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.”