Shein has recently acquired the British fast fashion brand Missguided from the Frasers Group, marking a strategic move aimed at broadening its market share and global presence in anticipation of an upcoming U.S. initial public offering. This acquisition, jointly announced by both companies, involves Shein taking over the production of Missguided’s items and independently selling them on both Shein and Missguided’s websites. Concurrently, the Frasers Group will retain ownership of Missguided’s real estate assets and staff, as outlined in official statements released by the involved parties.
As stipulated in the agreement, Shein will additionally grant a license for Missguided’s intellectual property to Sumwon Studios, a collaborative enterprise formed by Shein and Missguided founder Nitin Passi. Sumwon Studios will take on the responsibilities for the management and operation of the Missguided brand. The exact financial specifics of this acquisition have not been disclosed.
This acquisition comes about slightly more than a year after the Frasers Group stepped in to save Missguided from administration, a process similar to bankruptcy in the United Kingdom. The rescue came at a cost of £20 million ($24.3 million). Missguided had originally gained prominence through its viral success in offering £1 bikinis, establishing itself as a significant presence in the British fast fashion landscape. However, financial difficulties ultimately rendered the brand unable to meet its obligations to suppliers.
Shein’s move to acquire Missguided strongly resonates with its aim to broaden its marketplace model and enrich its product range for its extensive customer base of 150 million. This acquisition is positioned to strengthen Shein’s position in the market and enhance its global footprint even further.
Although Missguided’s product range aligns with that of its new parent company, with an emphasis on current fashion trends and competitive pricing, there are variances in terms of pricing that could potentially appeal to a distinct demographic. Shein’s executive chairman, Donald Tang, underscored the distinctive nature of this partnership in a press statement, underscoring the company’s commitment to revitalizing the Missguided brand and driving its worldwide expansion through the utilization of Shein’s on-demand production model, e-commerce proficiency, and extensive global reach.
Before this acquisition, Shein made a significant move by announcing intentions to introduce a jointly branded clothing collection in partnership with its former rival, Forever 21. This collaboration emerged from their previous alliance earlier in the year when Shein invested in Sparc Group, the entity overseeing Forever 21, encompassing brand management firm Authentic Brands Group and mall owner Simon Property Group. Expanding its footprint, Shein extended its clothing line to be available in physical stores operated by Forever 21.