Following today’s news that Shein has acquired Missguided from Frasers Group: Alice Price, apparel analyst at GlobalData, a leading data and analytics company, offers her view: “Shein’s acquisition of Missguided is its first purchase of a UK brand, and will enable it to further assert its growing influence over the UK apparel market. The ultra-fast fashion giant has seen its popularity skyrocket in recent years, with its UK apparel market share anticipated to jump 0.5ppts to 2.2% in 2023, placing it in the top 10 for the first time. This has been driven by its unrivalled low price points and ability to churn out the latest trends, making it the go-to destination for fashion-conscious Gen Z shoppers. Shein’s superior financial resources and fashion expertise should allow it to steer Missguided back to relevance by ensuring its ranges reflect the latest trends and strengthening its digital proposition, through enhanced navigation and product filters, to offer shoppers greater convenience.
“With Frasers Group’s CEO Michael Murray pointing to the potential for “further collaborations” between the two businesses in the future, it suggests that Shein may strike a similar deal with Frasers Group as it did with Forever 21 in the US in August 2023. As well as expanding Shein’s offline reach by potentially stocking its ranges in Frasers stores across the UK, it may also offer Frasers Group the opportunity to profit from Shein’s popularity as increased footfall from the lucrative Gen Z demographic will increase the visibility of its own ranges too.
“With Shein also often criticised for its subpar ethical standards, it is likely to be making deals with established local brands to bolster consumer perceptions. It is expected to continue making similar moves going forwards, with the purchase of struggling players at bargain prices barely making a dent on its prosperous balance sheet.”
Professor Vish Maheshwari, Professor of Marketing and Associate Dean Academic at Salford Business School, commented: “Brand takeovers and mergers are not new to the dynamic market we operate within, however, brand takeovers like this are certainly very interesting where Shein could potentially extend its market reach and depth, through Missguided’s existing consumer base.”
“Although, Missguided has found itself struggling, in recent times, due to increased competition and challenging logistical business environment, it still possesses relative brand identity which genuinely connects diverse segments, particularly among female consumers. It is fair to say that there has been a strong emotional attachment and trust built amongst Missguided’s loyal consumer base. This is a reflection where brand personality helps forge bonds with consumers to the extent that it becomes an integral part of their life story.”
“With Shein’s expertise and allyship into digital operation and market penetration, for Missguided, it could result into the growth of newer micro segments through product diversification and fast-paced customer service. On the other hand, it will be interesting to see how Shein works with Missguided in prolonging its distinct brand personality to assure continued customer interest, trust and deliver on building its brand strength, one that is for all of us to wait and see how it transpires following the recent takeover.”
