Fast fashion giant H&M, known for its controversial practices, has surprised many by taking legal action against Shein, another infamous fast fashion brand with a history of controversies. The lawsuit, filed in Hong Kong, alleges copyright infringement, and H&M claims that Shein has copied their design ideas.
H&M Presents Photographic Evidence of Design Copies
During the ongoing copyright infringement lawsuit, H&M presented photographic evidence of dozens of items, including swimwear and sweaters, to support their case against Shein. The first hearing took place on June 21, with the next one scheduled for July 31.
Shein’s Troubles with Lawsuits
Shein, founded in China in 2008 and now based in Singapore, quickly rose to prominence in the global fast-fashion market with attractively low-priced collections. However, it has faced numerous lawsuits. Attorneys representing artists Krista Perry and Larissa Martinez filed one lawsuit, citing RICO and accusing Shein of selling replicas of their intellectual property. They claim that Shein continues selling the infringing copies. They were asked to remove them, but they have not complied.
Legal Battles and Impact on Valuation
Shein has been involved in other legal battles, such as a lawsuit against Temu for alleged trademark infringement. 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.” Due to boycotts and legal challenges, Shein’s total valuation has decreased from 100 billion dollars to 66 billion dollars.
H&M- Price Strategy and Competition
Interestingly, just before filing the lawsuit, H&M seemed to adopt a strategy similar to Shein’s by significantly lowering its prices. H&M offers items as low as 1.70 dollars in the United States. The company aims to compete and attract customers with more competitive pricing. This move may be influenced by Shein’s success in the fast-fashion market. The legal battle between H&M and Shein has left the public torn about which side to support. It’s reminiscent of the Marvel Civil War, where both parties seem equally right and wrong.
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