Nearly one out of five individuals shops at Shein once a month.
Similar to Amazon and Otto, bargains can be found on Temu and Shein. However, these platforms primarily attract customers through their low prices. People who prioritize affordability over quality tend to prefer these online retailers. While they may not be at the same level as Western industry leaders, they are still selling significantly more. But will their popularity continue?
Shein and Temu have gained a lot of traction among German consumers. A study conducted by the IFH Institute in Cologne offers insights into their rise. Awareness and use of these Asian platforms have increased considerably over the past year. According to the study, 91% of respondents are aware of them and 43% utilize their services. That's a major leap from the previous year, where these numbers were around 80%. Shein has even seen a significant increase in monthly shoppers - 22% of respondents shop there at least once a month, compared to 10% in 2023.
As noted by IFH Managing Director Kai Hudetz, the appeal of Temu and Shein is mainly due to their budget-friendly prices. He additionally mentioned that these platforms offer unique products that are unavailable elsewhere, such as home accessories. However, the explosion in popularity of these sites is mostly driven by their low costs. Two-thirds of respondents said they specifically visit these websites to find deals. Half of the participants admitted to purchasing items there that they otherwise wouldn't be able to afford. Hudetz noted that German consumers are highly focused on prices, which contributed to the rapid growth of Temu and Shein in the country.
Despite their popularity, there are some concerns regarding these online platforms. 90% of respondents place the highest value on quality when making purchasing decisions. However, 62% believe that the products sold through these channels are inferior. Two-thirds can't imagine buying from companies like Shein and Temu. 83% cited poor quality as the reason they avoid such retailers, while 60% fear counterfeit goods. Almost half of the respondents feel manipulated by the platforms. Just 25% shop there without any reservations.
Expert: Hype may decline
Hudetz, a retail expert, believes that the hype surrounding Temu and Shein may not last long in Germany. "The brakes on growth are strong due to lack of trust in these portals," he said. He predicts that maintaining popularity may prove challenging, as established online retailers like Amazon hold a strong position. "There needs to be something unique and enticing for people to consider shopping elsewhere," he added.
The IFH study indicates that the online shopping boom might be over, but online shopping remains the first choice for many people. Amazon is still the top dog in the game. In February 2024, it attracted 310 million page views in Germany, well above the 42.2 million on Otto, 29.1 million on Temu, and 23.8 million on Zalando. Shein was ranked 15th with 3.4 million visitors. Additionally, traffic to Temu has actually declined since summer 2023.
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Source: www.ntv.de
