Counterfeiting claims threaten to take the shine off Shein

{"text":[[{"start":3.56,"text":"It is easy to make enemies in the ultra-competitive fashion industry, but Shein has collected more than most. The China-founded fast-fashion retailer is planning to go public in Hong Kong after previous attempts to list in New York and London ran into opposition. But while the change in venue may reduce some of the political noise, it hasn’t quietened industry complaints about alleged stolen designs."}],[{"start":26.24,"text":"All fashion relies on a certain amount of creative copying. Asos, one of the earlier generations of online stores that suffered as Shein expanded, started as a site for cheap recreations of celebrity looks — the name was an acronym for As Seen On Screen."}],[{"start":41.08,"text":"But Shein has often been accused of crossing the line. In June, a subsidiary of Italian eyewear giant EssilorLuxottica accused it of selling fake Ray-Ban sunglasses and Oakley towels. Its complaint included photographs of products bought on Shein that are not only similar in design, but also appear to include the brands’ logos."}],[{"start":60.68,"text":"It’s not alone. Shein has been targeted in more than 100 copyright lawsuits in US courts since the start of 2023, with complainants ranging from individual designers to large corporations such as Estée Lauder and Coach owner Tapestry. Several, including EssilorLuxottica and British shoemaker Dr Martens, have sued multiple times after alleging that Shein breached earlier settlements."}],[{"start":null,"text":"

"}],[{"start":84.56,"text":"Should investors care? The fall in Shein’s value over the past few years helps cushion them against some of the risks. At a mooted valuation of between $25bn and $30bn, down from about $100bn in 2022, Shein would be around half the value of H&M or Inditex on a price-to-earnings basis."}],[{"start":104.76,"text":"And, cynically, a certain amount of legal trouble could be dismissed as a cost of doing business. Shein’s model involves offering a massive range of products — more than 2mn at a given time — in relatively small numbers, so any damages for mis-selling a handful should be manageable."}],[{"start":120.28,"text":"But regulators could drive the costs much higher. Last month, the European Commission fined Alibaba’s AliExpress €550mn for breaching the Digital Services Act, including failing to prevent the spread of counterfeits. Shein is currently being investigated under the same act; a similarly sized fine would wipe out almost a third of its annual net income. Shein’s US operations are also being investigated by the US Federal Trade Commission."}],[{"start":149.32,"text":"To be fair to Shein, US marketplaces run by groups like Amazon and Walmart also have IP issues, without getting so much stick. The company says it invests heavily in detecting problems and, according to EU disclosures, it terminated the accounts of more than 200 third-party sellers for intellectual property infringements in the second half of 2025."}],[{"start":170.28,"text":"But at the very least it needs to do a better job of explaining those efforts — given the broader sensitivities around Shein’s business, even the perception of a counterfeiting problem could provide ballast for wider complaints. It has already faced questions about its supply chain, and been accused of exploiting tax loopholes to undercut rivals and selling weapons and childlike sex dolls. So far, none of the criticisms have hampered its popularity with young customers. But if anyone knows how quickly trends can change, it should be Shein."}],[{"start":203.56,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1787041547_3593.mp3"}