Dive Brief:
- Authentic Brands Group and Shein have deepened their partnership with a long-term agreement to launch a co-branded Shein and Forever 21 collection, the companies announced Friday.
- Through the deal, Shein will design, manufacture and distribute the line of apparel and accessories, including sportswear, activewear and swimwear. Sales will occur via Shein’s e-commerce platforms in the U.S., parts of Europe and Australia, as well as other Shein-branded retail and digital channels.
- The partnership follows the August announcement of Forever 21’s operator, the Sparc Group, part of Authentic, becoming a minority shareholder in Shein. That deal allowed the fast fashion rivals to distribute each other’s products through both companies’ digital and retail channels.
Dive Insight:
At the time of the two companies' initial deal, apparel analysts noted that both China-founded and Singapore-based Shein and Forever 21 stand to benefit from the arrangement.
Forever 21 has been struggling in the fast fashion sector, faring the worst of the Sparc-operated brands in 2022. Though Shein has experienced substantial financial growth, it faces increased pressure from U.S. lawmakers on its supply chain practices.
“While Forever 21 isn’t premium, it is a credible brand that adds more fashion heft to Shein’s offer and may help attract some new consumers,” Neil Saunders of GlobalData said in emailed comments to Fashion Dive in August. “Shein will also hope that the addition of a well-known American name will help to lessen focus on its manufacturing practices, which have come under scrutiny.”
Saunders said that Shein’s stake in Forever 21 may signal an eventual takeover of the brand.
The newly-announced co-branded line will “leverage SHEIN’s industry-leading, on-demand production model,” which the release says helps reduce inventory waste.
"SHEIN's innovative approach to engaging with consumers gives them the ability to deliver trends at speed,” Jamie Salter, founder, chairman and CEO of Authentic, said in the release. “With an evolving retail landscape, where digital interaction has become the cornerstone of e-commerce, SHEIN has led the way in redefining how brands connect with consumers. We are excited to partner with SHEIN, as this collaboration perfectly fits into our distribution strategy for the brand's new key markets."
It’s been a busy year for Authentic, a company known to buy struggling brands, which owns a portfolio of more than 50 lifestyle and entertainment names. It recently closed on the purchase of Boardriders, which includes brands such as Quiksilver and Roxy. It also announced deals to acquire the intellectual property of Vince and Hunter Boots, as well as buying Rockport out of bankruptcy.
