Everlane acquired by Shein, signaling struggles for millennial brands
8 reported
According to a report by fashion editor Lauren Sherman of Puck, eco-conscious apparel brand Everlane has been acquired by fast-fashion conglomerate Shein for approximately $100 million. The deal, approved by Everlane’s board hours after the news broke, sparked online outrage from consumers who viewed Shein as the antithesis of Everlane’s values of transparency and ethical manufacturing. Sherman explained on the podcast Today, Explained that Everlane, launched around 2010-2012, built its brand on radical transparency, telling customers the cost to make products, profit margins, factory locations, and fabric sources. The brand thrived for about a decade, peaking around 2018-2019, but began to struggle after raising more money, making strategic product changes that did not align with shifting consumer tastes, and selling a majority stake to a private equity firm. Sherman noted that other millennial-coded brands like Glossier and Allbirds are also struggling, while Warby Parker has succeeded due to finding a white space in the eyewear market. She estimated a 2 percent chance of Everlane making a comeback, 0 percent for Allbirds, and a potential recovery for Glossier.
What’s reported
Everlane was acquired by Shein for reportedly $100 million.
The deal was approved by Everlane’s board hours after Lauren Sherman broke the news.
Online outrage followed, with consumers upset that Everlane sold to Shein, which has an opaque supply chain and sells cheap products.
Everlane launched around 2010-2012 with a promise of transparency, telling customers costs, profits, factory locations, and fabric sources.
The brand was at the center of the normcore trend and did well until around 2018-2019.
Everlane sold a majority stake to a private equity firm, made strategic product changes, and lost cultural relevance as competitors like Uniqlo rose.
Other struggling millennial brands include Glossier and Allbirds; Warby Parker has done well.
Sherman gives Everlane a 2 percent chance of comeback, Allbirds 0 percent, and Glossier a potential recovery.
Key figures
Lauren Sherman, fashion editor at Puck, who broke the Everlane news.
Noel King, co-host of Today, Explained.
Sources: vox.com
