Online fashion retailer Boohoo has acquired women’s pureplay fashion brand MissPap in a move expected to provide the group with another vehicle to drive rapid growth.
In a statement, the group – which includes its namesake brand, PrettyLittleThing and Nasty Gal – describes MissPap as a “fashion brand with a strong visual identity, having amassed a core UK social following.”
Boohoo group CEO, John Lyttle, adds: “MissPap is a brand with great potential which can leverage the group’s expertise. This acquisition further strengthens our multi-brand platform, representing an exciting opportunity to accelerate our offering to our ever-growing range of customers globally.”
Brand differentiation is key
Sofie Willmott, senior retail analyst at GlobalData, notes the acquisition could mirror that of PrettyLittleThing, which is set to leapfrog the Boohoo brand in terms of market share in the UK in 2019.
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However, clear differentiation is essential to ensure all of the group’s brands have a place in the highly competitive young fashion market, she warns.
“Given the troubles at clothing players like New Look and Arcadia brands including Topshop and Miss Selfridge, which are struggling to convince consumers to buy, it is vital that young fashion brands offer shoppers a unique proposition in order to appeal. Both boohoo.com and PrettyLittleThing have carved out a strong reputation for striking, going-out clothing so there is an opportunity for Misspap to become the group’s destination for casualwear, stealing share from young fashion specialists that are failing to entice shoppers.”
In January, Boohoo upped its full-year revenue guidance once again on the back of strong growth across all brands and regions in the last four months of last year.
The retailer reported group revenue growth of 44% in the period ended 31 December and now expects revenue growth for the financial year to 28 February 2019 to be 43% to 45%, ahead of previous guidance of 38% to 43%.