Shein makes a deal with Frasers Group
By Laura Enfield | 30th October 2023
Fast fashion giant Shein is buying the Missguided brand name from Frasers Group, reports the BBC.
British company Frasers announced it was selling the business a little more than a year after it rescued it from administration in a £20million deal.
Chinese firm Shein is purchasing Missguided's intellectual property and trademarks for an undisclosed sum.
Donald Tang, Shein executive chairman, said: "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."
Shein, which is headquartered in Singapore, is reportedly doubling down on the UK market as it battles competition from Pinduoduo's Tem.
The rival ecommerce platform has replicated Shein's model of shipping cheap goods from manufacturers in China to consumers in the west.
Robin Zhu, analyst at Bernstein, told The Financial Times Shein was "buying growth" during a "do-something moment" for the company.
He added: "Shein's growth is being impacted by Temu in the US. Temu has only existed for just over a year but managed to match Shein's scale in the US."
Frasers is retaining Missguided's real estate and employees, both of which "have now been integrated into Frasers' fashion division".
Michael Murray, the chief executive of Frasers Group and the son-in-law of the firm's founder Mike Ashley, said the company wanted to rationalise its business to focus on fewer brands.
It owns a huge and diverse number of retailers such as Sports Direct, Flannels, Jack Wills, Evans Cycles and sofa.com. It has also built stakes in the likes of Boohoo, where Frasers Group is the largest shareholder, as well as Asos.
Frasers has other fast-fashion, online brands such as I Saw It First and Missy Empire. Mr Murray said that the company had been in discussions with Shein about potential collaboration across both companies.
Missguided was founded in 2009 by Cheshire-born Nitin Passi and on its site declares that "babe power is at the heart of our brand" and "we believe in championing young talent and real women".
The business fell into administration in May 2022 after suffering from supply chain issues, rising freight costs and increasing competition from rivals.
Copyright 2023 Moose Partnership Ltd. All rights reserved. Reproduction of any content is strictly forbidden without prior permission.