What the TEMU trial against Shein means for buyers
This could have a real impact on Shein for which customers should prepare.
It is a confrontation of two electronic commerce titans. Temp , the rapidly growing online retailer brought an action against the fast fashion brand Shein, alleging that he orchestrated a "multiple faceted diet", including "mafia style intimidation" with the intention of 'interfere with Temu market growth , by court documents.
A few years ago recently, neither TEMU ni Shein were names of households in the United States, but the two companies were not considerably developed while consumers flocked to low-cost goods. Shein mainly sells clothing and accessories and also has fun in homemade and beauty products. TEMU, however, sells a little in a similar way to Amazon.
This is not the first time that TEMU, which officially operates as Whaleco, and Shein is head-to-head in court. According to Reuters, Shein brought an action against Tem In December 2022, accusing Temu of hiring influencers to describe Shein's articles in a misleading way. Temu retaliated in July this year with a trial claiming Shein Stole antitrust laws , according to CNN Business. The two companies abandoned their respective proceedings in October.
But on December 13, TEMU filed its last pursuit. Read the rest to find out more about what Shein is accused and what the last trial means for buyers.
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The trial accuses Shein of being a "village of Potemkin".
The latest batch of TEMU claims is long and extended, accusing Shein - described by TEMU in the pursuit as a "village of Potem" - of copyright, abuse of intellectual property, of embezzlement of secrets of 'Wives and anti -competitive business practices, among other charges. TEMU even accused Shein of having badly obtained and searched the digital records of merchants selling products on TEMU.
"We continued Shein because recently their Actions have increased "Said a spokesperson for Temu to CNBC.
In a statement to CNN, a shein representative has at the end: "We believe that this trial is baseless, and we vigorously . ""
The legal battle between Tem and Shein is undeniably juicy, but it could have real effects for buyers.
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You will probably see more TEMU ads.
Beyond the courtroom, Shein and Temu spent last year for the advertising space. TEMU began to operate in the United States in 2022, but failed to be important before its Super Bowl announcement in February 2023 featured the Splashy slogan "Shop Like A Billionaire". AE0FCC31AE342FD3A1346EBB1F342FCB
As noted in an analysis From modern retail sale, TEMU mentioned an upcoming advertisement of the Super Bowl in 2024 in its recent trial, a detail which received a buzz of publications reporting the trial. Some speculate that legal action could be a public relations strategy.
Although the company has refused to comment on its strategy with modern retail trade, Temu will certainly emerge from this costume with a higher profile, whatever the decision. It will be based on this with more traditional advertising methods: Cable reports that TEMU provides for triple its American advertising expenses In 2024 to $ 4.3 billion.
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Shein may have to interrupt popular functionality.
TEMU and Shein use promotional "games" to provide discounts to consumers. On each platform, you can run a wheel and get a bonus, for example, a discount on your purchase or certain products for free. TEMU has accused Shein of copyright violation for this functionality, as well as hiring employees from TEMU who have internal information on this subject.
If Shein loses the case, it may have to stop this practice. However, nothing will change for buyers until the American district district court - where Whaleco filed his complaint - makes a decision.
You can always buy in Shein (for now).
Throughout all the proceedings between these two companies, companies have mainly continued as usual for Shein and Temu. At the time of the press, the court did not issue a temporary injunction or any other judicial order which would limit Shein's ability to carry out business in the light of the recent pursuit of TEMU.
In the predictable future, it is sure that you will be able to continue to shop in Shein - and Temu, by the way.
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