Forever 21 parent and Shein strike deal to distribute both companies’ products
Under the agreement, the Sparc Group will become a minority shareholder in Shein.
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," Donald Tang, Shein's executive chairman, said in the release. "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."
Under the deal, Shein will hold a one-third interest in Sparc Group, a joint venture between Forever 21 parent companies Authentic Brands Group and Simon Property Group, and Sparc will become a minority shareholder in Shein.
The partnership allows for increased distribution of Forever 21 to Shein’s customer base, per the companies, and gives Shein the opportunity to test its brand experiences in Forever 21 stores across the United States, including shop-in-shops and return-to-store initiatives.
The two companies hope the partnership will “utilize their complementary platforms and expertise to accelerate product innovation, explore new business strategies, enhance customer experiences, and grow their presence in the marketplace,”
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