Chinese sales platforms are experiencing meteoric growth. Banking on very attractive prices, numerous partnerships with influencers and aggressive promotional campaigns, the Temu and Shein brands are entering the consumption habits of the French. From now on, well established on the European market, Temu and Shein represent a significant part of La Poste’s activities. During a hearing held Wednesday before the Senate Economic Affairs Committee, the CEO of the postal service operator detailed the data for this exponential growth.
Philippe Wahl explains that the two companies currently represent 22% of packages sent by its services. This is one point more than Amazon, La Poste’s first customer. To support his argument, Wahl adds that it was only 5% just five years ago. Consumer appeal for the two e-commerce platforms would also be greater on the French market than in the rest of Europe. Formerly the spearhead of La Poste, letters will only account for 15% of its sales in 2024.
Platforms in the sights of regulators
Temu and Shein are closely monitored. This Thursday, October 31, Brussels announces the opening of an investigation to ensure “that the products sold (on the Temu platform) comply with EU standards and do not endanger consumers”. From clothing to electronics, decorations and toys, the Chinese site is increasing its offers at discounted prices with the firm intention of establishing itself as a major player in the online sales sector. But the conformity of the products raises questions, as much as the environmental impact and the methods used by the company which also owns the Chinese site Pinduoduo.
Concerning product conformity, the European Commission is giving itself as much time as necessary to deliver its conclusions. The announcement of this investigation comes a month after six countries of the European Union have sounded the alarm. France, Austria, Denmark, the Netherlands and Poland invited Brussels to seriously look into the case of the company launched a little over a year ago in our green lands. If Temu was found guilty, she could be fined up to 6% of her annual turnover.
At the same time, Europe plans to reform its border tax system to adapt to the growth of these new players. The threshold of 150 euros is in doubt, it could change to adapt to a changing sector. Split shipments, undervalued items and an aging customs model, the overhaul of the text is under study. Here again, the activities of the Chinese giants could be significantly impacted, just like La Poste which has a 41% stake in Amazon, Temu and Shein to support its business.
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