Recently, SPARC Group Holdings II LLC (hereinafter referred to as “SPARC Group”) announced a strategic partnership with SHEIN, a global online fashion and lifestyle retailer. According to this cooperation, SHEIN will acquire about one-third of the shares of SPARC Group, and SPARC Group will also hold a small number of shares of SHEIN.
SPARC Group is a joint venture between ABG Brand Group and Simon Property Group. It has more than 4,200 retail stores and shops in the world, and its operating brands include Forever 21, Brooks Brothers and Reebok.
Both SHEIN and Forever 21 are fast fashion brands, and their target audiences are similar, but SHEIN mainly sells through online channels, while Forever 21 is known as a physical store.
It is reported that this cooperation will enable both parties to broaden different ways to obtain customers. Specifically, Forever 21′ s clothing and accessories will be sold on SHEIN’s website. At the same time, through this cooperation, SHEIN can reach out to more consumers and provide a richer consumption experience with the help of Forever 21′ s offline retail network, including setting up a SHEIN area in Forever 21′ s stores in the United States and realizing offline returns and other services.
Marc Miller, CEO of SPARC Group, said: “We are very happy to establish a partnership with SHEIN, which is in line with our common vision, that is, to give more consumers the opportunity to enjoy affordable fashion products. This cooperation provides an opportunity for global fashion lovers to bring more innovative and trend-setting products. ”
Donald Tang, executive chairman of SHEIN, said: “We feel very honored to be a partner and shareholder of SPARC Group. Simon Real Estate’s leading position in the physical retail industry, coupled with the brand management experience of ABG brand companies, coupled with SHEIN’s on-demand model, will help promote the sustained growth of our business and let more people enjoy the beauty of fashion. ”
It is worth noting that SHEIN has begun to try to expand offline channels and plans to open about 30 pop-up shop in Europe, the Middle East and Africa in the second half of this year. This move will help SHEIN get closer to consumers, establish a brand image and improve brand promotion.
In addition, SHEIN’s acquisition of fast fashion brands is also part of its expansion of influence. According to reports, SHEIN participated in bidding for Arcadia Group, the parent company of British fast fashion brand Topshop, but eventually lost to fast fashion e-commerce ASOS. There are also rumors that SHEIN intends to acquire another fast fashion brand, Missguided.
With the gradual improvement of supply chain and logistics system, SHEIN is moving towards the development goal of international brands.
Post time: Aug-30-2023