Authentic Brands Group and Shein enhance their partnership with Forever 21

Forever 21 and Shein, the giants in the fast fashion industry, have strengthened their partnership, both parties announced on October 27th. Shein's investment in the state of the Forever 21 brand came as part of a deal made in August. The Chinese company, now located in Singapore, attained a roughly one-third stake in Sparc Group, the party that owns Forever 21 via a partnership between Authentic Brands Group (ABG) and Simon Property Group. Shein's stake acquisition in Sparc Group came in conjunction with the latter’s minority stake acquisition in the former.

The new plan, proposed by ABG - a prominent American group known for purchasing fashion labels and outlets - and Shein, is another step in the collaboration of these two significant international players in the fashion industry. It was revealed in a statement that 'Shein will create, produce and distribute a Forever 21 range of clothing and accessories, comprised of athletic wear, leisurewear and swimsuits'. The line, named Forever 21 x Shein, will be founded on the on-demand production model of Shein. This exclusive collection is set to be purchasable on Shein's US-based websites and selected European markets, as well as Australia. Furthermore, it is expected to be made available in a sizable network of Shein's stores, making it a staple of the brand's expanding pop-up presence throughout Europe and the US.

James Salter, founder and CEO of ABG, supports their collaboration with Shein and its business model, despite its controversial reputation. Salter praised Shein’s customer-focused approach and quick turnaround of trendy clothing that is a flagship characteristic of the major player in the cheap clothing global market. He stated, 'Shein has led the way in transforming how brands connect with consumers in this ever-changing retail environment where digital interaction has become a key player of e-commerce.'

Donald Tang, executive chairman of Shein, too conveyed his excitement on the partnership by saying, 'We are thrilled to introduce the celebrated Forever 21 brand to Shein customers through our manufacturing capabilities and online outlet. Forever 21 and Shein share a common vision: to provide products our customers adore at an unbeatable price. This fresh aspect of our partnership with Authentic bolsters our objective of making fashion approachable to all and we look forward to making this vision a reality for our customers.

The frequency of cooperation between Forever 21 and Shein, and how Shein will be showcased in the 572 claimed physical and online Forever 21 outlets around the globe are still questions that need to be answered. With ABG's expansion strategy and Shein's ambitions for stock market listing, it will be intriguing to find out if more collaboration opportunities between the two powerhouses will arise. ABG has more than fifty brands and outlets in its repertoire. If Jamie Salter's team believes in this initial partnership, will Shein consequently enter into agreements with Aeropostale, Juicy Couture, Airwalk or even with Marilyn Monroe and Muhammad Ali brands under ABG's ownership?