Fast-fashion giants Temu and Shein under fire in Germany

Chinese ultra-fast fashion platforms Temu and Shein are rapidly reshaping Germany’s retail landscape, with a new report warning of significant economic losses, regulatory gaps, and pressure on domestic businesses.

According to the report, Germany is losing an estimated €2.4 billion in annual economic value as consumers increasingly shift toward low-cost, direct-from-manufacturer online shopping models, News.Az reports, citing foreign media.

The analysis highlights growing concerns within the Germany retail and fashion sector, where traditional companies argue they are being undercut by platforms that operate with lower compliance costs.

European retailers are required to meet strict standards, including packaging regulations, data protection laws under GDPR, and extensive product safety requirements. However, the report claims that cross-border digital platforms often avoid a significant portion of these regulatory costs.

Industry stakeholders warn that this imbalance is contributing to structural pressure on local retailers, particularly in the fashion and textile sector, where price competition is especially intense.

Beyond economic impact, the report also raises concerns about potential job losses and long-term erosion of Germany’s domestic retail base if current trends continue.

As ultra-fast fashion platforms continue expanding across Europe, policymakers are facing growing pressure to address regulatory disparities and reassess how cross-border e-commerce is governed in the EU market.

News.Az 

By Aysel Mammadzada