Shein to bolster US retail presence with Sparc partnership
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E-mail China Daily, August 26, 2023
Shein, a global online marketplace for fashion, beauty and lifestyle products, announced a strategic partnership with Forever 21's operator, Sparc Group, on Thursday, as the company seeks a larger brick-and-mortar presence in the United States.
Under the deal, Shein will acquire about a third of Sparc and the latter will also take a minority stake in Shein.
Sparc is a joint venture that includes Authentic Brands Group, a brand management company with a portfolio of well-known names like Forever 21, Brooks Brothers, Lucky Brand and Nine West; and Simon Property Group, the biggest shopping mall owner in the United States.
The partnership will enable Shein to build shops-within-shops in Forever 21's retail locations across the US. Forever 21 is known for its trendy clothing favored by young consumers.
Donald Tang, Shein's executive chairman, said: "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."
The deal also allows Forever 21 to sell products on Shein's platforms, which have about 150 million registered users.
Marc Miller, CEO of Sparc Group, said the partnership reflects its shared vision of providing customers with unparalleled access to fashion at affordable prices, and enables the company to offer even more innovative and trendsetting products to fashion enthusiasts around the world.
Shein was founded in Guangzhou, Guangdong province and has become popular among US shoppers in recent years.
The company's technology and China-based supply chain allow for hundreds of new styles to be manufactured and delivered in weeks, offering shoppers, especially teenagers, more tailor-made options.
Li Mingtao, chief researcher of e-commerce at China International Electronic Commerce Center, said the move would allow Shein to gain a better foothold in brick-and-mortar retailing overseas.
The company currently has limited-time pop-up shops in cities, including Dallas and Los Angeles, which have drawn eager customers and long lines.
"A core competitiveness of Shein on the global stage is its flexible industry chain. The company is flexible in producing a small batch of orders first, and can produce again frequently according to order amount," he added.
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