Temu's business model under fire

Daniel Puchert

Daniel Puchert

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Temu under fire

If Chinese clothing manufacturer Shein's allegations against competitor Temu are proven correct, the company could be forced to go back to the drawing board and change its entire business model.

This follows Shein filing a civil complaint in Washington D.C. federal court on August 20, claiming Temu encourages counterfeiting other designs and disallows the removal of admittedly copied products.
 
:rolleyes:

www.theguardian.com

‘Details I made, they made’ – designers hit back at Shein’s imitation game

Independent fashion brands across the world have seen duplicates of their clothes offered on the Chinese retailer’s site at ultra-low prices. But there appears to be little they can do about it
www.theguardian.com www.theguardian.com

‘Details I made, they made’ – designers hit back at Shein’s imitation game​

Independent fashion brands across the world have seen duplicates of their clothes offered on the Chinese retailer’s site at ultra-low prices. But there appears to be little they can do about it

Online hyper-fast fashion company Shein was last week hit by yet another lawsuit for copyright infringement, with the latest complaint brought by accessories and apparel brand Chrome Hearts. The luxury label, which is based in LA, alleges that Shein has been selling accessories with a cross-and-dagger design that are “identical with [or] substantially indistinguishable from” its own products.

...

The Observer has spoken to three other independent designers who say the fast-fashion juggernaut has stolen their designs. Approached for comment, a company spokesperson said Shein “takes all claims of infringement seriously”, adding: “It is not our intent to infringe anyone’s valid intellectual property and it is not our business model to do so.”

Shein said it had taken steps to prevent infringement, including by its suppliers and marketplace sellers. An expanded US product review team and investment in image recognition technology had, it said, led to a “double-digit percentage-point decline in infringement claims” from 2021 to 2022.
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I very much doubt that Shein went back to the drawing board.

This is happening between competitors all over, and vultures are everywhere. No matter where you are, your IP, along with any other creative works or ideas, will be exposed to exploitation when shared (even with protections in place).

I am surprised that the legal analyst did not look at Shein's history. This is not unique to Temu.
 
This is what happens when you have two companies selling overproduction from the same factory.
 
Sapphiron said:
This is what happens when you have two companies selling overproduction from the same factory.
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Nope, it's hitting the small guys as well. They're not afraid to steal a design from anywhere (local designers, design students, etc. People who really could do with the money). If it works as a test, they scale it. No credit or financial benefit goes to the originator. Copyright and trademark don't exist for these guys.

Reddit has tons of threads on this.

Your average designer (art director, industrial designer, jewellery designer) doesn't earn much, so it's a pretty k@k practice.
 
kolakidd said:
Nope, it's hitting the small guys as well. They're not afraid to steal a design from anywhere (local designers, design students, etc. People who really could do with the money). If it works as a test, they scale it. No credit or financial benefit goes to the originator. Copyright and trademark don't exist for these guys.

Reddit has tons of threads on this.

Your average designer (art director, industrial designer, jewellery designer) doesn't earn much, so it's a pretty k@k practice.
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Woolworths does it too.
 
Bliksis said:
Just business, nothing personal, I guess?
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I am reluctant to share anything, not even with businesses I am partnered with. Whether it is product ideas, promotional material, etc. Things get disseminated, quick.

It is hard to compete as the little guy. Companies do have people, like buyers, who will explore options, buying patterns, popular products (and services), and so on. People should know, when you have something produced, not made by you, especially not within your domain, and not proactively protected, that it won't be unique to you in the time to come.

Even online, everything gets scraped, even your opinions.

Sad reality.
 
Fulcrum29 said:
I am reluctant to share anything, not even with businesses I am partnered with. Whether it is product ideas, promotional material, etc. Things get disseminated, quick.

It is hard to compete as the little guy. Companies do have people, like buyers, who will explore options, buying patterns, popular products (and services), and so on. People should know, when you have something produced, not made by you, especially not within your domain, and not proactively protected, that it won't be unique to you in the time to come.

Even online, everything gets scraped, even your opinions.

Sad reality.
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There is no space for the little guy. It's all big corporates now.
 
Nothing new. Even woolworths did this.

Woolworths shamelessly copies local designer... Again

It's like they never learned a thing from the whole Frankie's debacle... So rude... https://shannonmarymac.co.za/dear-woolworths-you-have-some-explaining-to-do/ “Shannon have you seen this?” I open my WhatsApp to read the message and see a screenshot of the baby carrier I designed being sold...
mybroadband.co.za mybroadband.co.za
 
Fulcrum29 said:
Well, you can be smart. I have seen little guys grow up big.
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It's the exception.

Not every little guy needs to become a big corporate.

Even the restaurant scene is very competitive, big franchises taking over. Theres a Bossa on every damn corner now.

Yeah I'm dramatic.
 
Bliksis said:
It's the exception.

Not every little guy needs to become a big corporate.

Even the restaurant scene is very competitive, big franchises taking over. Theres a Bossa on every damn corner now.

Yeah I'm dramatic.
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True, not everyone succeeds. It takes business acumen, and running a business is no easy task.

I have talked to entrepreneurs who build businesses with the vision to sell it to a big corporate. It is not the ordinary approach.

Anyhow, business models are copied all the time too. People see success, and do seek to recreate that success.
 
I am still of opinion that to become a successful businessman, you have to sacrifice a lot of ethics, morals and honesty and basically not give a schit who you destroy on your quest for success.
 
Bliksis said:
I am still of opinion that to become a successful businessman, you have to sacrifice a lot of ethics, morals and honesty and basically not give a schit who you destroy on your quest for success.
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In my opinion. Yes, you need to be ruthless, but you don't need to roll others over. Just don't allow others to roll you over.

As I once told someone, you need to step on others, but when you are done stepping on them, pick them up.

This is a good quote:

“Seat opens up on a crowded train. It’s okay to hesitate. Maybe you’re the next stop. Maybe you’re a good Samaritan. Or maybe you think you don’t deserve it.”
 
Fulcrum29 said:
In my opinion. Yes, you need to be ruthless, but you don't need to roll others over. Just don't allow others to roll you over.

As I once told someone, you need to step on others, but when you are done stepping on them, pick them up.

This is a good quote:

“Seat opens up on a crowded train. It’s okay to hesitate. Maybe you’re the next stop. Maybe you’re a good Samaritan. Or maybe you think you don’t deserve it.”
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That's a very noble attitude. Gives me all sorts of fuzzy feelings.
 
Bliksis said:
I am still of opinion that to become a successful businessman, you have to sacrifice a lot of ethics, morals and honesty and basically not give a schit who you destroy on your quest for success.
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Like Zuckerberg.

Ruthless motherfarker
 
Bliksis said:
Not only that, you must steal opportunities others already have.
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I won't steal opportunities. I like the race, but I won't cheat. I have experienced it in practice. Some people, are shrewd to their bones.

Every bad decision I have taken is due to me being too trusting. Never again.
 
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