The company looks to expand its market share and global reach ahead of a rumored U.S. initial public offering.
Chinese-founded fast-fashion retailer Shein acquired British online fashion brand Missguided from Frasers Group Plc, as the Singapore-based fashion giant continues to expand overseas.
Under the deal, Shein and Missguided’s founder Nitin Passi have formed a joint venture to manage the brand and access its intellectual property under a licensing agreement. Shein will also manufacture Missguided’s products through its on-demand production model, and sell on both companies’ websites, Shein said in a statement.
Shein’s acquisition of Missguided comes as the company looks to expand its marketplace model and offer a broader range of products to its 150 million customers. The deal will allow Shein to grow its market share and deepen its global penetration.
Missguided’s assortment is similar to lines carried by its new parent company because the brand is focused on the latest trends and skews lower in price. Even so, its products can be more expensive than Shein’s, and could attract a different demographic.
Last week, Shein announced plans to launch a co-branded clothing line with former rival Forever 21 after the two retailers partnered up in a joint venture earlier this year. Shein also began selling its clothes in Forever 21′s stores.