Rising Online Shopping Surge Amid Competition from Chinese Platforms

The recovery of consumer confidence has boosted online shopping in Europe. Despite inflation, ecommerce turnover is expected to rise, with low-cost platforms like China's Temu increasing competition. European ecommerce leaders raise concerns about unfair practices from platforms not adhering to local regulations.

Online shopping in Europe is experiencing a surge, driven by recovering consumer confidence, as revealed by industry group Ecommerce Europe. This growth comes despite inflationary pressures affecting global spending power. Low-cost marketplaces such as PDD Holdings' Temu have intensified competition, making cheap goods more accessible to European consumers.

The report indicates a promising outlook for European ecommerce turnover, projected to reach 958 billion euros this year, reflecting an 8% increase over 2023. However, high inflation rates have compelled many consumers to opt for less expensive products, resulting in a shift towards budget-friendly online platforms. American low-income households have increased their online spending, suggesting a trend of heightened price competition during the holiday season.

Challenges persist, with ecommerce leaders in Denmark, Finland, and Germany voicing concerns over Chinese platforms like Temu. These platforms, while popular, raise concerns over regulatory compliance and competition with local businesses. Temu's spokesperson emphasized their commitment to local laws and collaborations with European merchants.

(With inputs from agencies.)