Nitin Passi Speaks to Drapers – Why Missguided lost £26 million
Want to find out more about Nitin Passi and why Missguided lost £26 million in 2018? We’ve taken some of the key parts from Nitin’s interview with Drapers magazine back in December to give you the full lowdown.
You can read the full article here.
If you’ve been watching Inside Missguided: Made in Manchester on Channel 4, you may have heard us refer back to a difficult year in 2018. Despite the struggles, we are now back, stronger and more disruptive than ever.
What happened at Missguided in 2018?
I had eight years of honeymoon, one year of hell, one year of reset, and now I’m really confident about the future.Nitin Passi for Drapers
You’ve probably noticed that we face a lot of competitors in this market, but that isn’t the big reason for Missguided’s £26 million loss. In the first eight years Missguided just grew like topsy, and the truth is, we got complacent and that meant, when things went awry, we didn’t notice quickly enough.
In our market – having the right stock matters – and the bottom line is we had too much of it – for a period we had our eye off the ball and stocked the wrong items and it was hard to shift them.
As Nitin said in his Drapers interview “We operate in fast fashion: we have to turn our stock in six weeks. We weren’t clearing stock as quickly as we should have, and as a result our customer was seeing poor stock online or we were regurgitating old stock in order to clear it.”
What’s more we focused on some of the wrong things – we opened up two retail stores which looked fantastic, but we’re an internet retailer and that meant we were distracted.
As soon as reality kicked in, Nitin and his board knew they needed to take action to turn the business around. Sadly, that meant a redundancy programme and almost all of our marketing spend was cut.
But we learned from our mistakes and, while our recovery has stretched over a couple of years, we’re now back on track, rebuilding and growing again.
We think we’re a better business for having to face into our terrible year. We’re more efficient, our turnaround time is quicker and our quality is higher. Most importantly, we’re more of a family than we’ve ever been – what doesn’t kill you, makes you stronger.
Missguided in 2020
Whilst 2018 may have been a difficult year for Missguided, 2019 and 2020 has seen us climb to the top of the ladder again.. We’ve launched huge collaborations with Stassie, Jordan Lipscombe, Sofia Richie and more. We’ve also embarked on epic campaigns including LoveThySelf, About Last Night, Missgided Ski and our latest one “Thanks, It’s Missguided”
Find out more on Inside Missguided
If you want to find out more about Nitin Passi, Missguided’s 26 million loss or, even better, our return to success, make sure you tune into Inside Missguided: Made in Manchester on Channel 4, Wednesday 10pm. Alternatively you can binge watch the whole series on ALL 4 now.