Since the pandemic, consumers have become more conscious about their spending habits due to surges in prices caused by inflation and an uncertain global economy.
Because of this shift in consumer spending and the demand for more affordable options, online fast-fashion mass retailers have become all the rage worldwide, leading many retailers, from mid-range to high-end, to face continuous sales declines.
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Shein is one of the biggest fast-fashion online retailers worldwide and has become incredibly lucrative due to its ability to respond quickly to consumer demand and trends. This company contracts manufacturers and third-party sellers who offer a wide range of mass-produced products at incredibly low prices.
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However, the popularity of giant e-tails has also increased brands’ concerns and claims over alleged trademark infringements and counterfeiting as they have begun replicating designs, which generates unfair competition for already struggling brands.
People walking in front of a Coach store.
Coach owner sues Shein over alleged illegal doings
On Mar. 13, Tapestry (TPR)  filed a lawsuit in the U.S. District Court for the Central District of California against Shein over federal trade infringements, false advertising and designation of origin, and unfair competition.
According to the lawsuit, Tapestry claims Shein designed, manufactured, marketed, and sold Coach dupes using its trademarks, including the brand’s signature “C” mark and pattern and the Coach brand name and logos.
Tapestry is the parent company of Coach, a luxury fashion brand known for its leather goods, such as bags, luggage, and accessories.Â
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The company also alleges that the e-commerce giant allowed third-party users from its marketplace platform to post product listings of these dupes without specifying that the products were not from the original Coach store but came from third-party sellers. The third-party sellers marketed the goods as being 100% authentic, although they did not have an official Coach authentication.Â
Tapestry believes that Shein’s actions could lead customers to think that the e-tailer has a partnership with Coach, allowing it to sell its official products legally.
The luxury fashion house demands a trial by jury for all claims made in the lawsuit. It seeks monetary restitution for all damages and revenue lost, injunctive relief, and destruction of all alleged illegal items.Â
Luxury brands get duped by fast fashion and retail giants
From New York’s Canal Street to Dubai’s Gold Souk, selling dupes and knock-offs of luxury designer brands has been an issue worldwide for many years.Â
However, this issue has now infiltrated even the most popular retail giants as they have begun introducing marketplace platforms in their online websites to drive business growth.
Just this past December, Walmart (WMT)  went viral for permitting third-party sellers from its online marketplace to sell Hermès Birkin bag dupes, one of the priciest and most exclusive fashion items in the luxury market, for less than $100.
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Although these allegations are incredibly troublesome for the company, Shein is no stranger to being accused of stealing and profiting from other brands’ designs.
In 2023, the e-commerce retailer was sued by three fashion designers in the U.S. over the same claims as Tapestry, and so did Uniqlo the following year in Japan.Â
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