So a new deal in the fash fashion world may
revolutionize the way you stop Sheehan and Spark Group who
owns Forever 21 announce a strategic partnership for more of
what this means in the retail world. We're bringing
in Cheddars news, senior reporter Michelle Castillo Michelle,
tell us more about this. She and Forever 21
deal and Forever 21 are combining forces to get more
clothing to the masses. So Spark Group owns Forever
21 as you mentioned, as well as a Post
Brooks brothers, Eddie Bauer, lucky brand, Naa
and Reebok. It's a joint venture between authentic brands
and Simon Property Group and now it has a minority
stake in Chinese e-commerce retail giant. She in return
, she will acquire about one third of Spark Group
. In a statement she and executive chairman Donald Tang
said the powerful confirmation combination of Simon's leadership and physical
retail, authentic brands development expertise and she's on demand
model will help us drive scalable growth and together make
fashion more accessible to all. So this deal will
help expand distribution forever. 21 for Forever 21 products
especially online and on the flip side, you can
expect more sheen pop ups in physical forever. 21
stores across the US, they will also have the
ability to return she products in Forever. 21 stores
in the near future and other aspects as well.
That's pretty big because she is so incredibly popular,
but you got to sort of mail it back when
you don't want a product. So fast fashion is
growing. How big of a player is she in
this world right now? It's huge, Georgia.
So have you been on tiktok or Instagram? You've
probably seen people trying on their halls or large shipments
of sheen clothing. I've seen some of these Tik
Toks where they actually have moving vans bringing in boxes
of clothing. That's how much stuff people order from
this company and actually about 100 50 million people shop
at she according to the company each month and in
a presentation obtained by the Financial Times, the company
expects its revenue to grow exponentially. So she expects
to earn nearly six billion dollars in revenue in 2025
which is more than double 2020 two's numbers. And
this year it's projecting to make about$32 billion.
The company also overtook Amazon last year as the most
downloaded shopping app. So those numbers are not too
far fetched that they can reach that billion dollar mark
in an investment round in April 2022 the company was
valued at$100 billion that exceeds Zara and H and
M valuation. There have been a lot of concerns
right now where fast fashion's effect on the environment.
And Sheehan is an ultra fast fashion player. Can
you talk us through this controversy? Well, fash
fashion speeds up the process of designing, manufacturing and
producing. So stores like she can have more popular
items available and in more colors. But as a
result, not only does the clothing production cause pollution
, the excess clothing that doesn't get sold, it
often ends up discarded. So according to the epa
, about 85% of all textiles or 11.3 million tons
end up in landfills annually. That's aboutÂŁ81.5 of
cloth per American per year. She and CEO has
said it produces about 50 to 100 pieces of each
item a day and if that item becomes popular,
then that item is mass produced. But because it
offers so many options, its use of virgin polyester
and oil uses the same amount of co two as
100 coal power, coal powered power plants daily.
And that's per this report from the Synthetic Anonymous 2.0
so it's using a lot of resources. We're not
buying all those products. And even though they make
limited runs of each item first, there's just so
many options that they're still producing quite a bit.
Thanks so much Michelle. Very insightful.