Shein, the Chinese fashion retailer, is joining forces with US clothing business Forever 21 in a deal in which the e-commerce platform acquires around a third of the brand's parent company Sparc Group, reports from the Wall Street Journal revealed.
In return, Sparc will acquire a minority stake in Shein, which is valued at US$66 billion, according to a funding round that occurred earlier this year.
Enabling the fast-fashion giant to feature Forever 21's clothing and accessories on its website, the move underpins Shein’s strategy to expand its offerings beyond its own manufactured goods.
Sparc Group, a joint venture between Authentic Brands Group and Simon Property Group (NYSE:SPG), owns and distributes products for multiple brands, including Forever 21.
For Forever 21, the collaboration provides access to Shein's vast customer base of 150 million users, allowing the brand to gain momentum after emerging from bankruptcy in 2020.
There is also potential for customers to be able to return Shein items at the 560 Forever 21 stores which could set the stage for the Asian group to develop into a marketplace similar to that of Amazon or Alibaba.