SHEIN Files Lawsuit Against Chinese App Rival Temu — Retail Boss
SHEIN has filed a lawsuit against Temu in U.S. federal court accusing the Chinese app rival of paying social media influencers to make false statements against SHEIN to promote shoppers to switch to using Temu. In the lawsuit, SHEIN is hoping to block Temu from using the SHEIN name in marketing, as they are intentionally damaging the apps reputation. Temu has requested that the case be dropped in court.
If Temu loses, Temu might have to change what has been a crucial marketing approach up until that point. SHEIN wants to prevent Temu from using its name in marketing and wants compensation for any sales that it can prove were the result of dishonest or unfair marketing.
In a complaint filed in December against Temu in the Northern District of Illinois, SHEIN claims that Temu paid social media influencers to make false remarks against the fast-fashion shop. In addition, the lawsuit states that “Temu has also attempted to impersonate the SHEIN brand and trick consumers into believing Temu is associated with that brand.” Accusing the rival of creating fake SHEIN accounts including the now-deleted @SHEIN_DC, @SHEIN_USA_, and @SHEIN_NYC pages with links leading to Temu.
However, SHEIN itself has faced multiple copyright infringement claims since inception. SHEIN has been sued by dozens of independent fashion designers, artists and retailers including Nike NKE.N, Deckers’ DECK.N UGG brand, Oakley and Dolls Kill, alleging stolen designs.
So what does Temu have over SHEIN for the overnight rise in popularity? Temu provides customers with better quality products and more individualised options in comparison to SHEIN. In addition to its quality assurance, Temu also offers a unique shopping experience. Customers can customize their shopping experience by liking or disliking items, and Temu’s algorithm will curate content based on the items they prefer. Customers can use its user interface to filter products based on criteria such as style, size, colour, fabric, and fit. Also, shoppers may compare identical products side by side on the website, which facilitates decision-making.
@wykeja they ain’t failed me YET. it’s like aliexpress & shein mixed in one 😩 #temu #fyp ♬ i have your competition on the phone . — mya 🙂
As a bonus, Temu provides free returns and free shipping on orders over a specific threshold, which SHEIN does not. Temu has a loyalty programme as well, which awards members with points for each transaction they make. Temu offers a speedier delivery than SHEIN, which is another benefit. Lastly, Temu has been successfully entering the US market with aggressive marketing that primarily targets youthful users who are more likely to be drawn to the platform’s features.
@daniellecohn Super low price and high quality！！To be honest，everyone should have temu ！#temumethod #temu #temuhaul #viral #temustyle #temuspringsale ♬ original sound — T Massey637
It seems as though as Temu continues to grow their social media following and shopping app downloads, we may see more lawsuits arise against the app.
All in all, Temu is becoming increasingly popular in the US market and is slowly outshining its closest competitor, SHEIN. Its user experience, range of products and commitment to quality, have all been instrumental in its success. Going forward, Temu will continue to gain an edge in the US market as it strives to offer customers an engaging and personalised shopping experience.
RETAILBOSS provides well-curated, research-driven news and insights into the trends and business aspects of the rapidly evolving retail industry.
Originally published at https://retailboss.co on March 9, 2023.
