Deep strategic cooperation and synergy SHEIN and Forever21 launch joint brand

On October 29 , ABG Brand Group ( Authentic Brands Group ) , a global brand development, marketing and entertainment platform, announced that it had reached a long-term cooperation agreement with SHEIN, a global fashion and lifestyle online retailer , for the Forever 21 brand . The world-renowned original fashion retail brand Forever 21 will form a strategic cooperation with SHEIN , covering major men's and women's fashion and lifestyle categories .

Launch of Forever 21 x SHEIN joint brand   Lay the foundation for more brand cooperation in the future

In this collaboration , SHEIN will design , manufacture and sell a series of Forever 21 branded clothing and accessories , including casual sportswear , swimwear and other categories . The Forever 21 x SHEIN joint brand will utilize SHEIN's industry- leading flexible on-demand production model to effectively reduce inventory waste . At the same time, SHEIN will also be responsible for the online sales of this series of products in the United States, parts of Europe and Australia . SHEIN's industry-leading flexible supply chain and vast online market will strategically assist Forever21's development and growth.

Industry insiders analyzed that, combined with the brand effect and influence of well-known local brands, SHEIN's industry-leading flexible supply chain and vast online market will be able to generate stronger growth drivers, and the in-depth strategic cooperation between the two parties will open up broad development space for SHEIN and Forever21. SHEIN has an industry-leading on-demand production flexible supply chain model, which can not only provide real-time insights into market trends and better meet users' fashion needs, but also greatly reduce inventory waste by testing small orders first, and then adding or stopping production based on demand feedback. The flexible supply method can also feed back the saved waste to consumers at a more affordable price, which will further enhance Forever21's product competitiveness. In addition, SHEIN's rich operational experience in the field of online retail, user coverage, and influence in the global market will also help Forever 21 expand its user base worldwide.

This strategic cooperation based on Forever 21 marks the implementation of in-depth collaboration between the two companies in brand business, and also lays the foundation for more brand cooperation in the future.   Founder, Chairman and CEO of ABG   Jamie Salter said that his company has more than 50 brands and can cooperate with SHEN in furniture, home furnishing and other categories in the future. The cooperation based on Forever 21 is just the beginning .

Fully integrate the advantages and resources of both parties to achieve deep collaboration

"As the retail market continues to evolve, online interactions have become the cornerstone of e-commerce. SHEIN has innovated ways to interact with consumers and is able to agilely analyze and communicate trends, which redefines and leads the trend of interaction between brands and consumers," said Jamie Salter. "We are looking forward to leveraging SHEIN's many strengths to elevate the Forever 21 brand to a whole new level."

Donald Tang, Executive Director of SHEIN, said, “We are pleased to bring Forever 21, a beloved brand, to more SHEIN users through flexible supply chain and online sales capabilities. Forever 21 and SHEIN share a common mission, and we look forward to continuing to provide users with rich, diverse and cost-effective products through cooperation with ABG, so that everyone can enjoy the beauty of fashion.”

The cooperation between Forever 21 and SHEIN can fully integrate the advantages and resources of both parties and create a new era of online retail. Recently, SHEIN also launched its first pop-up store in Forever 21 at Ontario Mills Shopping Center. It is reported that it attracted more than 7,000 consumers in four days. Jamie revealed that this has driven Forever 21's sales to grow by 62% year-on-year.

SHEIN's global influence continues to grow, driving innovation and change in the fashion industry

Prior to this strategic cooperation , Forever 21's parent company SPARC Group announced in August this year that SHEIN had acquired approximately one-third of SPARC Group's equity , and SPARC Group will also own a small stake in SHEIN. SPARC Group is a joint venture between ABG Brand Group and Simon Property Group . ABG Brand Group owns more than 50 world-renowned lifestyle, entertainment and media brands such as Marilyn Monroe, Reebok, Brooks Brothers, Forever 21, etc. Data shows that as a world-renowned original fashion retail brand, Forever 21's sales in 2022 returned to its peak of US$4 billion. ABG founder, chairman and CEO   Jamie Salter told the media that the cooperation with SHEIN will undoubtedly enhance Forver21's competitiveness because it has a technology-driven production system.

Donald Tang told the media that the on-demand production model is the trend of the fashion industry, and we are very happy to apply this model to more partners in the fashion industry.

The Boston Consulting Group, a well-known American company, pointed out in its report "Agile Supply Chain: A New Source of Competitive Advantage in the Fashion Industry" that the on-demand agile supply chain model represented by SHEIN can help companies quickly respond to market changes and balance supply and demand, thereby reducing inventory costs, improving capital efficiency, increasing revenue, or sharing profits with customers through more affordable product prices. It is a general trend for companies to create an agile supply chain model for survival and development.

Industry insiders believe that through in-depth cooperation with international brands such as Forver21 , SHEIN will be able to inject new vitality into more and more global brands and promote companies and brands to carry out flexible transformation of on-demand production . SHEIN's influence in the global fashion industry will continue to increase. While leading the upgrading and sustainable development of the entire fashion industry , it will promote its own flexible supply chain flywheel , further unleash the driving force of growth , and form a continuous positive cycle effect .

A recent survey by Piper Sindler, an American financial institution , showed that SHEIN was selected as the most popular shopping website ( second place ) and the most beloved clothing brand ( fourth place ) among young people in the United States . Its penetration and ranking continued to improve compared to last year, making it one of the two companies selected for both lists along with Nike .

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