Fast Fashion War: Shein and Temu Engaged in Heated US Legal Battle

Chinese electronics retailer Temu has taken its legal battle with rival Shein, a dominant player in the fast-fashion market, to the next level. Temu has recently filed a lawsuit, alleging that Shein violated US antitrust laws in its dealings with clothing manufacturers.

In the lawsuit filed in Massachusetts court, Temu explicitly accuses Shein, a company valued at an impressive $66 billion that entered the US market in 2017, of leveraging its market power to coerce manufacturers. Specifically, Shein is alleged to have forced manufacturers to sign an agreement pledging not to do business with Temu.

According to Temu, this alleged coercion has led "8,338 independent garment manufacturers" in China to sign exclusive agreements, effectively blocking American consumers' access to direct price competition. Consequently, Temu claims that this has resulted in a significant drop in their fashion sales.

Temu asserts that the US market is the primary battleground for this legal conflict, and Shein's actions are perceived as part of a complex and anti-competitive scheme intended to hinder Temu's business growth.

"The US market is the main stage of this battle," Temu stated, adding that rival Shein "was engaged in a complex and anti-competitive scheme to hinder Temu's business."

In response to the allegations, a spokeswoman for Shein told CNN, "believes these lawsuits are baseless and will vigorously defend itself."

Since its US launch in 2017, Shein has rapidly emerged as the most popular ultrafast fashion brand in the country, attracting customers with its trendy designs and exceptionally low prices, surpassing even established fast fashion giants like H&M and Zara.

Meanwhile, Temu, a subsidiary of Chinese e-commerce giant Pinduoduo, made its debut in the US market in 2022 and quickly became one of the most downloaded apps. It achieved this through its offering of low-priced products and enticing incentives for customers who refer others to download the app.

Both companies share Chinese origins and have achieved remarkable success as online fast fashion retailers, offering affordable designs that cater to the latest trends.

Before this latest lawsuit, Shein had already sued Temu in December 2022, accusing the company of mobilizing influencers on social media to "denigrate" Shein's brand reputation.