30 October 2023 , 08:04
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Chinese online fashion brand Shein is buying the Missguided brand name from Frasers Group for an undisclosed sum.
The deal includes the intellectual property and trademarks of Missguided - however, Frasers will keep its staff and real estate. Missguided products will be made available to buy through Shein sites, as well as on Missguided.com.
It comes after Frasers, which is owned by business tycoon Mike Ashley, bought Missguided out of administration last June for £20million. Missguided was founded in 2009 by Nitin Passi and once thrived off rising demand for online fashion. However, the company was hit hard by rising costs and increased competition from cheaper brands like Shein.
Michael Murray, CEO of Frasers Group, said: "With I Saw it First and Missy Empire, we now have a foothold in women's digital-first fashion. Retaining the combined Frasers fashion teams whilst rationalising our portfolio in this space to focus on fewer brands makes a lot of sense in the current climate. We are also excited about the ongoing discussions around further collaboration between Frasers Group and Shein.“
Shein executive chairman Donald Tang said: "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. 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."
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Shein was founded in China by entrepreneur Chris Xu in October 2008, although it is now based in Singapore, and currently ships to 150 countries worldwide. Shein was once valued at $100billion but a more recent funding round this year valued it at $66billion.
Earlier this year, Shein announced it will open 30 pop-up shops to rival the likes of Primark on the high street. The temporary stores opened across the entire EMEA (Europe, the Middle East and Africa) region.
Shoppers normally have to rely on pictures and reviews online before they purchase any clothes from Shein, as it doesn't have permanent physical stores. It comes after the company opened a new EMEA headquarters in Dublin, creating 30 jobs in the process.