Shein Expands Its Fashion Empire By Acquiring Struggling UK Brand Missguided


Shein, the fast fashion giant known for its agile supply chain in China, has made headlines by expanding its product range through acquisitions. The Singapore-based company recently announced its acquisition of Missguided, a struggling fashion brand based in Manchester, UK. The deal, which was completed for an undisclosed amount from Fraser Group, confirms earlier reports of Shein’s interest in purchasing Missguided.

Key Takeaway:

Shein’s acquisition of Missguided marks a significant shift in the fast fashion landscape, as Chinese companies gain influence. Shein’s success in on-demand manufacturing has propelled its valuation to

00 billion, making it a formidable player in the industry.

In the fast fashion industry, power dynamics are shifting, with companies like Shein gaining prominence. Traditionally dominated by Western brands, the industry is now witnessing a trend towards companies that have strong ties with Chinese manufacturers. Shein, with its partnerships and efficient supplier software that matches factory capacity with real-time demand, has established itself as a force to be reckoned with. This approach allows Shein to quickly respond to consumer behavior while keeping inventory costs down.

The success formula that has driven Shein’s growth remains to be seen if it can revitalize the struggling Missguided brand. Once considered a trailblazer in online fashion, alongside brands like Asos, Boohoo, and PrettyLittleThing, Missguided experienced rapid growth during the pandemic but has since struggled with the reopening of physical stores.

In late 2021, Missguided was fortunate to be saved by Alteri, a retail investor backed by Apollo Global Management. Alteri took over Missguided’s debt and acquired a 50% stake. Prior to this, Missguided faced financial difficulties, with suppliers filing winding-up petitions due to owed millions of pounds. In June 2022, British retail group Fraser Group acquired Missguided out of administration for $20 million.

Aside from financial troubles, both Missguided and Shein have faced criticism from environmentalists for promoting a culture of overconsumption. Missguided, in particular, attracted backlash for its marketing stunt of selling one-pound bikinis at a loss, which resulted in an overwhelming response from consumers.

As part of the deal, Missguided’s founder, Nitin Passi, and Shein will form a joint venture, granting Shein access to Missguided’s intellectual property through a licensing agreement. Shein will take over the manufacturing and distribution of products from the joint venture.

This acquisition closely follows Shein’s recent purchase of a minority stake in Forever 21, another fast fashion brand that filed for bankruptcy in 2019 but continued operating under new ownership. Through this investment, Shein plans to design, manufacture, and distribute a new line for Forever 21.

Overall, Shein’s expansion into acquiring struggling fashion brands signifies its dominance in the industry, as it leverages its innovative supply chain and manufacturing capabilities to bring about transformations in the fast fashion landscape.

Leave a Reply

Your email address will not be published. Required fields are marked *