Duty-free limit wobbles

Pressure is mounting on Temu and Shein in Brussels

The low-cost stores Temu and Shein from China are stealing customers from European retailers.

(Bild: AFP)

Germany and Austria, together with other EU states, are campaigning for tighter controls on online retailers such as the Chinese companies Temu and Shein. "We can no longer accept that hundreds of thousands of parcels arrive every day with products that do not meet European standards," said German State Secretary Sven Giegold (Greens) in Brussels.

Together with Austria, Poland, Denmark, the Netherlands and France, the German government is urging the EU Commission to impose consistent penalties if online retailers do not adhere to the applicable rules and, for example, do nothing when products on their sites are classified as unsafe. In Austria, the Austrian Retail Association and the Chamber of Commerce are calling for more measures to restore "fair competition" with Chinese online retailers.

Kocher in favor of lowering or abolishing the duty-free limit
Economics Minister Martin Kocher (ÖVP) is in favor of lowering or abolishing the duty-free limit of 150 euros for products imported into the European Union (EU). Otherwise, competition between European online trading platforms and those outside Europe (e.g. Temu, Shein) would be distorted, Kocher said on Thursday ahead of the EU Competition Council in Brussels. In view of the planned phase-out of combustion engines by 2035, technological neutrality is important.

Shein and Temu are very popular in Germany and Austria. This is mainly due to the low prices. However, the portals are controversial. Trade representatives, politicians and consumer advocates criticize product quality, a lack of controls and unfair competitive conditions, among other things. "This affects environmental law, it affects consumer law and, of course, it also applies to issues such as data protection and intellectual property rights," said Giegold. The platforms reject such accusations.

The federal states are proposing to identify and punish violations through comprehensive data collection and closer cooperation between authorities. According to the Cologne-based retail research institute IFH, 43% of consumers in Germany buy from marketplaces such as Temu and Shein. According to the industry association BEVH, the two providers account for five percent of orders in German online retail. They have more than doubled their market share within a year.

In Austria, awareness of Asian online retailers and marketplaces is growing steadily, according to the trade association. Three quarters of the Austrian population are already familiar with AliExpress/Alibaba (71 percent) and around half know Shein (52 percent) and Temu (50 percent). This brand awareness is being built up primarily through paid advertising on social media and search engines, the trade association told APA. According to the industry association, usage rates are also high, particularly for Shein. According to estimates, the fashion retailer Shein is already used by 42 percent of 15 to 27-year-olds and 10 percent of people over the age of 50. At Temu, 42 percent of young Austrians have also already ordered from Temu, and the trend is rising sharply.