By CHENG Lu
Cross-border e-commerce platform Temu has filed a lawsuit against fast-fashion megastar Shein for violating US antitrust laws.
Temu accuses Shein of unfair competition, which infringed on Temu's rights and hindered the development of the fast-fashion market. In response, Shein stated that the accusations have no legal basis and the company will take appropriate action to defend itself.
Shein, founded in China, primarily targets markets overseas. Since its entry into the United States in 2017, it has quickly become a leader in cross-border e-commerce, with revenue close to that of the well-established fast fashion brand Zara. Currently, Shein is valued at US$66 billion (480 yuan) and is preparing for an IPO.
Temu was launched in the US in September last year, and in just two weeks became the top shopping app in the country. Temu's growth owes much to learning from Shein's experiences with a similar business model. Temu also spared no expense in hiring Shein employees. Temu HQ is just a stone's throw away from Shein's.
This is not the first time the two have clashed. Shein's claim against Temu for defamation is still making its way through the courts.
