Swedish fashion behemoth H&M announced on Tuesday that it had filed a lawsuit against its rapidly expanding rival Shein in a Hong Kong court for copyright infringement. Shein, which was established in China in 2008 and has quickly risen to the top of the global fast-fashion market, is known for its affordable collections that appeal to young, tech-savvy consumers.
On Tuesday, H&M announced that it had begun legal action against Shein and Zoetop Business, a Hong Kong-based firm connected to the online retailer.
H&M reportedly cited “the striking resemblance between the products showing they must have been copied” and the “sheer scale of (Shein’s) unauthorised substantial reproduction of the copyright works” in a court document from Hong Kong.
Shein, which is currently based in Singapore, said via email that it declines to comment on ongoing legal matters.
In the fast-fashion industry, copyright infringement lawsuits are frequent, but they typically involve smaller, independent designers suing large retailers, making H&M’s suit against Shein unusual.
The Swedish high-street brand, which competes with Spain’s Inditex, the company that owns Zara, for the top spot, is one of the most recognisable in the world.
However, Shein’s quick ascent from a TikTok influencer favourite to a globally recognised brand for Gen-Z, with a reported growth of $16 billion in 2021, has tipped the scales and put it right behind H&M.
Critics have also accused it of forced labour and violations of human rights due to its low prices and relentless expansion.
This month, Shein was sued by three independent designers in the US who claim that the company “grow rich by committing individual infringements… as part of a long and continuous pattern of racketeering.”
Shein has not responded to these allegations either.
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