The US company Sparc Group LLC wants to drive the growth of its fast fashion brand Forever 21 through a strategic partnership with the online clothing retailer Shine.
Under the terms of the agreement, which was announced Thursday, Shein will acquire approximately one-third of the shares in Sparc Group Holdings II LLC. In return, the joint venture between the fashion and media group Authentic Brands Group (ABG) and the real estate company Simon Property Group will receive a minority stake in Shein.
As part of the partnership, Sparc wants to leverage Shine’s “unique e-commerce expertise and global reach” to further drive the growth of the group’s brands. Specifically, the distribution of the Forever 21 label is to be expanded through its presence on the Shine online platform. This also gave Shine’s customers “added value and greater choice,” Sparc explained in a statement. Shine will also have the opportunity to test its omnichannel services in Forever 21’s US stores.
Sparc and Shine plan to use their complementary platforms and knowledge to accelerate product innovation, develop new business strategies, improve the shopping experience and expand their market presence.
Commending the agreement, Sparc CEO Mark Miller said: “We are excited to partner with Shein because it reflects our shared vision of offering consumers unparalleled access to affordable fashion,” he said in a statement. “Through our collaboration, we will bring even more innovative and forward-thinking products to fashion enthusiasts around the world.”