MORE THAN HALF OF EUROPEANS SHOP FROM CHINA - CYPRIOTS ALSO PREFER TEMU, SHEIN AND ALIEXPRESS - Filenews 16/7 by Theano Thiopoulou
Chinese e-commerce platforms, such as Temu, Shein, and AliExpress, have solidified their position in eurozone markets, attracting millions of consumers, mainly thanks to their low prices and wide variety of products on offer. This is according to the European Central Bank's Consumer Expectations Survey (CES), which is based on an article entitled "What drives euro area consumers towards Chinese e-commerce platforms".
According to the survey data, more than half of eurozone consumers have made purchases through Chinese online platforms. Their use shows significant variations between member states, with Greece, Portugal and Spain recording the highest percentages, as more than 70% of consumers say they have shopped from them.
In contrast, in Germany and France the usage rates remain below 50%. Although Cyprus is not included in the data of this ECB survey, platforms such as Temu, Shein and AliExpress have also gained a particularly strong impact in the Cypriot market, with more and more consumers choosing them for purchases of clothes, household goods, electronics and other low-cost products.
The research also shows that platforms are particularly popular among low and middle-income households, which is attributed to the potential to save money through highly competitive pricing. However, a significant percentage of higher-income consumers also choose these platforms.
At the same time, the text points out, the European Commission emphasizes the rapid increase in low-value imports from China. In 2024, about 90% of e-commerce parcels worth up to €150 that entered the European Union came from China. Their total volume more than doubled within a year, from 1.9 billion items in 2023, to 4.17 billion in 2024, a development attributed to the spectacular growth in their customer base.
As for the reasons that drive consumers to these markets, the survey answers are clear. Participants cite low prices as the main motivation, with words like "cheap," "price," and "cheaper" dominating their answers. Despite the gradual de-escalation of inflation in the euro area, consumers continue to look for cheaper options to curb their household spending.
A second important factor is the variety of products. As the survey results show, consumers appreciate the wide range of products on offer, including specialty items, accessories, and goods that can be difficult to find in local stores.
In summary, the low prices combined with the extensive selection of products appear to be the main competitive advantage of these platforms. Another element, the survey says, is that euro area consumers are more often turning to Chinese e-commerce platforms for clothing, household goods and electronics, areas where buyers tend to be particularly price-sensitive.
The vast majority of orders are of little value: almost two-thirds are worth no more than €25, and 90% are up to €50. Additionally, one in five respondents reported shopping at least once a month on these platforms. According to the research, these results once again highlight price-driven buying behaviour. The results of the ECB's consumer expectations survey also show that almost half of the respondents said they do not use Chinese platforms. Non-users said they were discouraged by concerns about low product quality, trust, reliability, payment security, and environmental impact.
The special tax
In order to limit orders from company platforms in third countries, the EU is imposing a special customs duty of €3 from 1 July for each type of product ordered by Europeans from such businesses. In particular, the new duty is imposed per item for small parcels worth up to €150 imported from third countries, with the stated aim of tackling unfair competition and strengthening security checks on e-commerce products. If an order (parcel) includes different categories of products, each category is charged separately.
The measure, which will be in force until 2028 when a complete overhaul of the European customs system is expected, mainly affects purchases from popular Asian platforms such as Shein, Temu and AliExpress, while it may also affect orders from other third countries, including the US and the UK, depending on the supplier.
