Uniqlo Sues E-commerce Site 'SHEIN' for Alleged Sale of Counterfeit Products

Jan 18, 2024 | News On Japan

TOKYO - Uniqlo has filed a lawsuit against three companies, including the operator of the Chinese fashion e-commerce site SHEIN, in the Tokyo District Court for selling counterfeit shoulder bags.

The company is seeking an injunction to halt sales and approximately 160 million yen in damages. Uniqlo alleges that the shoulder bags sold on SHEIN are imitations of its "Round Mini Shoulder Bag," infringing on the Unfair Competition Prevention Act.

According to Uniqlo, even if the colors and patterns differ, the shape of the bag's body and strap closely resembles their product. The company argues that this significantly undermines the high trust in their brand and product quality, hence demanding a halt to the sales of the said items and seeking approximately 160 million yen in damages.

The company became aware of the SHEIN products in question by September last year and had posted warnings to consumers on its website. This is the first time the company has taken legal action against the sale of counterfeit goods in Japan, and Fast Retailing, which operates Uniqlo, commented, "We will continue to take appropriate measures, including legal action, against any infringement of our group's intellectual property."

SHEIN SHEIN is a fashion brand headquartered in Singapore, founded in China in 2008, and sells clothing outside of China. Unlike other fast fashion brands, SHEIN operates an online retail business without physical stores and, according to the company's website, sells products in over 150 countries worldwide. By utilizing small and medium-sized apparel factories in southern China, such as Guangdong Province, the company sells low-priced goods and has garnered support from young women in foreign markets, including the United States.

SHEIN launched a Japanese website in December 2020 and established a permanent showroom in Harajuku, Tokyo, in November of the previous year. With the proliferation of online shopping and a surge in app downloads worldwide, the company has significantly increased its sales. Foreign media report that from January to September of last year, SHEIN's sales reached $24 billion, or approximately 3.5 trillion yen.

Source: NHK

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