and Forever 21 have merged their fast-fashion businesses.
The shops announced a merger on Thursday that will combine two brands with a strong following among young buyers and a reputation for fashionable clothing and accessories at inexpensive prices.
Shein will buy around one-third of Forever 21′s operator, Sparc Group, as part of the joint venture. Sparc will also acquire a share in Shein.
Even while Shein and Forever 21 cater to comparable clients, they do it in distinct ways. Shein offers its products for sale online. Forever 21 is primarily recognized in the US for its mall locations.
Shein and Forever 21 will have additional opportunities to reach clients thanks to their collaboration. Shein will sell some of the gowns, shoes, and other goods from Forever 21. According to Shein, 150 million people utilize the internet shop.
Shein will now have a stronger presence in American malls where its present and potential clients frequent. According to a news release, the company intends to try novel ideas including shop-in-shops and letting customers return items in-person.
Shein has already tested the waters of physical retail. There have been lengthy lineups of interested clients waiting outside the company’s limited-time pop-up shops in cities like Dallas and Los Angeles.
Sparc is a joint venture between Authentic Brands Group, a brand management organization with a portfolio of well-known retail names like Brooks Brothers, Lucky Brand, and Nine West, and Simon Property Group, the country’s largest shopping mall owner.