Drawing from the success of Beyonce Knowles first fashion line, House of Dereon, a smaller and more affordable line called Dereon was born. Beyonce, a longtime singer, entertainer, and entrepreneur, established the sister line in collaboration with her mother and stylist, Tina Knowles and her sister, Solange. Tina, who designed outfits for Beyonce's first band, Destiny's Child, would incorporate her knowledge of fashion into the Dereon line. The name of the brand is inspired by Beyonce's first clothing line, which honors the three generations of women in their family. Specifically, the name Dereon pays tribute to Beyonce's grandmother, Agnez Dereon.

As opposed to House of Dereon, Dereon sells trendy clothes and accessories to economically conscious women. Defining themselves by their motto, "where the sidewalk and catwalk meet," Dereon continuously delivers reasonably priced, chic, and sophisticated clothes perfect for the day, as well as fancy enough for night. Each Dereon design is also inspired by the hottest trends from around the world. Selling mainly contemporary wear, Dereon's line also includes casual wear that features stylish sweatpants and hoodies. One of their most notable garments is their Deréon jeans, which are inscribed with an agu logo on each rear pocket. In fact, Beyonce sings about Deréon jeans in her hit single, "Single Ladies (Put a Ring on It)."The song was such a huge success in 2008 that it would also help to increase the popularity of the label.