Is Shein Building a Faster-Fashion Empire?
Shein Group wants a piece of Missguided, the recently bankrupt fast-fashion brand from the Frasers Group empire where split-leg jeans are on sale for 4 pounds ($4.96) and a pair of black Barely There stiletto sandals is going for 2 pounds ($2.48)—a far cry from the original 20-pound ($24.79) asking price.
For Michael Ashley’s Frasers Group, selling Missguided could help it recoup some of the 20 million pounds ($25.2 million) it paid for the cheap-and-chic label last summer, along with men’s brand Mennace, after founder and CEO Nitin Passi‘s departure.
More from Sourcing Journal
Shein is said to be in advanced talks for the low-cost label which asked suppliers for 80 percent discounts just one year ago.
Shein is interested in Missguided’s intellectual property and other valuable assets. This would mark its first play for a British brand, but not its first link-up with an established name.
Reports suggest that the RICO defendant is interested in pursuing a Sparc-style play for Missguided. The Christian Siriano collaborator recently inked a deal with Sparc Group—the Simon Property joint venture with Authentic Brands Group and operator of labels including Brooks Brothers, Aéropostale, Lucky Brand and Eddie Bauer. Under their arrangement, Shein and Sparc each took a minority equity stake in the other, while Shein will also pop up inside stores run by fellow fast-fashion player, Forever 21, a Sparc portfolio brand. A similar deal with Frasers would unlock distribution access to the UK market for Shein, and give the British retail giant more intel on young, digital shoppers.
Shein declined to comment. Sourcing Journal reached out to Frasers Group for comment.
Though Shein has played mum on whether or not it’s going public, it has made no secret of its global ambitions. The air cargo aficionado now runs eight international distribution centers after opening three last year in Poland, Italy and United Arab Emirates.
Plus, the $65 billion Temu rival‘s deal with Indian retail giant Reliance Retail gives it valuable exposure to that country’s enormous and growing consumer base.
Singapore-headquartered Shein has used popups as an “integral part” of its business model to allow consumers to see its clothing, accessories and other goods up close and in person. It’s hosted dozens in the U.S. alone, and plans at least 30 such global activations this year.
As Shein branches out, it’s taking its production prowess on the road, too. It’s investing $150 million to work with 2,000 Brazilian garment factories and create 100,00 jobs there over the next three years. Shein is said to be looking at other nearshoring opportunities that could bring it into Mexico. It has famously relied on manufacturing in China, where allegations of pennies-per-piece pay have dogged the accused Dr. Martens copycat.
