Clothes displayed on the Shein headquarters in Singapore on June 19, 2023.
Ore Huiying | Bloomberg | Getty Images
Shein has purchased British fast fashion brand Missguided from the Frasers Group as the corporate looks to expand its market share and global reach forward of a rumored U.S. initial public offering, the companies announced Monday.
The acquisition will see Shein manufacture Missguided’s merchandise and promote them on each corporations’ web sites as an unbiased brand, whereas Frasers will retain Missguided’s actual property and workers, in accordance to information releases.
As a part of the deal, Shein will license Missguided’s mental property to Sumwon Studios, a three way partnership between Shein and Missguided founder Nitin Passi. Sumwon will handle and function the Missguided brand.
The phrases of the deal weren’t disclosed.
The acquisition comes simply over a yr after the Frasers Group bought Missguided out of administration, or the British model of chapter, for £20 million ($24.3 million).
The brand gained prominence when it went viral for selling £1 bikinis and have become a serious participant in British fast fashion. But it later discovered itself in dire monetary straits and couldn’t pay its suppliers.
Shein’s acquisition of Missguided comes as the corporate looks to expand its marketplace model and provide a broader vary of merchandise to its 150 million prospects. The deal will permit Shein to develop its market share and deepen its global penetration.
Missguided’s assortment is comparable to strains carried by its new dad or mum firm as a result of the brand is concentrated on the most recent tendencies and skews decrease in worth. Even so, its merchandise may be dearer than Shein’s, and will appeal to a distinct demographic.
“The three way partnership now we have entered ushers in a brand new format of partnerships for Shein,” Donald Tang, Shein’s government chairman, mentioned in a information launch. “Shein goals to reignite the Missguided brand, capitalising on its distinctive brand character, and fuelling its global progress via SHEIN’s on-demand manufacturing mannequin, unparalleled e-commerce experience and global reach.”
Last week, Shein introduced plans to launch a co-branded clothes line with former rival Forever 21 after the two retailers partnered up in a three way partnership earlier this yr. Under the settlement, Shein took a stake in Forever 21’s operator Sparc Group, which incorporates brand administration agency Authentic Brands Group and mall proprietor Simon Property Group. Shein additionally started promoting its garments in Forever 21’s shops.
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