NOVEMBERASIA BUSINESS OUTLOOK8China-based fast fashion retailer Shein has bought the Missguided brand from Mike Ashley's Frasers Group, the e-commerce giant and its first acquisition of a British brand. Frasers said on October 30 that Shein will acquire Missguided's intellectual property rights and trademarks, while Frasers will retain its properties and staff, which are now integrated into Frasers fashion department.Financial details of the deal were not disclosed, but Frasers said the deal allowed " fascinating interlocutors" about possible collaboration opportunities with Shein in his brand portfolio. Frasers, formerly Sports Direct, bought Missguided out of administration in June 2022 for £20 million ($24.2 million)."The move is particularly notable as it marks Shein's first acquisition of a British brand, which fits well with its focus on the UK as one of its fastest-growing markets," said Eleonora Dani, an analyst at Shore Capital.It brings the Missguided brand to Sheinand's online platform, which serves around 150 million users.Frasers also owns "I Saw It First" and "Missy Empire" women's and online fashion brands. Frasers chief executive Michael Murray said keeping Frasers' combined fashion teams and rationalizing its portfolio to focus on fewer brands in the region made sense in the current climate."We are also excited about continued discussions about working with Frasers Group and Shein," he said. India's e-commerce market is poised for significant growth, expected to grow from $59 billion in 2022 to around $300 billion by 2030, according to Redseer's India D2C report. This increase is expected to be due to mass consumers - everyday people who increasingly rely on e-commerce platforms to fulfill their various needs, which may be due to factors such as affordability, easy availability and a wider range of products.The report highlights several key dynamics contributing to this upward trend. One is the evolution of the e-commerce category mix, where lower average selling prices (ASP) command a higher percentage of gross merchandise value (GMV). Another driving factor is the rapid adoption of online shopping in Tier 2 and smaller cities. Combined with a growing consumer base and advanced third-party logistics (3PL) services, these factors will significantly increase shipping volumes.Interestingly, shipment growth is expected to outpace GMV growth. According to the report, this trend highlights the need for strong logistics and supply chain management to meet growing demand, especially in small cities.On the logistics front, the report predicts a 23 percent drop in shipping costs for 3PL companies from 60 per shipment in 2023 to an estimated 47 per shipment by 2030. This downward trend in costs is due to aggregate demand in small towns. and essential policy adjustments that facilitate more efficient and cost-effective operations. Despite these optimistic forecasts, the 3PL sector faces some challenges, including securing shipments, resolving weighted disputes and improving returns processes and overall accountability. NEWSROOMSHEIN PURCHASES MISSGUIDED FROM FRASERS GROUPINDIAN E-COMMERCE MARKET PROJECTED TO BE WORTH $300B IN 2030
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