Case Study on Missguided


February 5, 2016


Missguided Fashion was founded in 2008 by Nitin Passi at the height of the financial recession. While this might seem like a poor time to launch an online retail business, it turned out to be perfect timing. Passi and his company: Missguided fashion, have the stated goal of selling low-cost items to fashion conscious consumers. So far their business strategy has proven very successful, and they’re now an $80 million dollar company. But the question is, how did Missguided fashion get its start?

Getting Started with No Business Roots

Passi is open about the fact that previous to Missguided fashion, he actually had very little business experience. While he did work for his father for several years in the fashion industry, he readily admits that it was in a different niche. He was dealing with higher end clients and a longer manufacturing process. As we dig deeper into what has made Missguided such a successful company, we’ll see that Passi has effectively taken those traditional ideas about the world of fashion, and turned them on their head.


Why He Chose to Market to a Younger Crowd

When Passi founded Missguided in 2008, he saw an opportunity to corner the youth market. He looked at the more developed fashion market and realized that most of the large brands were catering to an older crowd who would be less likely to buy fashion products online. That’s why Passi decided to focus exclusively on selling to a younger, more tech savvy crowd. So in 2008 Passi secured a 50,000 pound loan from his father, bought the Missguided domain name, and the rest is history.

Failure in Germany

Along the way though, not everything went smoothly. After twelve months of running Missguided, Passi was beginning to turn a reasonable profit and he felt that expanding into other international markets may be a smart move. Unfortunately this proved to be an ill advised decision. He invested heavily in advertising in a German magazine in hopes of the brand taking off internationally. This turned out to be a blunder, and the decision proved to be very unprofitable. This was an expensive lesson to learn for Passi, and it’s one that he was careful to not repeat again. While Missguided has plans to expand its reaches into other foreign markets, Passi claims that these attempts will be far more thought out this time, and much less spontaneous.


Fast Turnaround is the Key to Success

So if bringing the brand to an international market was not what was destined to make Missguided the fashion behemoth that it is today, what was the key to success? As it turns out, the largest reason for Missguided’s success is their incredibly quick turnaround time. Passi has stated that in some instances, Missguided can have a turn around time as low as three days. That is, if a celebrity wears a hot item and it instantly becomes in demand, Missguided fashion can have a similar product on the shelves within three days. While this is the fastest turn around time possible, Passi has stated that most products take no more than two weeks to appear on the shelves.

Another interesting fact which sets Missguided fashion apart from the competition is their intense focus on continually updating their catalogue. They update their online catalogue every single day, which keeps people coming back for more on a regular basis. In fact, Passi has even gone so far as to say that if possible, he would have the website updated with new products every single hour. While this might not be possible, it’s this intense drive to have the most up-to-date catalogue possible that allows Missguided fashion to remain at the top of the industry.

The Future of Missguided Fashion

While Missguided fashion is doing very well for itself right now, it still faces competition from other online retailers like Zara. In order to stay relevant it’s going to need to continue to focus on its core focus of creating fashion brands on the fly and getting them up onto its online store as quickly as possible. if Missguided can do that, there is no reason that Nitin Passi can’t grow Missguided fashion into a powerhouse that is a household name across the world in the coming years.

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