The two fast fashion retailers have continued their competitiveness with each other, especially when Temu recently sued Shein – accusing them of engaging in illegal practices and behavior. Both have sued each other in the past.
The suit claims that Shein has been involved in intimidation and threat campaigns, and forcing exclusive deals with clothing manufacturers to steal them away from Temu. While a previous suit from December accused the latter for using influencers to falsely represent Shein.
The two Chinese industries have been overtaking fashion giants, with Shein having more than Zara and H&M combined. Ever since Temu was launched, it saw immense growth in the United States – Shein has been onsight on competing with its new rival.
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Shein And Temu’s Heated Competition
Temu argues that Shein has been trying to come up with several ways to hinder the shop’s growth, citing that they allegedly force manufacturers to vow to never work with Temu by signing loyalty agreements.
Additionally, they mentioned that those who did choose to work with Temu, were punished with penalties – citing that some of their Chinese manufacturers might not have funding to seek advice and are unfamiliar with the US’ legal system.
In addition, they add that they’ve allegedly forced their manufacturers to give up their intellectual property to Shein. Temu also cites when they were falsely accused of copyright infringement – resulting in them having to withdraw several products.
Temu adds that these constant suits from its rival, Shein, have significantly damaged their business. They add that this onslaught has caused them to take this in legal matters to defend themselves.
Michael Felice mentions that it shows that both are a threat to each other, and expresses it’s unsurprising for them to act like this. Felice notes that with each suit, they’ve been trying to prove themselves by constantly devaluing each other.
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Source: CNN
