Temu vs Shein: The Catfight Shaking Up the World of Ultra-Fast Fashion

Chinese e-commerce rivals, Temu and Shein, are involved in a full-blown legal catfight over fast-fashion retail space in the US. Let's grab some popcorn, shall we?

Last week, the newcomer Temu (known for its relentless social ads) slapped Shein (your Gen-Z sibling's favorite shopping app) with an antitrust lawsuit. Looks like the claws are out!

The drama began in December, when Shein accused Temu of infringement. From stealing their designs to posing as "Shein" in search ads, Shein claimed that Temu crossed the line. Even in the world of Twitter, there were alleged "Shein" accounts that led followers right to Temu's doorstep. The verdict's still out on this one.

Now, Temu is clapping back with its own allegations. According to the legal papers, Shein is playing dirty, forcing over 8,000 manufacturers to swear loyalty and sign exclusivity agreements, thus blocking them from teaming up with Temu. Temu also claims Shein is using made-up copyright complaints to get them to remove cheaper products.

In a statement to MIT Technology Review, Temu stated, "We have no choice but to take legal measures to defend our rights, our merchants' rights, and our consumers' rights to cheap and chic products." Shein, on the other hand, told the same publication, "This lawsuit is without merit and we will defend ourselves vigorously."

But wait, there's more to this cat-and-mouse game. Both companies heavily depend on a large network of low-cost Chinese suppliers. So, what happens if one platform, especially the top dog (or should I say, top cat?), compels suppliers to choose between the two? It's a recipe for a corporate catastrophe.

Not to mention, Temu isn't a saint in this tale. It has faced accusations of forcing suppliers to accept rock-bottom prices or dropping them cold when a cheaper supplier is found. The pot calling the kettle black, perhaps?

Historically, exclusivity deals were common in Chinese tech battles until a 2021 government ban. But given the scrutiny from Washington, airing such dirty laundry in the US might backfire. After all, if they continue slinging mud at each other, they could end up becoming nothing more than targets for regulators.

As we wait to see who lands on their feet, what's your take on this ultra-fast fashion feud? Send your thoughts to firm@edwhitelaw.com.