Retailers desperate

“Shoes for 8 euros! This is a catastrophe”

China is flooding the European market with cheap products

(Bild: APA/dpa/Uli Deck)

Shoes for eight euros delivered directly to your door in Vienna-Favoriten: "This is a catastrophe. This development will destroy our quality of life!" With these drastic words, the president of the trade association, Stephan Mayer-Heinisch, warns of the "avalanche of cheap goods from China", which is getting bigger and bigger.

Consumers and politicians alike need to wake up and develop an awareness of this "huge problem", says Mayer-Heinisch in an interview with the "Krone" newspaper. "The retail sector is under pressure, energy, rental and personnel costs have risen, there have been long-term losses as a result of Covid - and now huge Chinese internet platforms like Temu and Shein are coming and flooding the market." Jumbo jets carrying millions of parcels from China land in Hungary and Belgium every day.

Up to 40,000 parcels a day!
The figures are alarming: "Every year, two billion parcels enter Europe tax and duty free. In Germany there are 300 million, in Austria an estimated ten million - that equates to 30,000 to 40,000 parcels a day!" Customs is hopelessly overwhelmed by this, with only random checks being carried out, says Mayer-Heinisch.

Trade association president Stephan Mayer-Heinisch

(Bild: Katharina Schiffl)

"This is an incredible competitive advantage"
The Chinese giants don't have to worry about taxes, customs duties, disposal fees and the like, while retailers have to contend with more and more regulations and bureaucracy. "Each of these platforms generates more sales than Zalando, H&M and Zara combined. They are real monsters."

Now TikTok is also said to be planning another shopping platform. "And they have the added advantage of having 132 million addresses in Europe. That's an incredible competitive advantage."

"The corset of national and EU regulations is becoming ever tighter. Half of Austrian retailers already see guidance on what is legally binding as the biggest challenge in implementing sustainability. Politicians therefore need to simplify the bureaucratic jungle in order to support small and medium-sized businesses in particular," demands the President of the Austrian Retail Association.

"Places like Deutschlandsberg and Linz and Feldbach empty"
"This development is destroying our urban and local structures. In recent years, we have already had to accept 5,000 to 6,000 bankruptcies a year - and suddenly places like Deutschlandsberg, Linz and Feldbach are empty. We are facing a major economic threat." Young people will no longer find quality of life and will move on. "We can't let that happen, we have to fight against it."

Instead of easing the situation, the EU is making things even more difficult, such as the Supply Chain Act. "Probably with really good intentions, but again with additional regulations."