A recently forged partnership between prior fashion competitors, Singapore-based Shein and Korean American-owned Forever 21, is expected to bring together two of the biggest names in the fast fashion sector both online and inside malls across the country.
The New York Times reports that Shein’s products will operate in-store at Forever 21 outlets, while Forever 21 clothes will be sold on Shein’s website.
The deal also includes investments from each partner in shares of the other. Forever 21’s parent company Sparc Group is set to become a minority shareholder in Shein. In return, Shein will get a one-third stake in Sparc.
Shein’s executive director expressed that “We look forward to finding new ways to delight our customers through the potential of this partnership,” according to CNBC.
Shein, founded in 2012 by Chris Xu and now based in Singapore, is popular among young shoppers by taking fast fashion to the next level. The company’s technology and supply chain offers shoppers a variety of trendy options at ultralow prices.
Forever 21 is a multinational fast fashion retailer headquartered in Los Angeles which was founded back in 1984 by a poor Korean immigrant couple, Do Won and Jin Sook Chang. Its current CEO is Winnie Park.
Right now, both fast fashion industry companies are facing continuous criticism for their negative impact on the environment, especially regarding increased carbon emissions and waste production.
Shein also received much criticism for alleged child labor and potentially copying the designs of other creators. Similarly, Forever 21 has been accused of exploiting workers, according to the Los Angeles Times.
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