Analysis: Who is etailer Missguided?

What is Missguided?

Missguided is an online young fashion retailer set up by Manchester-based entrepreneur Nitin Passi. The etailer, which employs over 300 people, sells trendy product at keen price points. It operates a fast fashion model bringing hundreds of new products to its site each week. It sells own brand product and, despite requests from retailers including fashion giant Asos, it has shunned wholesaling in favour of growing its own retail operation.

How is it performing?

The etailer is achieving 20% sales growth each month. Passi expects to unveil sales of £50m to £55m for its year to March 2013 which he predicts will grow to over £100m in its current financial year.

How has it come to prominence?

The retailer has embraced digital marketing and has invested heavily in search engine optimisation and pay-per-click services. However, Passi says that television advertising has been a major tool in building awareness in the UK. As well as its commercials, the retailer has also sponsored TV shows which attract its young target audience such as T4 Stars on Channel 4 last year.

It has also gained success through PR and celebrities including Nicole Scherzinger wearing its clothes, which Passi says are important to its young audience.

Passi also believes its service proposition has been critical to building its following. Missguided offers free standard delivery and free next day fulfilment for orders over £40. It offers next day courier for orders made up until 9pm but this is to be extended to 10pm imminently with Passi looking to push it out even further to 11pm soon.

What’s next for Missguided?

International expansion is the etailer’s focus for the year ahead. It soft launched in the US and Australia earlier this year and is to push the button on marketing in those regions. It is due to launch sites in Germany and France by August with a China site in the offing next year.

Passi believes its overseas business will account for 30% of its turnover in a year’s time and predicts like Asos it will soon be bigger internationally than it is in the UK. The etailer has set itself the ambitious target of hitting £1bn turnover in five years’ time.