Temu sues Shein for mafia-style intimidation

👔 Another day another lawsuit - In its new allegations, Temu is accusing Shein of acting like a mafia against its company as competition between the two continues. Shein is being accused of:

• Claiming copyright on products sold on Temu

• Bullying, intimidating and threating Temu’s suppliers and merchants

• Falsely imprisoning merchants, detaining them in Shein’s offices

This isn’t the first time the two got into legal battles with each other. In the past, Temu was accused of making influencers ruin Shein’s brand image while Shein was also accused of having exclusive contracts with Chinese manufacturers.

👑 The biggest in the game - The US is currently Shein’s largest market, taking 75% of the fast fashion market in 2023. People, however, still spend 20% more on Temu than Shein. It’s also trying its luck at a US IPO. Temu, on the other hand, is backed by Pinduoduo, who is close to taking Alibaba’s spot as the number one ecommerce platform in China.

TikTok invests $1.5B in Indonesia

💵 Deal of the year - TikTok will invest $1.5B to become the controlling shareholder in Tokopedia, the parent company for Indonesia’s biggest ecommerce platform. Through this, Tokopedia will integrate, maintain, and absorb TikTok Shop along with its features into its platform.

🛑 The original shutdown - Indonesia originally originally shut down their Indonesian shop because of laws that protect local merchants. TikTok shop had 6 million sellers and 7 million affiliates at this time

📊 In the stock market - Under the new deal, TikTok will own 75% of the company. Shares tumbled 8.3% as investors took their profits from the monster deal.

Jumia will shut down its food delivery business

❓️ Who they are - Jumia, Arica’s biggest ecommerce company, is planning on shutting down food delivery services. It cited operating environment and macroeconomic conditions as its reason and said that delivery only accounted for 11% of Gross Merchandise Value, making it unprofitable.

🛣️ The road to profitability - Jumia is currently trying to become more profitable by changing how its resources are allocated. They have been trimming losses which actually improved by 67% from the previous year. Some of its other cost cutting strategies include:

• Suspending most of its logistics as a service in most of its markets

• Stopping Jumia Prime, its subscription loyalty program