Temu and Shein Storm German E-commerce, Face Regulatory Scrutiny
Chinese online marketplaces Temu and Shein have made significant strides in the German e-commerce scene. Temu has surged from 11th to 5th place, while Shein has become one of the largest online shops, ranking 7th in the 'E-Commerce Market Germany 2025' study. Their affordable prices, gamification elements, and vast product variety have contributed to their growing popularity.
Temu's rise has been particularly remarkable. It nearly quadrupled its gross merchandise volume in Germany to 3.4 billion euros. Shein, too, has seen impressive growth, with its revenue increasing by 18 percent in 2024 to 1.1 billion euros.
However, their rapid expansion has not gone unnoticed by German authorities. Political and trade representatives have criticized Temu and Shein for product quality issues, lack of controls, and unfair competitive conditions. The German Trade Association has called for urgent action to protect domestic businesses. Meanwhile, EU proceedings are underway against both companies for violations of consumer protection and product safety rules.
Despite the criticisms and regulatory challenges, Temu and Shein continue to gain traction among German consumers. Their affordable offerings and innovative approaches have clearly resonated with shoppers. As their influence grows, so too will the scrutiny and potential changes in the regulatory landscape.
