Shein and Mike Ashley's Competition to Boohoo and ASOS20 Sep 2023 17:59
Scary stuff for Boohoo and ASOS - the thinking is now Mike Ashley and Shein will get together to rund won Boohoo and ASOS even more. Their thinking is Mike Ashley has changed his strategy towards Boohoo and ASOS - Shore Capital- See below:-
"Shore Capital said that the deal could result in a "strategic partnership" between Shein and Frasers, given Shein's recent investment in SPARC Group, which operates high street name Forever 21.
"As part of its deal with Forever 21, Shein is considering providing customer services like returns at Forever 21’s physical locations. A similar arrangement could be made with Frasers' stores, offering customers more flexibility and thus enhancing customer experience," the broker said.
"Given Frasers' strong retail network in the UK, the company could serve as a distribution hub for Shein, reducing shipping times and costs for the latter’s UK customers.Partnering with Frasers could offer Shein a more mature and possibly more affluent customer base, while Frasers could gain access to Shein's younger demographic."
Meanwhile, Shore Capital suggested that Frasers could stand to benefit by listing stock as a third-party retailer on Shein's platform, which would open up 120 million further users across the globe.
"A potential partnership with global online retail player Shein could represent a transformational milestone for Frasers, which is already undergoing a significant strategic elevation and implementation of its credit offerings."