“Mafia intimidation”, Temu's heavy accusation against his rival Shein. It's war between the two Chinese e-commerce giants
Chinese e-commerce giants are at war with each other. Temua low-cost online store that is spreading its popularity like wildfire, has started a lawsuit against its rival Shein for copyright issues and “mafia-style intimidation of suppliers.”
In documents filed with US authorities on Wednesday, the company WhaleCooperating as Temu in the United States, accused the brand of “fast fashion” Shein to force suppliers who also operate with Temu to abandon the platform, taking further actions to hinder the company's growth in the United States.
A spokesperson for Temuas the Sun 24 Hourssaid, “We sued Shein because his actions have recently escalated. They started harassing the providers, forcibly demanding their phones, stealing our accounts, passwords and company secrets, all the while forcing merchants to leave our platform. Their actions are excessive; we were left with no choice but to report them.”
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But it is not the first time that clashes have occurred between the two Chinese giants. In December last year, Shein had sued Temu For infringement of intellectual propertywhile Temu accused Shein in July of threatening and coercing producers into exclusivity deals.
Both companies are fierce competitors in the large e-commerce market. Temu specializes in the sale of “made in China” products, from fashion to household items, at affordable prices, targeting international consumers. A sort, albeit rather distant, of Amazon essentially. Likewise, Shein relies on contract manufacturers, mostly in China, to design, produce and ship its products at low cost.
The document filed on Wednesday states that despite the different business models, Shein he saw Temu as its main threat since the launch of Temu in the United States in September 2022, becoming the target of malicious and illegal actions to hinder its success.
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