Shein acquires Missguided
Chinese online fashion store Shein has recently strengthened its portfolio by acquiring the British fashion brand Missguided. The exact financial details of the acquisition have not been disclosed. The label will be added to Shein’s own online platform.
Shein’s interest in Missguided has been a topic of discussion for some time. Several months ago, it was revealed that the platform was in negotiations with Frasers Group, the parent company of Missguided. In the now confirmed acquisition, Shein secures the intellectual property and trademarks of Missguided. The real estate holdings and employees will remain under Frasers Group.
Missguided acquired by Frasers Group 1 year ago
Frasers Group itself acquired Missguided just a year ago after it fell into administration. That acquisition was worth 23.5 million euros at the time. According to the Group, it now wants to focus on fewer brands in the future. This is why it decided to sell the brand.
About the reasons behind the acquisition, Donald Tang, chairman of Shein, stated: “Shein aims to breathe new life into the Missguided brand, capitalize on its unique brand personality, and drive global growth through Shein’s on-demand production model, ecommerce expertise and global reach.”
‘Shein wants to capitalize on Missguided’s brand identity.’
Missguided targets a young shopping audience. Shein can now tap into that target market. Additionally, the Chinese fashion platform can increase its market presence in Europe and the United Kingdom as a result of the acquisition.
The decision to only acquire the intellectual property and trademarks while leaving the physical assets and staff under Frasers Group is a notable aspect of this deal. It seems Shein is focusing on the brand’s essence and the leveraging of their own operational strengths, rather than extensive restructuring or merging of physical assets.
Step towards global expansion
Shein’s acquisition of Missguided seems like a step towards global expansion, as it is the first time that the Chinese platform acquires a British brand. The label will be added to Shein’s online platform, which currently serves around 150 million users.