SHEIN and Forever 21 Launch a Joint Brand, Future Collaboration with More Brands

[Ebrun original] On October 29, Authentic Brands Group (ABG) announced a long-term cooperation agreement with SHEIN, a global fashion and lifestyle online retailer, to launch the Forever 21 brand. The globally renowned original fashion retail brand Forever 21 will form a strategic partnership with SHEIN, covering major male and female fashion and lifestyle categories.

Launching the Forever 21 x SHEIN Joint Brand, Potential Collaboration with More Brands in the Future

In this collaboration, SHEIN will design, manufacture, and sell a range of Forever 21 branded clothing and accessories, including casual sportswear, swimwear, and other categories, effectively reducing inventory waste using SHEIN's industry-leading flexible on-demand production model.

At the same time, the online sales of this product line in the United States, parts of Europe, and the Australian market will also be handled by SHEIN.

In addition, this local collaboration establishes the foundation for future collaborations between SHEIN and more brands. Jamie Salter, the founder, chairman, and CEO of ABG, stated that the company owns over 50 brands and can collaborate with SHEIN in a broader range of categories such as furniture and home in the future. This collaboration with Forever 21 is just the beginning.

Fully integrating the strengths and resources of both sides

"As the retail market continues to evolve, online interaction has become the cornerstone of driving e-commerce development. SHEIN has innovated the way it interacts with consumers and can agilely analyze and convey trends, redefining and leading the trend of interaction between brands and consumers," Jamie Salter said. "We are looking forward to leveraging the many advantages of SHEIN to elevate the Forever 21 brand to new heights."

Donald Tang, Executive Director of SHEIN, stated, "We are delighted to bring the beloved brand Forever 21 to more SHEIN users through our flexible supply chain and online sales capabilities. Forever 21 and SHEIN share a common mission, and we look forward to continuously providing users with rich, diverse, and cost-effective products through our collaboration with ABG, allowing everyone to enjoy the beauty of fashion."

The collaboration between Forever 21 and SHEIN fully integrates the strengths and resources of both sides to create a new era of online retail. Recently, within the Ontario Mills shopping center, SHEIN also launched the first pop-up store set up within a Forever21 store, reportedly attracting over 7,000 consumers in four days. Jamie revealed that this has driven a 62% year-on-year growth in Forever 21 sales.

SHEIN's global influence continues to drive innovation and transformation in the fashion industry

Prior to this strategic collaboration, SPARC Group, the parent company of Forever 21, announced in August this year that SHEIN had acquired approximately one-third of SPARC Group's shares, and SPARC Group would also hold a minority stake in SHEIN. SPARC Group is a joint venture between ABG and Simon Property Group. ABG owns over 50 globally renowned lifestyle, entertainment, and media brands such as Marilyn Monroe, Reebok, Brooks Brothers, and Forever 21. Data shows that as a globally renowned original fashion retail brand, Forever 21's sales are set to return to peak levels of $4 billion in 2022. Jamie Salter, founder, chairman, and CEO of ABG, told the media that the cooperation with SHEIN will undoubtedly enhance the competitiveness of Forver21 because of its technology-driven production system.

Donald Tang told the media that the on-demand production model is a trend in the fashion industry, and we are pleased to apply this model to more partners in the fashion industry.

According to a report by the renowned U.S. consulting firm Boston Consulting Group titled "Agile Supply Chain: New Sources of Competitive Advantage in the Fashion Industry," the agile on-demand supply chain model represented by SHEIN can help companies respond quickly to market changes, achieve supply-demand balance, reduce inventory costs, improve capital efficiency, increase revenue, or share benefits with customers through more affordable product prices. The establishment of an agile supply chain model by enterprises has become the general trend for survival and development.

Insiders believe that through deep cooperation with international brands such as Forver21, SHEIN can inject new vitality into more global brands, promote flexible transformation of enterprises and brands with on-demand production, and continue to enhance its global influence in the fashion industry. While leading the overall upgrade and sustainable development of the fashion industry, SHEIN's flexible supply chain flywheel will further spark growth driving forces, creating a sustained positive cycle effect.

A recent survey by the U.S. financial institution Piper Sandler showed that SHEIN was selected as the second most popular shopping website and the fourth most beloved clothing brand among American youth, with higher penetration and rankings than last year. It has become one of the companies that simultaneously entered the double list with Nike.