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Contributors›Ying Huang
Ying Huang photo

Professor at Manning School of Business

Ying Huang

Professor of Marketing with a demonstrated history of working in higher education. Research expertise in B2B Marketing, Foreign Market Entry, CSR and Retailing.

2 articlesLinkedIn ↗
Contributor Brief·Ying Huang · 2 articles
Updated Nov 20, 2023

Ultra-low cost retail models fracture under brick-and-mortar scale

Ying Huang argues that the ultra-low price model powering Shein and Forever 21 is fundamentally incompatible with physical retail expansion at scale, despite both retailers pursuing aggressive store openings. The partnership reveals a structural asymmetry: Forever 21 gains short-term market access while Shein captures the real prize—mainstream U.S. distribution legitimacy—but neither can sustain their model without confronting the cost pressures that brick-and-mortar operations impose.

2x

greater value advantage for Shein versus Forever 21 in partnership

“Shein gets the bigger slice from this partnership.”

Forever 21 Benefits From its Shein Strategic Partnership, But Shein Gets the Bigger Slice

Strategic partnership value distribution and sustainability pressures

Shein's mainstream legitimacy gain9
Forever 21's market access expansion6
Ultra-low cost model sustainability3
Brick-and-mortar scaling feasibility2

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45%Shein's mainstream
Shein's mainstream legitimacy gain
Forever 21's market access expansion
Ultra-low cost model sustainability
Brick-and-mortar scaling feasibility

1

core business model vulnerability: cost compression at physical scale

Ambitious brick-and-mortar expansion creates real pressure on cost models.

Lower Price Points May Not Be Sustainable for Shein and Forever 21's Partnership

Younger partner secures prize of mainstream legitimacy and U.S. distribution dominance.

Forever 21 Benefits From its Shein Strategic Partnership, But Shein Gets the Bigger Slice

“Established retailer gains market access; partnership masks deeper sustainability crisis.”

Themes:Ultra-low cost model fragility under physical retail expansionStrategic partnership asymmetry favoring brand legitimacy over immediate revenueStructural incompatibility between pricing power and store-based operations

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