Budget ecommerce platforms Temu and Shein have both asked for the lawsuits they filed against one another during the past twelve months to be dropped, according to recent reports.
The move ushers in a legal ceasefire between the two warring brands, but it’s unclear at present as to why they pushed for the cases to be dismissed. Neither company has provided an explanation for the seemingly coordinated decision, and it seems no settlements have been paid.
Why Have Temu and Shein Been Fighting?
Both online retailers have filed wholly separate legal against one another, with Temu filing in Boston in July of this year and Shein filing in Chicago in December 2022.
According to Reuters, Shein alleges that Temu paid social media influencers to badmouth the company and also created “imposter” accounts to push their app, tricking consumers into thinking that Shein and Temu are the same brand.
Temu, on the other hand, accused Shein of breaking antitrust laws by making manufacturers sign “loyalty oaths” to stop them from doing business with Temu. Shein responded at the time, saying the lawsuit was “without merit”.
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Who Owns Temu and Shein, and What Are They Worth?
Temu is owned by PDD Holdings, a Chinese company founded by Colin Huang in 2015. Huang was recently listed as China’s third-richest man, with a net worth of $37.2 billion.
PDD Holdings also owns Pinduoduo, another online retailer that focuses on the agricultural industry. Its market cap is around $141.96 billion.
Shein was founded back in 2008 in China, but the company is now headquartered in Singapore. It now has over 10,000 employees.
It was created and is still primarily owned by Chris Xu – although very little is known about the now-billionaire, who is considered rather illusive when compared to the celebrity of Alibaba’s Jack Ma and Tencent’s Pony Ma.
In 2022, Shein was said to be worth around $100 billion – but its market cap is now around $64 billion.
Temu and Shein: Are They Worth it?
Temu and Shein both offer clothes at astonishingly low prices – and naturally, the more difficult the economic climate, the more people are going to be looking for cheap deals. Those feeling the pinch are more than prepared to broaden their shopping horizons.
For many right now, western retailers like Amazon just don’t cut it – and when they’re hiking their premium service subscriptions in some territories, the average shopper needs very little motivation to look elsewhere.
However, if you’re shopping on a site like Temu or Wish, make sure to read through ample reviews of the products you’re purchasing- just like you would on Amazon. However, although Temu is a legitimate website, the quality of some products has been criticized online. So, it’s important to keep your wits about you when ordering, particularly if you’re purchasing cosmetics or kitchen items.
