Gabriel Budi Sutrisno · · 1 min readShein buys stake in Forever 21 parent to form fast-fashion alliance
Photo credit: Melissa Goh / Tech in Asia
Singapore-based fashion retailer Shein is acquiring a one-third interest in US-based Sparc Group as part of a new partnership agreement between the two companies.
Sparc Group – which owns the fashion brand Forever 21 – will become a minority shareholder in Shein, according to a statement, without specifying details.
The partnership will expand Forever 21’s reach, enhancing its brand distribution through Shein’s online platform. Conversely, it will allow Shein to bring its products into Forever 21’s physical stores across the US.
Founded in 2017, Sparc Group is a joint venture between Authentic Brands and Simon Property. Apart from Forever 21, it distributes products from brands like Brooks Brothers, Eddie Bauer, and Reebok.
Meanwhile, Shein was established in China in 2008. It currently serves 150 million users globally.
The firm launched its marketplace in the US in May 2022. However, earlier this year, a group of individuals and businesses made a campaign to urge the closure of Shein in the US, citing multiple malpractices at the fast-fashion firm.
It has also been accused by Temu, another Chinese online marketplace, of prohibiting manufacturers from working with Temu via exclusivity agreements.
See also: Shein’s rapid rise in Southeast Asia could topple ecommerce giants
Editing by Miguel Cordon and Lorenzo Kyle Subido
(And yes, we’re serious about ethics and transparency. More information here.)
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