Shein and Sparc Group partner in joint venture to reach new consumers
- Sparc Group and Shein entered a strategic partnership.
- The partnership is expected to expand Sparc Group’s distribution of Forever 21.
- The partnership also offers the opportunity to test Shein customer-focused experiences in Forever 21 locations along with enabling return to store.
Shein acquired an approximately one-third interest in Sparc Group Holdings II LLC — a joint venture that includes Authentic Brands Group and Simon Property Group — and Sparc Group became a minority shareholder in Shein. Financial details were not disclosed.
Headquartered in Singapore, Shein’s global, integrated marketplace offers affordable fashion and lifestyle shopping categories from Shein branded apparel to products from a global network of sellers. Shein’s e-commerce expertise and global reach provide Sparc Group a platform to further grow its brands.
Sparc Group is a joint venture that includes Authentic Brands Group — which manages a portfolio of well-known brands such as Forever 21, Eddie Bauer, Nautica, Brooks Brothers and Nine West — and Simon Property Group, the largest shopping mall owner in the country.
The partnership is expected to expand Sparc Group’s distribution of Forever 21. Shein’s platform currently serves 150 million online shoppers. The partnership also offers the opportunity to test Shein customer-focused experiences in Forever 21 locations across the U.S including shop-in-shops, enabling return to store and other initiatives.
“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.”
“Shien is thrilled to have Sparc Group as a partner and minority shareholder, and we look forward to finding new ways to delight our customers through the potential of this partnership,” said Donald Tang, Shein’s executive chairman. “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.”
“We are very pleased to welcome Shein as a strategic partner and shareholder in Sparc Group,” said Jamie Salter and David Simon, Directors of Sparc Group. “SHEIN is the world’s leading online fashion platform delivering style and value around the globe. We are looking forward to working together.”
As CNBC reported, Shein’s partnership with Sparc follows sharp criticism the fast-fashion retailer has received with allegations of forced labor, violating U.S. import tariff law and filling up landfills. Shein has denied those allegations.
Shein also had already ventured into physical retail. The retailer has had limited-time pop-up shops in cities such as Dallas and Los Angeles, which have drawn eager customers and long lines, CNBC reported.