KiK boss Patrick Zahn criticizes unfair competition from Asian shopping portals such as Temu and Shein. He demands that politicians ensure that the same regulations apply to all retailers.
KiK boss Patrick Zahn complains that politicians are taking too lax a crackdown on Asian shopping portals such as Shein and Temu. “We are very confused that it is even possible for such providers to operate on the market and not comply with the law,” he said to members of the Business Journalists Association in Düsseldorf. This is “a blatant injustice.”
From Zahn’s point of view, Shein and Temu benefit from undue competitive advantages, for example when it comes to customs. The Asian online platforms mainly use air freight. For orders from non-EU countries, no import fees have to be paid for packages with a value of less than 150 euros. The head of the retail company KiK considers this to be unfair. “We also pay customs duties.” Foreign suppliers who trade in Europe would have to do the same the other way around.
Zahn: “It’s funny how we have double standards”
According to Zahn, customs are completely overwhelmed by the situation. “The majority of packages come into Belgium via Liège. Every day, between 400,000 and 500,000 packages from Temu and Shein arrive there. There are six customs officers there. That means the inspection rate is zero.” It is therefore necessary to check packages from Asia more strictly. “It is strange how we apply double standards,” says Zahn. The supply chain law demands a lot from European companies, but not from portals like Shein and Temu. Politicians are aware of this, but they have not addressed the problem.
The online retailers Shein and Temu are very popular in Germany. Their success is putting established retailers under pressure. According to an estimate by the Textile, Shoes and Leather Goods Trade Association, consumers in Germany bought around a billion fashion items and shoes from providers such as Shein and Temu last year. However, the portals are controversial. Consumer advocates, politicians and representatives of the retail industry criticize product quality, misleading complaint procedures and manipulative practices, among other things, and advocate for stricter rules.
Source: Stern
