Why is H&M suing its fast fashion rival Shein?
Fast fashion giant H&M, notorious for its questionable practices, appears to have found a moral compass and is now taking legal action against another infamous fast fashion brand, Shein, known for similar controversies.
This unprecedented situation has left us, like you, feeling torn about which side to support - a bit like the Marvel Civil War, where both parties seem equally right and wrong.
The lawsuit
Hennes & Mauritz (H&M), a well-established retail company, has brought its fast-growing online competitor, Shein, to court in Hong Kong over alleged 'copyright infringement'.
Essentially, H&M claims that Shein has copied their design ideas, and they presented photographic evidence of dozens of items, ranging from swimwear to sweaters, to support their case.
The first hearing occurred on June 21, with the next scheduled for July 31.
Shein's troubles
Originating in China in 2008, Shein rapidly gained prominence in the global fast-fashion market, offering attractively low-priced collections. The company has since relocated its base to Singapore. However, Shein has faced numerous lawsuits in the US alone, and even in India, it was banned but now aims for a comeback.
On July 11, three attorneys representing artists Krista Perry and Larissa Martinez filed a complaint against Shein, citing RICO (Racketeer Influenced and Corrupt Organizations Act), and accusing Shein of knowingly selling replicas of their intellectual property despite being requested to remove the infringing copies.
Another legal battle ensued in December 2022 when Shein initiated a lawsuit against Temu, alleging infringement upon its "exclusive and valuable trademark," as reported by The Fashion Law. However, on July 14, Temu responded with a counter-lawsuit, accusing Shein of engaging in a "scheme of coerced exclusivity, threats, intimidation, and direct financial punishments."
The girls are fightinggggggg!
— Lakyn Thee Stylist (@OgLakyn) July 18, 2023
Shein has allegedly been coercing manufacturers to not work with Temu, while Temu has allegedly been paying influencers to criticize Shein. pic.twitter.com/bUB3jCR0ra
Valuation and pricing
As of last year, Shein's total valuation stood at an impressive 100 billion dollars, surpassing the combined valuations of Zara and H&M. However, due to significant boycotts and legal challenges, its value has declined to 66 billion dollars.
The girls are fightinggggggg!
— Lakyn Thee Stylist (@OgLakyn) July 18, 2023
Shein has allegedly been coercing manufacturers to not work with Temu, while Temu has allegedly been paying influencers to criticize Shein. pic.twitter.com/bUB3jCR0ra
Interestingly, just before filing the lawsuit, H&M seemed to adopt a strategy similar to Shein's by significantly lowering its prices.
They recently offered items for as low as 1.70 dollars (approximately 160 Indian Rupees) in the United States, signaling an attempt to compete and attract customers with more competitive pricing, possibly influenced by Shein's success in the fast-fashion market.
Whose side are you on?
The question remains, whose side are you on? Shein or H&M? Or do you believe both companies are equally guilty of copying designs and engaging in greenwashing? The decision is yours.
After byjus I'm waiting for the downfall of both H&M and Shein in this IP lawsuit which infact is a very funny irony.
— getouttahere (@patanahiyaaarr) July 26, 2023