Fast Fashion Giants Shein and Temu Report Mixed Holiday Sales, Legal Battle Brews
The 2023 holiday season saw a mixed bag of retail performances. While overall spending grew modestly, luxury and resale luxury sectors saw declines. Meanwhile, fast fashion giants Shein and Temu reported impressive growth, with Temu suing Shein over alleged competitive practices.
Shein, the fast fashion behemoth, witnessed a 29% sales surge during the holiday period. However, its competitor Temu stole the spotlight with a staggering 910% growth from 2022. Temu also boasted double the active users of Shein in December 2023. This rapid rise comes amidst an ongoing lawsuit, with Temu accusing Shein of a multi-faceted scheme to eliminate it as a competitive threat. Shein is due to respond on February 12.
The overall holiday spending growth slowed to 1.7% year over year, a notable deceleration from 2022. Despite this, online marketplaces and off-price stores remained the top categories, growing 7% and 5% respectively. Fast fashion, including Shein and Temu, grew by 2% during the period.
The 2023 holiday season brought mixed fortunes for retailers. While Shein and Temu's fast fashion success stories dominated headlines, luxury and resale luxury sectors struggled. The Temu-Shein legal battle adds another layer of intrigue to the fast fashion landscape, with Shein's response due in February.
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