Global fashion brand UNIQLO sues SHEIN. UNIQLO has launched legal action against the online retailer, accusing it of copying the design of its Round Mini Shoulder Bag.
The UNIQLO bag was one of the brand’s top-selling products last year.
It retails for $24.90 in Australia. SHEIN sells a ‘dupe’ for $7.95.
Background
With over 2,400 stores globally, (including 36 in Australia) Japanese retailer UNIQLO’s parent company Fast Retailing reported $AU28.5 billion in revenue last year.
It attributed profit increases, in part, to strong sales of the Round Mini Shoulder bags in North America and Europe.
Best known for low-cost ‘fast fashion’, Chinese retailer SHEIN is a major fashion retailer. It doesn’t publish financial reports, but it’s estimated it makes $AU45 billion in revenue annually.
Lawsuit
UNIQLO issued a warning to customers about fake versions of its products in September.
Its parent company Fast Retailing filed a lawsuit in the Tokyo District Court in December. UNIQLO is looking to sue SHEIN over an “imitation” of its Round Mini Shoulder Bag.
Fast Retailing is seeking financial compensation and has demanded the “immediate cessation of sales” of the SHEIN dupe.
Law in Japan
Fast Retailing alleges SHEIN violated Japan’s Unfair Competition Prevention Act. This is legislation that ensures fair competition between retailers and protects brands’ intellectual property rights.
Companies in breach of the laws can be held financially responsible and ordered to compensate impacted brands based on profits from sales of imitation products.
Other laws
The action brought by UNIQLO follows several similar accusations against SHEIN from big retailers like H&M as well as small, independent designers.
Chinese e-commerce platform Temu has also launched legal action against SHEIN, accusing it of copying features of Temu’s website and interfering with suppliers.
