Authentic Brands Group and Shein strengthen their Forever 21 agreement

The merger between Forever 21 and Shein in August made quite a splash. The ultra-fast fashion giant’s interest in one of the strongest brands in American fashion retailing over the last 20 years resulted in Shein acquiring a stake of around a third in Sparc Group, the entity that owns Forever 21 through a joint venture between Authentic Brands Group and Simon Property Group. At the same time, Sparc Group took a minority stake in the Chinese company, now based in Singapore.

On October 27, the announcement of an agreement between ABG, the ultra-active American group in the field of buying fashion brands and chains, and Shein marked a new step in the agreement between two major global fashion players.

“Shein will design, manufacture and distribute a Forever 21 line of apparel and accessories including sportswear, athleisure and swimwear,” the groups said in a statement. Called Forever 21 x Shein, the line will be based on Shein’s on-demand production model. The collection will be available at the Asian giant’s sites in the United States, selected European markets and Australia. The press release hints that it will also be offered in Shein’s physical points of sale, and could therefore be featured in the increasingly important pop-ups that the brand is rolling out in Europe and the United States. Despite the controversy surrounding Shein and its model, ABG’s management has decided to move forward with the retailer, which in the space of ten years has become one of the world’s most powerful players in the distribution of low-cost clothing.

“Shein’s innovative approach to consumer engagement enables it to deliver trends at high speed. In an evolving retail landscape, where digital interaction has become the cornerstone of e-commerce, Shein has led the way in redefining the way brands connect with consumers,” said Jamie Salter, founder and CEO of ABG.

The interaction between Forever 21 and Shein is also physical, as in early October Shein featured in a Forever 21 shop located in the Ontario Mills centre, in the suburbs of Los Angeles (a site owned by Simon Property). The partners claim to have attracted some 7,000 visitors in the space of a few days.

“We are delighted to bring the famous Forever 21 brand to Shein customers through our production capabilities and online store,” said Donald Tang, executive chairman of Shein, in a statement. “Forever 21 and Shein share the same mission: to provide products our customers love at an incredible price. This exciting new aspect of our partnership with Authentic reinforces our goal of making fashion accessible to everyone and we look forward to making it a reality for our customers.”

It remains to be seen what the pace of collaboration between the two players will be, and how Shein will be displayed in the 572 online and physical Forever 21 outlets claimed by the American retailer worldwide.

Above all, between ABG’s ambitions for growth and Shein’s desire for a stock market flotation, it will be interesting to see whether other opportunities for collaboration between the two giants could emerge. ABG has more than fifty brands and retailers in its portfolio. If Jamie Salter’s teams are convinced by this first partnership, could Shein sign collaborations with Aeropostale, Juicy Couture, Airwalk or even the Marilyn Monroe and Muhammad Ali brands owned by the American group?