Companies seeking global expansion often acquire established brands to improve their international image and overcome regulatory barriers, as demonstrated by Shein's acquisition of Everlane to address supply chain concerns and reduce its Chinese identity in the eyes of Western markets.
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What does SHEIN want from Everlane?Added:
People are kind of losing their minds about the news that Shein has bought Everlane. People do not understand how a sustainable clothing brand with the tagline radical transparency could literally sell itself out to the fastest of fast fashion retailers. And I hate to break it to all my fellow millennials, but the story behind Everlane is simply the company needed cash. The brand had been losing power and was looking for a lifeline. What I think is more interesting here is what Shein wants from Everlane, a cleaner image. You see, Shein wants to run with the big dogs. It has tried to go public here in the US, in London, in Hong Kong, and it has failed every single time. The stock exchanges had too many regulatory questions about Shein's supply chains and labor practices. Another thing that's running against Shein right now is that it is very much seen as a Chinese company at a time when US-China relations are pretty tense. As one expert told me, for Shein to become global, it needs to actually be global.
So, it's collecting relationships with brands outside of China. First, it acquired Missguided, a UK label. Then, it formed a partnership with Forever 21.
Now, Everlane. Shein is likely hoping Everlane is a powerful marketing move.
The question is, will the acquisition just end up destroying the Everlane brand?
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