Big online fashion brand Shein breaks into brick-and-mortar with Simon
Shein, a global online fast-fashion retail giant that reaches 150 million customers, has entered into a partnership that will expand its offerings and give it a base in brick-and-mortar.
Shein, which is headquartered in Singapore and known for its value-priced fashion offerings, and Sparc Group Holdings have entered into a "strategic partnership" under which Shein will acquire an approximately one-third interest in Sparc Group, a joint venture that includes Simon Property Group and Authentic Brands Group, the brand management company with a fast-growing portfolio of well-known retail names that include Forever 21, Aeropostale, Brooks Brothers, Lucky Brand, Nine West, Nautica and more.
In addition, Sparc Group will become a minority shareholder in Shein, which reported annual revenue of about $22.7 billion last year. Financial terms of the agreement were not disclosed.
The partnership is expected to expand Sparc Group's distribution of Forever 21, leveraging Shein's extensive global customer base. It also gives Shein the opportunity to test customer-focused experiences in Forever 21 locations across the U.S. including shop-in-shops. The retailer has more than 400 stores nationwide.
Shein has already made some forays into U.S. physical retail, opening pop-up shops in cities that include Dallas, Los Angeles and, most recently, Las Vegas.
"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," said Shein’s executive chairman Donald Tang.
Shein and Sparc plan to share their complementary platforms and expertise to “boost product innovation, explore new business strategies, enhance customer experiences, and grow their presence in the marketplace,” according to a press release announcing the deal.
"Shein is the world's leading online fashion platform delivering style and value around the globe," stated Jamie Salter and David Simon, directors of Sparc Group. "We are looking forward to working together."
Forever 21 recently hired an artificial intelligence provider to maximize the value of its omnichannel data through the delivery of relevant, personalized customer experiences.
"We are excited for the partnership with Shein as it reflects our shared vision of providing customers with unparalleled access to fashion at affordable prices," said Marc Miller, CEO of Sparc Group. "By working together, we will provide even more innovative and trendsetting products to fashion enthusiasts around the world."
Shein was valued at $66 billion earlier this year, reported The Wall Street Journal.