China's online fashion company that made Zara, H&M and Amazon change their strategy has accused its biggest home rival Temu of …
Shein , one of China’s biggest fast-fashion platforms, has accused its home rival Temu of copyright infringement “on an industrial scale,” reports Reuters. Shein has filed a lawsuit against Temu in London High Court, alleging that it used thousands of its photos to advertise copies of Shein's own-brand clothing on its website, to "piggy-back" on a more established competitor. Temu, as per the report, has filed a counter claim stating that Shein is using the lawsuit to stifle competition. The London trial, expected to last two-weeks, comes amid intensifying regulatory scrutiny of Chinese fash-fashion companies that have become a headache for Zara, H&M and Amazon, forcing these global retailers to change their strategy.
“This was an attempt to steal a march on an existing participant in the market and Temu has sought to obtain, we say, an unfair advantage,” Shein's lawyer Benet Brandreth said as quoted by the news agency.
Temu denies allegations, files counterclaim
Temu has counter-claimed and is reportedly seeking damages after it had to remove thousands of product listings when Shein obtained an injunction. The fast-fashion brand has also alleged that Shein broke competition law by tying fast-fashion suppliers to exclusive agreements. That part of the case is due to go to trial next year.
China’s online fashion companies create pressure on Zara, H&M
JD.com along with Shein and Temu are causing significant competitive pressure for Zara and H&M, particularly in terms of fast fashion and low-cost alternatives. Inditex, the parent company of Zara, announced strategic measures to counter their growing influence like expanding the Lefties that reportedly sells jeans priced as low as under 20 euros and dresses and handbags under 10 euros.
Amazon’s plans to rival Temu, Shein
Similarly, Amazon has announced low-cost stores to compete with discount websites such as Temu and Shein. According to reports, these low-cost stores will offer severe price caps on what merchants can charge for their products. The e-tailer is reportedly shipping orders to US customers directly from a facility in Guangdong, China.
“This was an attempt to steal a march on an existing participant in the market and Temu has sought to obtain, we say, an unfair advantage,” Shein's lawyer Benet Brandreth said as quoted by the news agency.
Temu denies allegations, files counterclaim
Temu has counter-claimed and is reportedly seeking damages after it had to remove thousands of product listings when Shein obtained an injunction. The fast-fashion brand has also alleged that Shein broke competition law by tying fast-fashion suppliers to exclusive agreements. That part of the case is due to go to trial next year.
China’s online fashion companies create pressure on Zara, H&M
JD.com along with Shein and Temu are causing significant competitive pressure for Zara and H&M, particularly in terms of fast fashion and low-cost alternatives. Inditex, the parent company of Zara, announced strategic measures to counter their growing influence like expanding the Lefties that reportedly sells jeans priced as low as under 20 euros and dresses and handbags under 10 euros.
Amazon’s plans to rival Temu, Shein
Similarly, Amazon has announced low-cost stores to compete with discount websites such as Temu and Shein. According to reports, these low-cost stores will offer severe price caps on what merchants can charge for their products. The e-tailer is reportedly shipping orders to US customers directly from a facility in Guangdong, China.
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