Shein, Temu Fight Over U.S. Market For $10 Dresses

Online fast-fashion retailer Shein and its newer rival Temu are in a race to win shoppers' attention for their inexpensive China-made goods, Arriana McLymore and Casey Hall reported for Reuters.

Photo Insert: The war between Shein and Temu is playing out not only on social media but also in a US court.

The war between them is playing out not only on social media but also in a US court. The legal skirmish is important for US consumers and rival retailers because it shows how online retailers with vendors in China need to navigate US intellectual property protections.

In US federal court, Shein has accused Temu of contracting social-media influencers to make "false and deceptive statements" against Shein in their promotions of Temu.com.

Shein produces clothing in China to sell online in the US, Europe and Asia, offering items such as $10 dresses and $5 tops. Shein, founded in China, relies on drop-shipping directly from its network of China-based suppliers.

A Temu.com spokesperson said the company "strongly and categorically rejects all allegations and is vigorously defending its rights." Shein itself has faced lawsuits alleging copyright infringement.

Under the name Zoetop Business, it was sued by dozens of independent artists and retailers including Nike, Deckers' UGG brand, Luxottica Group's Oakley shades and online retailer Dolls Kill, alleging stolen designs.

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