Earlier this week, we told you all about Shein and Forever 21’s partnership under which Shein may open shop-in-shops at Forever 21 outlets.
And while that means US customers will soon be able to physically try on outfits from the trendy Chinese e-commerce retailer before buying them, it will also help Shein expand its reach within the country.
But is it a smart strategy, and will it benefit both retailers? Well, according to Claire Tassin, retail and e-commerce analyst at Morning Consult, the short answer is yes.
“Forever 21 stands to gain from Shein’s manufacturing speed that lets them respond to consumer trends incredibly quickly and draw in Shein’s still-loyal customers, reinvigorating the brand,” she told Retail Brew in an email, while also citing Morning Consult data that showed that most Americans prefer to shop for clothing in stores.
- About 52% of those surveyed said they preferred shopping in stores because it was a more enjoyable experience.
- Meanwhile, 49% of those who shopped in-stores did it because it was more convenient.
“The store channel is crucial if Shein wants to continue growing an audience beyond Gen Z shoppers as the brand’s popularity among this cohort is waning,” Tassin said.
Brian Ehrig, a partner at consulting firm Kearney’s consumer practice, agreed that since “there’s likely a lot of crossover with their target consumer…it could be a very interesting tie-up, and both will have potential gains,” he said. “For Forever 21, it could be a good way to drive traffic and increase its relevance with digitally native consumers. For Shein, it’s a low-cost, low-effort way to test physical retail.”
Meanwhile, Erin Schmidt, an independent retail analyst, had a slightly different take. While she agreed that it is a mutually beneficial partnership, she said Forever 21 stands to gain more. “Shein is seen as the trendiest of trendy fast fashion retailers with the latest styles and lowest prices, while Forever 21 has been aiming for a comeback, as it was the pioneer of fast fashion, but has been leapfrogged by competitors in recent years,” she said. “Therefore, having Shein items in Forever 21 stores will help to drive more customers and traffic into the stores, which inevitably leads to increased overall store sales as consumers browse other areas of the store, too.”
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Final word: But while it seems like a favorable collaboration overall, Shein also comes to the country with some…baggage. The fast fashion retailer has established somewhat of a reputation in the industry for alleged labor violations that claimed “mistreatment of Uyghurs, a marginalized group in China,” according to CNBC, and unsustainable practices that include producing about 6.3 million tons of carbon dioxide a year.
Ehrig believes that at least the sustainability allegations are unlikely to impact the minds of consumers in light of the new partnership as the brand is “already selling products to consumers in the US despite claims about questionable sustainability practices.”
Tassin, however, said Shein might gain some leverage in the eyes of the US consumer who has otherwise viewed the brand as “distrustful” due to the concerns.
An August 2023 study by Morning Consult found that American Gen Zers had “more favorable impressions” of brands like Shein. However, “brands like Shein still have a hill to climb in earning shoppers’ trust,” Tassin told Retail Brew. “The association with a familiar US brand will likely help soften those concerns.”