Temu vs. Shein: Fierce Conflict Between Chinese Fast-Fashion Chains

After the Chinese fast-fashion retailer Shein was declared the most popular brand in the world last year, it became clear that no controversy could dethrone them as long as they sell – a lot of goods for little money. This formula was decided to be followed last year by another brand operating in America but also of Chinese origin. Temu, owned by the Chinese internet giant PPD Holdings, launched an assault on American and then global consumers.

Their shopping app is currently available in 47 countries, and they boast that by the end of this year, they aim for $18 billion in revenue, just four billion less than Shein. Although Temu does not only sell clothing but various consumer products at discount prices (competing with Amazon), Shein resents their rapid success and has begun to intimidate them using mafia-style methods. At least that is what Temu claims, which has decided to file a second lawsuit against its Chinese rival, further escalating the war that began shortly after they stepped into the market dominated by Shein.

Lawsuit Barrage

According to global media reports, Temu has sued Shein for ‘harassing, intimidating, and threatening mafia-style’ to prevent some Chinese suppliers from cooperating with Temu. According to CNN, Shein’s ‘mafia team’ even confiscated merchants’ mobile phones to obtain confidential information, and some were reportedly detained in their offices for hours. The lawsuit also states that Shein sought to illegally protect products sold on Temu’s webshop.

Shein representatives, on the other hand, stated in a press release that the lawsuit is baseless and announced that they would vigorously defend against these, as well as against a lawsuit filed in June by ‘younger’ Chinese competitors. In that lawsuit, it was stated that Shein violates antitrust laws by preventing Chinese clothing manufacturers from producing goods for competitors. However, according to Shein’s opinion, Temu also has a lot to answer for.

Namely, Shein has also filed a lawsuit against Temu, accusing them of asking influencers to criticize them on social media. A lot of lawsuits, right? Judging by the intensity of the attacks from both sides, it is unlikely that any player will soon declare a truce. The war for the hundreds of billions of dollars that consumers are willing to spend on cheap products can only be stopped by political bodies and organizations from the markets where the Chinese operate. The ethics of Shein’s and Temu’s business practices are questionable, and both companies are under investigation for unethical business practices and treatment of workers.