Chinese e-commerce giant Shein has recently announced its acquisition of the popular U.K. online women's fashion label, Missguided. The deal was made with retailer Frasers Group, although the exact sum remains undisclosed.
Expanding Possibilities: Shein's Acquisition of Missguided
This transaction primarily involves the acquisition of Missguided's intellectual property and trademarks from Frasers. However, Frasers will retain both the brand's real estate and employees, who will now be integrated into the wider group's fashion division. This strategic move allows Frasers to rationalize their portfolio and focus on a select few brands, a decision that aligns perfectly with the current market climate according to Chief Executive Michael Murray.
A New Vision for Missguided's Future
In addition to this acquisition, Shein has also entered into an agreement with Sumwon Studios—a joint venture between Shein and Nitin Passi, the founder of Missguided. This agreement grants Sumwon Studios the license to manage the Missguided brand's intellectual property. Under this new partnership, Missguided's products and collections will be manufactured using Shein's on-demand production model, ensuring both quality and flexibility. These items will then be sold on both Shein's various e-commerce sites and Missguided.com as an independent brand.
A Promising Format for Future Partnerships
Donald Tang, Executive Chairman of Shein, expressed his excitement about this joint venture, emphasizing that it represents a new format for partnerships within the company. This move is part of Shein's unwavering commitment to meeting the ever-evolving demands of their customers.
With Shein's vast resources and expertise in the e-commerce market and Frasers' established presence in retail, this partnership between two industry giants is sure to lead to great success. As both companies continue to adapt to the changing landscape of online fashion, consumers can look forward to exciting developments from this new collaboration.
Shein Acquires Western Brand in Rare Deal
Shein, a leading retailer known for its affordable clothing, has made a rare acquisition of a Western brand. The Chinese-based company has experienced rapid growth in recent years, catering to shoppers worldwide with its low-cost clothing options. In a strategic move, Shein is transitioning from selling its own-branded clothing to becoming a marketplace for third-party sellers.
While Shein typically expands through investments rather than outright acquisitions, it recently purchased a stake in Forever 21. This deal enables Shein to sell Forever 21's dresses, jeans, and accessories on its website. The move aligns with Shein's plans to bring in more third-party brands as part of its expansion strategy. According to Shein's representative Tang, "We can't make everything we sell."
In a separate transaction, sports-fashion retailer Frasers, majority-owned by former chief executive Michael Ashley, acquired the Missguided brand for 20 million pounds ($24.2 million). Missguided faced financial difficulties, leading the Manchester-based online retailer to go into administration in June 2022.