The long-speculated deal has finally materialized: Frasers Group has officially transferred the digital fashion retailer Missguided to Shein, marking a strategic move. Frasers Group’s decision to divest the intellectual property of Missguided to Shein aligns with their disciplined brand management strategy, following their acquisition of the company in the summer of 2022.
Notably, this transaction doesn’t entail any workforce reductions. Frasers Group will maintain ownership of Missguided’s physical assets and workforce, which have seamlessly integrated into Frasers’ fashion division.
Frasers Group CEO, Michael Murray, expressed his perspective on the matter, stating, «With I Saw it First and Missy Empire under our umbrella, we’ve solidified our presence in the digital-first women’s fashion sector. Consolidating our fashion teams and streamlining our brand portfolio is a strategic decision, especially given the current business landscape. We’re also enthusiastic about ongoing discussions for potential collaborations between Frasers Group and Shein.»
Shein views this acquisition as a strategic move to meet evolving customer demands for diverse product offerings and an enhanced shopping experience. Alongside the acquisition, Shein has entered into a licensing agreement with Sumwon Studios, a joint venture involving Shein and Missguided’s founder, Nitin Passi.
Under this agreement, Missguided will be overseen through the joint venture, with products and collections being manufactured using Shein’s on-demand production model. These items will be available for purchase on Shein’s websites, as well as Missguided.com.
Shein’s Executive Chairman, Donald Tang, emphasized the significance of this joint venture, stating, «This partnership heralds a new era of collaboration, reflecting our steadfast commitment to meeting customer demands. Shein is committed to revitalizing the Missguided brand, capitalizing on its distinctive brand identity, and driving its global expansion.»