Will competitors Shein and Temu bury the hatchet?

Will the various legal disputes between Chinese competitors Shein and Temu come to an end? Both parties are said to have filed documents to withdraw the lawsuits, reports the Reuters news agency.

However, the documents do not indicate why the decision was made to drop the lawsuits. The companies have also not yet responded to a request for comment from Reuters.

In recent months, legal battles between Shein and Temu have gone back and forth. Shein accused Temu of, among other things, copying product images and providing misleading information. Temu initiated its own lawsuit because Shein allegedly used its market size to force clothing manufacturers not to work with Temu.

Shein and Temu both have a similar business model. They sell ultra-fast fashion at extremely low prices. Shein has been using this model for several years, while Temu only launched in late 2022 but is quickly gaining traction.

This translated article previously appeared on FashionUnited.nl

ttn-12