Chinese online retailers such as Temu, Shein and Aliexpress have been pushing the European market for some time and offering domestic competitions through spin prices, personalization and a high speed of reaction, especially digital. Sascha Hoffmann, professor of business administration and online management at the Fresenius University of Applied Sciences (HSF) in Hamburg, evaluates the growth opportunities for the Chinese e-commerce companies as very high and advises to catch up with German online trade in certain areas.
“The potential is still great in Europe. If the platforms are able to strengthen trust in quality and service, they could penetrate the mainstream in the medium term,” Hoffmann’s assessment. “The Chinese are strong in tactical pricing, personalization and digital reaction speed. In these areas, the German players have to catch up,” added the e-commerce expert.
Even if Hoffmann does not necessarily look forward to the German online trade German, he warns not to take the situation on the shoulder: “The risk is real.”
In addition, Temu, Shein & Co. are moved to Europe in view of their falling influence in the USA – driven by the current regulations, high marketing costs and poor ratings. Inpatient retail has to struggle here since Covid pandemic and in view of the tightened economic situation, which the many bankruptcies also show in fashion retail. The takeover of about You by Zalando also goes in this direction, because the two former competitors together have better chances of asserting themselves against the growing competitive pressure from Asia.
Help through regulation
For Hoffmann, regulation must be created, for example by a package fee for shipments from third countries, the abolition of the duty -free limit, the obligation to digital traceability or the promotion of European alternatives. Even if the EU Commission is already investigating Shein and individual Member States, such as France, are facing a law against Shein or the Trade Association Germany has submitted a complaint against Temu at the Federal Cartel Office, EU policy is still lagging behind.
“Europe does not need a forcation, but clever framework. At the same time, politics has to ensure fair competition and put incentives for real sustainability,” summarizes Hoffmann.
Could Shein gain a foothold in Europe as in India?
The example of Shein in India shows how quickly the Chinese e-commerce giants act and how they are: The brand was already introduced on the lucrative market with millions of young consumers in 2018-and despite local competition (the Indian market for non-branded textiles is huge). Two years later, there were border conflicts between India and China and Chinese providers and apps such as Temu, Shein, TikTok and Co. forbidden. Unacceptable for Shein, since the company made millions of relatively easily accessible potential customers: in the neighboring country. The company therefore concluded an agreement with Mukesh Ambanis Reliance Industries, which has operated its own e-commerce platform for Shein products since then and Shein celebrated its comeback in India this year.
This development is relevant for Europe from a two -way point of view: on the one hand, Shein could also find a partner like reliance in India and localize its business. On the other hand, the fast-fashion giant is already planning to significantly expand its supply chain activities in India: In the next six to twelve months, Shein products made in India are to be sold through the British and US website of Reliance Retail, presumably “Made in India” as a label instead of “Made in China”. The number of Indian suppliers: In any case, around 150 to up to 1,000 should increase within one year.
As Reuters reported on the Shein reliance partnership, reliance Indian suppliers are said to have also encouraged to produce only 100 units per design. Production should only be increased when the demand is strongly demand – a model that minimizes risks and at the same time relies on data -driven demand optimization.
For the German online trade, this means to strain and catch up as quickly as Hoffmann recommends: “We have to recognize that these platforms from China play in a different league – especially on topics such as data use and the range. We have to combine this digital excellence with European values and sustainability. catch up. “
- Chinese online retailers such as Temu and Shein are pushing the European market and lure with spin prices and personalization.
- Expert Sascha Hoffmann from Fresenius University advises German online trading to catch up in areas such as tactical pricing and digital reaction speed.
- The EU policy lags behind, and regulations such as package fees and the abolition of the duty-free limit are required to ensure fair competition.