Shein sued by popular rival ahead of U.S. IPO
Published 8:16 am Tuesday, January 16, 2024
- Shoppers walk at a Uniqlo store in the Glendale Galleria shopping mall on the day after Christmas.
Fast Retailing Co., the parent company of clothing brand Uniqlo, announced that it has filed a lawsuit against the operators of Shein in a Japanese court.
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In a statement, the Tokyo-based company accuses the Chinese retailer of copying Uniqlo’s “Round Mini Shoulder Bag,” and claims that cheaper imitation products sold by the app-based retailer diminishes the Uniqlo brand.
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“[Fast Retailing Co.] filed this complaint because it has determined that the form of the imitation products sold by SHEIN closely resembles that of its own product,” Fast Retailing said in its statement. “The sale of the imitation products by SHEIN significantly undermines the high level of customer confidence in the quality of the UNIQLO brand and its products.”
Colloquially known as the “Moon Bag” on social media platforms like TikTok, Uniqlo’s Round Mini Shoulder Bag has become an obsession for some internet fashionistas, who gush over the stylish and reasonably priced accessory. Retailing for $20, the bag has been praised for its large capacity and its availability in a large palette of bright colors, as well as materials like faux leather and corduroy.
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Fashion technology company Lyst ranked the Uniqlo bag as the “hottest product” on its Lyst Index report for Q1 2023, noting in its findings that it sold out “multiple times” after content regarding the bag generated over 59 million views on TikTok.
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The lawsuit comes as Shein is preparing itself for a stateside IPO sometime this year. According to a January 12 Reuters report, the online clothing retailer is seeking approval from the China Securities Regulatory Commission (CSRC), to go public in the United States.
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