Low prices, variety draw euro area shoppers to Chinese e-commerce
Euro area consumers are increasingly drawn to Chinese e-commerce platforms by low prices and extensive product variety, an ECB survey finds. However, concerns about product quality, trust, and environmental impact deter a significant portion of potential users.
Affordability and endless choice
Chinese e-commerce platforms like Temu and Shein have seen rapid expansion in the euro area, with shipments of low-value items from China more than doubling from 1.9 billion in 2023 to 4.17 billion in 2024.
An ECB survey reveals that over half of respondents have used these platforms, with usage highest in Greece, Portugal, and Spain (over 70%) and lowest in Germany and France (under 50%).
This popularity is particularly pronounced among lower and middle-income households, aligning with the platforms' primary appeal: low prices.
Consumers frequently cite 'price' and 'cheap' as main drivers, alongside the extensive product variety, including niche items difficult to find locally.
This combination of affordability and broad choice forms their core competitive advantage.
Beyond the bargain: What deters users
Despite the strong appeal, almost half of euro area consumers avoid Chinese e-commerce platforms due to significant concerns.
Non-users primarily cite low perceived product quality, uncertainty about durability and reliability, and issues of trust.
Worries extend to personal data security, payment safety, and the reliability of customer service.
Environmental impact, including long-distance shipping, excessive packaging, and unsustainable production, also features prominently as a deterrent.
Furthermore, a preference for supporting local European businesses and products, often perceived as having higher regulatory and labor standards, discourages some consumers from using these platforms.
Embedded demand, future pressure
The survey clearly shows that demand for low-cost goods from Chinese e-commerce platforms is now deeply embedded in euro area consumer behavior.
This trend, driven by price and variety, is unlikely to be easily displaced by shifts in sentiment, even as geopolitical concerns exist.
Consequently, the growing prevalence of these platforms could translate into greater competitive pressures for European retailers and influence broader price developments in the euro area.