Study on on-line retail: Temu and Shein price German retail billions and endanger tens of hundreds of jobs | EUROtoday

According to 1 estimate, the favored on-line retailers Temu and Shein are inflicting important injury to the German economic system. The retail sector loses gross sales of two.5 billion euros yearly – as a result of customers purchase merchandise from Chinese platforms as an alternative of from suppliers in Germany. This is the results of an evaluation by IW Consult on behalf of the German Trade Association (HDE).

The precise lack of gross sales for the complete economic system is estimated to be twice as excessive. This additionally contains intermediate funds resembling hire, vitality, logistics in addition to wages and the ensuing client spending. Every euro in gross sales in retail results in a complete of round two euros in gross sales in the complete economic system, mentioned Marco Trenz, economist on the Institute of German Economics.

The foundation is a consultant survey of 4,000 customers between the ages of 16 and 69 who had been surveyed on-line in February. This exhibits that 51 % of Temu and Shein customers would have purchased the merchandise they bought there for a similar worth elsewhere if this had not been doable on the Chinese platforms. 19 % would even be keen to spend more cash.

According to the evaluation, greater than 40,000 jobs have already been misplaced in Germany due to Temu and Shein, most of them in retail. “If Temu and Shein didn’t exist, a large proportion of purchases would be made in German retail. More employees would be needed for that,” says Trenz. There would even be additional jobs in intermediate providers sectors. He expects Temu and Shein’s gross sales to proceed to rise and that much more jobs might be misplaced within the medium time period.

According to HDE, Temu and Shein ship 460,000 packages each day

The researcher sees additional uncomfortable side effects from the success of the 2 purchasing portals. As a outcome, the federal, state and native governments misplaced as much as 420 million euros in tax income per yr. “If the purchases did not take place at Temu and Shein, but in German retailers, wage, trade and corporate tax would also be paid,” emphasised Trenz.

According to HDE, Temu and Shein despatched 460,000 packages to Germany each day in 2025. The platforms are in style with customers, however have come underneath criticism. Politicians, gross sales representatives and client advocates complain, amongst different issues, about product high quality, a scarcity of controls and unfair competitors situations. They are calling for stricter regulation and higher safety when purchasing on-line.

HDE President Alexander von Preen complains that Temu and Shein usually don’t meet authorized necessities, distribute unsafe items and produce many home merchants “to the brink of ruin”. These are strictly managed and cling to the regulation. The affiliation as soon as once more referred to as for more durable motion towards the platforms. “If nothing else helps, the plug has to be pulled for such massive rule violations,” mentioned von Preen.

This is how Temu and Shein react

Temu commented on the criticism. An organization spokesman mentioned on request: “Temu gives thousands of traditional companies in Germany and across Europe access to a global customer base and supports them in increasing their sales, creating jobs and being internationally competitive.” The partnerships are to be additional expanded.

A spokesman for Shein mentioned: “Scapegoating competitors and thwarting fair competition with the same recurring and baseless accusations may generate headlines.” However, this isn’t a critical technique that may assist German retailers to be aggressive.

He continued: “Today more than 600 German companies sell via our platform, create jobs and make a concrete contribution to the economy in Germany.” In the previous three years alone, Shein has paid tons of of tens of millions of euros in taxes on this nation and can proceed to satisfy all obligations sooner or later.

EU introduces new processing payment

In the battle towards the flood of small packages from on-line purchases in third international locations, a brand new processing payment will apply within the EU from November for each product ordered on-line and imported into the EU. The peak has not but been decided. The processing payment is along with deliberate new customs charges.

So far, parcels with a worth of as much as 150 euros could be imported into the worldwide neighborhood duty-free. From July, nevertheless, a tax of three euros will apply to each bundle with a items worth of as much as 150 euros. This regulation is short-term till a brand new digital platform launches after which all items imported into the EU might be topic to customs duties ranging from the primary euro.

The EU Commission can be concentrating on Temu and Shein for doable violations of the Digital Services Act. Investigations are underway towards each firms. In October, the Federal Cartel Office initiated proceedings towards Technology Limited, the corporate behind Temu. The authority is investigating the suspicion that the net market may set unacceptable pricing necessities for retailers in Germany.