Uniqlo’s parent company Fast Retailing said in a statement it is suing Shein under the Unfair Competition Prevention Act. The petition was filed in court on Dec. 28, 2023, and demands “the immediate cessation of sales of the imitation products, and compensation for damages incurred by the Company as a result of these sales.”
It is very likely the lawsuit will extend into other jurisdictions if it is not settled, as both Uniqlo and Shein operate on a global bases. The Uniqlo brand operates 2,491 stores in 26 markets around the world, with a large presence in both Europe and North America. Uniqlo says the bag sold by Shein is not only virtually identical to its own round mini shoulder bag, but is also undermining the perception of quality that Uniqlo has established.
“The Company filed this complaint because it has determined that the form of the imitation products sold by SHEIN closely resembles that of its own product, and that 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,” the company said, warning it will take a hard line on any infringement of its intellectual property.
“Fast Retailing Co. Ltd., operator of UNIQLO, respects the intellectual property rights of its corporate group and other companies in its business activities,” it said in a statement. “Fast Retailing takes a resolute stance against any act that infringes on its intellectual property and will take appropriate measures in response, including legal action.”
Particularly irritating for Uniqlo is the fact some social media influencers have also put up posts about Shein’s version of the bag, like THIS ONE that boasts in the description, “I just recently found this Uniqlo Belt Bag Dupe from SHEIN, so I ordered one and it looks just like the Uniqlo brand.” The bag sold on Shein was shown on TikTok and other social media platforms in 2022 and 2023, resulting in the production selling out completely multiple times.
But Uniqlo says that popularity is based on its design. The round mini bag is worn across the torso and priced at only $20, and was so popular that it made headlines around the world, and was given the top spot on the rankings of the hottest products in early 2023 by the fashion tech firm Lyst’s. At the time of writing on Jan. 17, the hashtag #uniqlobag on TikTok had racked up more than 133.2 million views.
In an investor report in the third quarter of 2023, Fast Retailer credited the shoulder bag for sparking “considerable interest on social media” and expanding its customer base among women and younger shoppers.
That popularity inspired a wave of knockoff copies, resulting in Uniqlo issuing a warning well before the filing of this lawsuit that it would be investigating alleged counterfeiters, and could take legal action against the sellers and producers.
For its part, Shein has told various media outlets that it is currently investigating the matter and that it had no intention of violating the IP rights of any competitors.
“Shein respects the intellectual property rights of others and takes all claims of infringement seriously,” a company spokesperson said.
However, this is not the first time Shein has faced legal action over IP infringement claims. In 2023 three graphic designers sued the retailer in the US United States over alleged copyright infringement and racketeering, claiming Shein had sold exact copies of their designs, although the company said it would “vigorously defend ourselves against this lawsuit and any claims that are without merit.”
In December, Shein was also sued by its Chinese rival Temu which alleged Shein had used aggressive anti-competitive strategies.
In this case, it is very possible that Shein was unaware the bag being sold on its site was infringing the IP for the Uniqlo mini round shoulder bag. Shein uses artificial intelligence to identify fast-moving trends, and then uses a network of some 6,000 suppliers to quickly produce massive numbers of items to meet that demand. The strategy as been hugely successful, making Shein one of the most valuable fashion brands in the world, but it also means a product could hit shelves, produced by a Shein supplier, without the company necessarily being aware it had violated a competitor’s copyright.
The case is at the very early stage, and Shein’s own investigation into the matter is not yet complete.