Asian Online Retailers Capture Record Market Share in Germany

Asian online shopping giants Temu and Shein, along with platforms like AliExpress, have achieved a record 5.3% share of Germany's e-commerce market in the second quarter. This surge represents a significant increase from the previous year, with these platforms experiencing revenue growth exceeding 20%, far surpassing the overall German online retail market's modest 5.1% expansion.

The Bundesverband E-Commerce und Versandhandel Deutschland (Bevh) reported that these Asian providers are particularly dominant in the online fashion sector, accounting for over 16% of all orders in that segment. Martin Groß-Albenhausen, deputy CEO of the Bevh, attributed their popularity to "particularly low prices," noting that many consumers report positive shopping experiences. He anticipates further market share gains for these platforms.

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The Asian platforms are popular primarily because of their low prices.

Recent changes to customs regulations, effective July 1, now require customs duties on previously exempt low-value orders from outside the EU, including a flat 3 euro fee per product category for items under 150 euros. However, the Bevh expects minimal impact on the Asian platforms. Bevh CEO Alien Mulyk stated that these platforms have already developed their own logistics structures within Europe, mitigating the effect of new import duties on "cheap imports from Asia."

Meanwhile, consumer sentiment in Germany remains subdued despite a slight positive trend noted in the Handelsverband Deutschland (HDE)'s consumer barometer. The ongoing conflict in Iran is cited by the HDE as a significant factor negatively impacting economic development and consumer confidence. The barometer surveys 1,600 households monthly on their spending and saving habits.

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Cheap imports from Asia will be little affected by the duty. The providers have already begun to build their own logistics structures within Europe.