HE chinese giant Shein is shopping. HE exponential growth between ultra low price fashion brand This transformation is taking place on an international scale and is also reflected in the acquisition of Western companies. This Monday, the acquisition of Missguided, owned by the Frasers Group, was announced in the UK. No amount was disclosed. Experts warn of the importance of this internationalization strategy, which looks set to strengthen future expansion in the face of potential protectionism and the threat of new competition. Frasers will retain the employees and stores of the brand that will be incorporated into the group, while Shein will leave the door open to the growth of new operations.
SheinOriginating in China but currently based in Singapore, it has intensified its commitment to the British market to face competition from Temu from the Pinduoduo group, an e-commerce platform that copies Shein’s model of selling cheap products from Chinese manufacturers to Western consumers. Temu achieved a share similar to Shein’s in the US in just one year.
Shein’s bills are around $23,000 million. In practice, it sells twice as much online as Inditex but invoices half as much. It is an idea about your capacity and potential. And this trend tends to consolidate. Major fashion brands classify Shein more among technology companies than fashion or textile companies, but this does not spoil the clear competition they have in many product groups, especially party dresses or swimwear, where Shein prevails.
“This collaboration marks the beginning of a new partnership format for Shein as part of our unwavering commitment to meeting customer needs,” Shein CEO Donald Tang said in a statement. “Shein aims to revitalize the Missguided brand, leverage its brand personality and drive its global growth through our on-demand manufacturing model, e-commerce expertise and global reach.”
Rethinking strategies
Despite the exaggerated statements of the Shein chairman, the reality is that exponential growth has forced companies in the fashion industry to rethink strategies and commercial positioning. Companies born around the concept of ‘fast fashion‘ have evolved towards higher quality and price levels in recent years to distance themselves from Chinese fashion manufacturers with ultra-low prices and those with high-end logistics technologies. Shein has reinvented the fashion industry’s traditional production model through a rapid replenishment system and ultra-short runs that adapt quickly thanks to the information it receives in real time for on-demand production. Thanks to its decision centers being located next to the factories, it can change designs much faster than European companies such as Inditex, Mango, and H&M.
As an independent brand, Missguided products and collections will be available to Shein’s 150 million global users through its website as well as at Missguided.com.
Shein also recently announced the formation of a ‘joint venture’. forever 21A fast fashion brand that is very popular among Generation Z customers and aims to expand its presence in physical stores. Sequoia Capital and General Atlantic are some of the groups supporting Shein in the operation. Forever 21 is available in more than 572 locations worldwide and online. Earlier this month, SHEIN held its first Forever 21 pop-up at the Ontario Mills mall in California with more than 7,000 guests.
Brands, brands, brands
forever 21 It has a portfolio of more than 50 iconic and world-famous lifestyle, entertainment and media brands. Headquartered in New York City with offices worldwide, Authentic (the official owner of Forever 21) connects brands with a global network of operators, distributors and retailers. Its brands generate more than $29 billion in annual retail sales worldwide and have an extensive retail presence in 150 countries, including more than 12,800 freestanding and shop-in-shops and 360,000 points of sale.
Authentic’s brand portfolio includes Marilyn Monroe®, Elvis Presley®, Muhammad Ali®, Shaquille O’Neal®, David Beckham®, Dr. J®, Greg Norman®, Neil Lane®, Thalia®, Sports Illustrated®, Reebok ®, Brooks Brothers®, Barneys New York®, Judith Leiber®, Ted Baker®, Hunter®, Vince®, Hervé Léger®, Hickey Freeman ®, Frye®, Nautica®, Juicy Couture®, Vince Camuto®, Lucky Brand®, Aéropostale ® , Forever 21®, Nine West®, Rockport®, Eddie Bauer®, Boardriders®, Quiksilver®, Billabong®, Roxy®, DC Shoes®, RVCA®, Element®, VonZipper®, Honolua®, Spyder®, Volcom® , Shark®, Tretorn®, Prince®, Airwalk®, Izod®, Jones New York®, Van Heusen®, Hart Schaffner Marx® , Arrow® and Thomasville®.