Temu and Shein, two emerging e-commerce giants rooted in China, are currently transforming the fields of online retail and logistics. Both companies employ different but innovative strategies to expand their market presence in Europe, particularly in Germany. While Temu is opening its marketplace, Shein is building new structures in Germany that signal an intensive expansion.
Shein’s Quiet Market Entry in Germany
Infinite Styles Ecommerce Deutschland GmbH, a subsidiary of Shein based on Berlin’s Kurfürstendamm, has operated mostly behind the scenes. However, it was recently disclosed that Shein is registered as a lobbyist in the Bundestag and is actively hiring personnel in logistics. This suggests an increased operational presence, particularly in air freight and fulfillment.
Shein uses a highly digitalized supply chain, relying on real-time tracking and factory communication to produce smaller batches based on demand. This tech-forward approach has positioned Shein as one of the world’s leading online retailers. With revenues of $30 billion in 2022 and 89 million users, the company is on a strong growth trajectory. Shein’s plans for a logistics center in Poland and recruitment efforts for the Frankfurt area indicate a focus on building its infrastructure to independently manage imports and distribution across Europe.
Temu Opens Its Marketplace
Temu, on the other hand, is following an open marketplace strategy, now allowing third-party sellers to offer their products on its platform. This expansion could position Temu as a serious competitor to platforms like Amazon and eBay in Europe, solidifying its role in global e-commerce.
Chinese Companies on an Expansion Course
The entry of Shein and Temu into the European market illustrates how Chinese companies are reshaping e-commerce through technological innovation and targeted market expansions. Developments in logistics, such as Shein’s fulfillment plans in Poland and import logistics through Frankfurt, may intensify competition in the German and European online retail markets.
Outlook
With their strategies to rethink traditional e-commerce models and digitally optimize the supply chain, Temu and Shein are set to further influence the competitive dynamics in European online retail over the coming years, setting new standards along the way.
Find the full blog post at DVZ.de.