- Kik's leader voiceout concerning Temu and Shein: "Shouting out blatant unfairness"
Patrick Zahn, the Kik-Chef, expresses his puzzlement over the lenient handling of political regulations towards Asian retail platforms like Shein and Temu. "It's mind-boggling that these platforms can operate freely without abiding by the law and order," he shared with the Economic Journalistic Association members in Düsseldorf, labeling it as a "glaring injustice."
From Zahn's point of view, Shein and Temu enjoy unfair competitive advantages, one of which being low customs duties. These Asian e-commerce platforms mostly rely on air freight, implying no customs charges on packages worth less than 150 euros from non-EU countries upon import. The leader of the retail company Kik finds this situation unjustifiable. "We pay our dues too," Zahn emphasized, suggesting that foreign retailers operating in Europe should be subjected to the same regulations.
Zahn expressed his concern over the apparent double standards being applied. "It's strange how we do things," he stated. The majority of packages arrive in Liège, Belgium, through which 400,000 to 500,000 Temu and Shein packages are delivered daily. With only six customs officers present, we're essentially passing each package with no inspection, which is strange given the circumstances, as Zahn pointed out.
Zahn criticized the Supply Chain Act for imposing stringent regulations on European companies but failing to address such issues with online retailers like Shein and Temu. Politicians are aware of the situation but have yet to address it.
Shein and Temu have gained significant popularity in Germany. Their success is putting traditional retailers under immense pressure. According to a Textiles, Shoes, and Leather Goods Trade Association estimate, German consumers bought approximately one billion fashion items and shoes from such platforms last year. However, the portals are under controversy. Consumer advocates, politicians, and retail industry representatives criticize issues related to product quality, misleading complaint procedures, and manipulative practices, calling for stricter regulations.
Zahn argues that K K Textiles and other traditional retailers are disadvantaged by the lenient customs regulations for Asian e-commerce platforms like Shein and Temu, as they are required to pay customs duties while the latter do not due to the low customs charges on packages worth less than 150 euros from non-EU countries upon import.
Additionally, Zahn emphasizes that not only K K Textiles but all foreign retailers operating in Europe should be held accountable to the same regulatory standards as local retailers, as unfair competition persists due to the lax handling of political regulations towards Asian retail platforms.
