Shein accused Temu of using thousands of its product photographs to sell copied versions of Shein-branded clothing on Temu’s platform. 

The company told the court that Temu tried to benefit from Shein’s market position by reproducing images created by Shein employees.

“This was an attempt to steal a march on an existing participant in the market, and Temu has sought to obtain, we say, an unfair advantage,” Shein’s lawyer Benet Brandreth said in court.

The trial is expected to run for two weeks and is part of a case between both companies across several countries, including the United States.

During proceedings, Shein’s legal team said Temu had withdrawn part of its defence covering almost 2,300 disputed photographs. Brandreth compared the decision to “the defendant waiting to see if the witnesses will turn up, only to plead guilty”.

Temu denied the allegations and argued that Shein’s lawsuit was not simply about protecting copyright. Its lawyers said the case was aimed at slowing down a rival that has grown rapidly in global online retail.

Temu, owned by PDD Holdings, has also filed a counterclaim against Shein. The company is seeking damages after Shein secured a court injunction that forced thousands of Temu product listings offline.

At the centre of the counter-claim is Temu’s accusation that Shein tied suppliers into exclusive agreements, making it harder for competitors to access manufacturers. That competition law dispute is expected to go to trial next year.

The court case is happening at the same time that both companies are facing pressure from regulators in Europe and the United States. Authorities have increased investigation over supplier treatment, product safety, labour standards and the flood of low-cost parcels entering Western markets.

Temu is currently under investigation in the European Union over possible breaches of product safety regulations. Shein, meanwhile, is still being questioned about labour practices within its supply chain as it works towards a possible London stock market listing.

The companies have built huge international businesses by selling ultra-cheap fashion, accessories and household goods directly to shoppers online. Their rapid growth relied heavily on customs exemptions for low-value imports, which helped keep prices low.

That advantage has started to get weaker. The United States removed its de minimis customs exemption for low-value e-commerce parcels in 2025, increasing costs for retailers shipping directly from China. 

The European Union is also preparing to end similar exemptions in July 2026, a move that could affect the expansion plans of both companies.

The issue has already spread beyond Britain. Shein sued Temu in the United States last year over alleged copyright infringement, while Temu later filed its own case accusing Shein of disrupting its marketplace through what it described as “unwarranted notices”.

Although the London case focuses on copyrighted photographs and copied designs, the result could stretch further. 

While Euromonitor International revealed that retail sales in Africa was $500 billion+ in 2018, African Development Bank projected that the industry would reach $1.3 trillion by 2020, and McKinsey & Company projected growth of $860 billion in 2015 to $1.4 trillion by 2025. This represents a compound annual growth rate (CAGR) of 5.8%. With the continent’s growing population and rising middle class, this sector is expected to continue expanding.

The retail industry in Africa is diverse and comprises both formal and informal retail. Informal retail makes up a significant proportion of the sector and includes markets, street vendors, and kiosks. Formal retail, on the other hand, includes shopping malls, supermarkets, and department stores.

The growth of the retail industry in Africa is driven by several factors, including population growth, urbanization, rising disposable incomes, and increasing consumer spending. The continent has a young and growing population, with a median age of just 19.7 years, which creates a large and growing consumer base. The pace of urbanization is also accelerating, with more Africans moving to cities and creating new markets for retailers.

Another key driver of growth in the African retail industry is the increasing availability and affordability of technology. Mobile phone penetration rates are high in many African countries, which has enabled the growth of e-commerce platforms and mobile money solutions. These technologies are making it easier and more convenient for consumers to shop online and pay for goods and services.

Successful retail African startups:

1. Jumia

Jumia is a leading e-commerce platform in Africa. It was founded in 2012 and is now present in 11 African countries. Jumia’s success can be attributed to its ability to adapt to the unique challenges of the African market. The platform offers a range of products, including electronics, fashion, and beauty, and has developed its payment and logistics infrastructure to overcome the challenges of delivering products in Africa.

2. Kobo360

Kobo360 is a logistics platform that connects truck owners and drivers with businesses that need to move goods. The platform uses technology to optimize the logistics process and improve efficiency. Kobo360 has been successful because it solves a significant problem in the African market, where logistics is often unreliable and inefficient.

3. Sokowatch

Sokowatch is a B2B e-commerce platform that enables small retailers in Africa to order products directly from manufacturers and distributors. The platform uses mobile technology to enable retailers to place orders and receive deliveries quickly and efficiently. Sokowatch has disrupted the traditional retail model by cutting out middlemen and reducing costs for retailers.

4. Farmcrowdy

Farmcrowdy is an agricultural platform that connects small-scale farmers in Nigeria with investors who provide funding for farming projects. The platform enables farmers to access capital, expertise, and resources, and investors to earn returns on their investments. Farmcrowdy has disrupted the traditional agricultural model by using technology to connect farmers with investors and increase efficiency.

5. Twiga Foods

Twiga Foods is a B2B platform that connects smallholder farmers in Kenya with urban retailers. The platform uses mobile technology to enable farmers to sell their produce directly to retailers, cutting out middlemen and reducing costs. Twiga Foods has disrupted the traditional supply chain by making it more efficient and profitable for farmers and retailers.

6. Alerzo

Alerzo is a retail Nigerian startup that aims to make shopping for everyday items more convenient and affordable for consumers in Africa. The company operates an online marketplace that offers a wide range of products, including groceries, health and beauty items, electronics, and more.

Alerzo leverages technology to streamline the shopping experience and reduce costs, which enables them to offer lower prices than traditional brick-and-mortar stores. The company also partners with local businesses to expand its product offerings and support the growth of small businesses in the region.

Despite the growth potential, the African retail industry still faces some challenges, such as poor infrastructure, logistical challenges, and a lack of formal retail space. However, innovative startups are emerging and using technology, e-commerce platforms, and logistics solutions to make retail more efficient and accessible in Africa.