Dive Brief:
- Shein has acquired the U.K.-based Missguided apparel brand from Frasers Group, according to a company announcement Monday. Financial terms weren’t disclosed, and a Shein spokesperson didn’t comment beyond the press release.
- Along with the deal, Shein entered an agreement to license the intellectual property of Missguided to Sumwon Studios, a joint venture between Shein and Missguided’s founder, Nitin Passi.
- The acquisition deepens the fast fashion giant’s presence in the U.K., where it recently disclosed $1.38 billion in revenue between September 2021 and December 2022.
Dive Insight:
Shein’s financial figures place it as the 14th largest U.K. apparel retailer in 2022, according to GlobalData, with a 1.7% share in that market. Last month, GlobalData predicted that Shein could boost its market share further in the region to 2.2% in 2023.
At the time, a GlobalData analyst said that the acquisition of Missguided, which was rumored from multiple outlets, would allow Shein to become even more dominant in the market.
Under the deal, Missguided will be managed through the Sumwon Studios joint venture, with its products and collections to be manufactured through Shein’s model, and sold on the Shein and Missguided websites.
"The joint venture we have entered ushers in a new format of partnerships for SHEIN, as part of our unwavering commitment to meet customer demand," Donald Tang, executive chairman of Shein, said in the release. "SHEIN aims to reignite the Missguided brand, capitalising on its unique brand personality, and fuelling its global growth through SHEIN's on-demand production model, unparalleled e-commerce expertise and global reach."
The acquisition follows Shein’s partnership with fast fashion rival Forever 21.
In August, Shein struck a deal with Sparc Group, the operator of Forever 21, which allows the brands to distribute each other’s products through both companies’ digital and retail channels. Shein now holds a one-third interest in the Sparc Group, and Sparc became a minority shareholder in Shein.
The partnership between Shein and Forever 21 deepened last week, when the companies launched a co-branded line.
Editor’s note: This story has been updated to reflect Shein’s response.
