Frasers Group has announced that SHEIN has acquired the intellectual property and trademarks of Missguided. Frasers Group will retain Missguided’s real estate and staff, who have been added to Frasers’ fashion division.
The deal likely will enable collaboration between Frasers Group and SHEIN. SHEIN will likely now start manufacturing and selling Missguided goods. The deal enables Frasers Group to continue to divest fashion assets after reaching a leading position in digital fast fashion in the UK market with With I Saw it First and Missy Empire.
SHEIN now owns two fast fashion assets in developed e-commerce markets through investment or acquisitions. Forever 21 and Missguided enable them to access customers in markets without consumers buying a SHEIN item but generating revenues from these purchases. Forever 21 and Missguided’s owners, SPARC Group and Fraser Group, gain a strategic partnership with their biggest competitive threat, SHEIN, who potentially can also generate revenues for them versus the competition.
The question now becomes, how do these acquisitions help SHEIN when they eventually go public, or are these more strategic to ensure better relationships with important business markets for a Chinese company that has its fair share of controversy?