Digital fast fashion giant Shein has made a significant acquisition by taking over the UK women’s retailer Missguided from Frasers Group. It’s worth noting that Frasers Group had acquired Missguided just a little over a year ago when the brand faced financial difficulties and entered administration, which is the UK equivalent of bankruptcy.
Missguided’s financial challenges began in late 2021, but it received a lifeline in the form of an investment from private equity firm Alteri. Now, Shein aims to revitalize the struggling retailer using its innovative on-demand production model. This approach involves increasing product production only when there is demonstrated market demand, effectively reducing waste and excess inventory.
As part of the acquisition deal, Shein will license the Missguided brand intellectual property to Sumwon Studios, a new joint venture established between Shein and Missguided’s founder, Nitin Passi.
Missguided will be overseen through this joint venture, and Shein will take charge of manufacturing Missguided’s collections. The products of Missguided will be available as an independent brand on Shein’s platforms and Missguided.com. Donald Tang, the Executive Chairman of Shein, expressed the company’s commitment to meeting customer demand and its intention to reinvigorate the Missguided brand. Shein plans to leverage Missguided’s unique brand personality and expand its global presence by applying Shein’s on-demand production model, e-commerce expertise, and global reach.
This acquisition is part of Shein’s broader strategy, which includes a growing partnership with the U.S. fast fashion brand Forever 21. Together, these brands have announced plans to collaborate on a co-branded line of men’s and women’s apparel, exclusively available on Shein’s platforms. The move signals Shein’s ambitions to further expand its presence and influence in the fast fashion industry.
