So successful are Temu and Shein in Germany - Shein and Temu Surge in German E-commerce, Face Regulatory Scrutiny
Chinese fashion retailer Shein has surged to the 7th spot in Germany's e-commerce market, with revenues soaring 18% to 1.1 billion euros in 2024. Meanwhile, its counterpart Temu has nearly quadrupled its gross merchandise volume, climbing to 5th place. However, both companies face regulatory scrutiny and criticism over product quality and business practices.
The EU Commission has launched investigations into Temu, citing potential violations of EU digital laws and consumer protection regulations. These include selling illegal products, which could result in significant fines. The EU also plans to abolish the tax exemption for small packages, which could impact Temu's business model. Both Temu and Shein have emphasized their cooperation with authorities to address these issues.
Both companies have been criticized for their product quality, lack of controls, and unfair competitive conditions. There are calls for stricter regulation, with Shein also under scrutiny for providing misleading information to customers. Asian shopping portals, including Shein and Temu, are becoming increasingly popular in Germany due to their affordable prices, engaging elements, and vast product range. However, they face stiff competition from established market leaders like Amazon, eBay, Otto, and Zalando. Shop Apotheke and Rewe have also shown strong growth in the online shop rankings, driven by changing shopping habits and the e-prescription system.
Shein's rise to the 7th place in Germany's e-commerce market is notable, but both it and Temu face regulatory challenges and criticism over product quality. As Asian shopping portals gain popularity, traditional market leaders and new entrants like Shop Apotheke and Rewe are adapting to changing consumer habits.
