Temu, Shein and Co.

Retailers complain about unfair online competition from China

Brick-and-mortar retailers in Austria are complaining about unfair competition from huge and, above all, cheap East Asian online retailers such as Temu and Shein, whose turnover in this country is set to reach a billion euros this year. The association is calling for the duty-free limit to be lowered from 150 to zero euros as a matter of urgency.

The duty-free limit must be dropped as soon as possible and not in 2028 as currently planned by the EU. In addition, the European customs authorities must also quickly improve their digital networking, the association's Managing Director Rainer Will told journalists in Vienna on Tuesday.

"Our retailers are better - but they need fair rules. Otherwise, those who don't follow the rules will always finish first," said Will, addressing the Chinese giants and domestic and European politicians.

According to the company representative, EU Competition Commissioner Margarete Vestager and Finance Minister Magnus Brunner (ÖVP) have already been approached. Due to the understanding expressed by politicians and the will for stricter rules in Germany, Will hopes that something will be done quickly.

Parcel flood from the Far East
The figures presented by the trade association at the press conference underline the need for action. Two billion parcels enter Europe duty-free every year. Two thirds of these are incorrectly declared. According to the EU Toy Association, 95% of toys purchased from Temu pose a safety risk to children. "That shouldn't be the case, but it is the case millions of times over," criticized Will. "Politicians must put a stop to this."

According to the trade association, 30,000 packages from East Asia arrive in Austria every day. "We can see that one billion euros will be spent in web stores from China this year," said Will. According to the data, 17 percent of domestic retailers also offer products sold by Temu and Shein. In each case, 44 percent feel competitive pressure from the Chinese or assume that they will lose customers to the platforms.

Criticism of bureaucracy
State-subsidized and always optimally positioned thanks to millions in advertising at Google, without having to pay rent or employees, these companies benefit from the lax EU regulations, while domestic companies receive "three new regulations a day", according to Will. "Politicians really need to focus on the economy instead of the paper economy."

There was also criticism of the high labor costs in Austria. When it comes to non-wage labor costs, it is particularly questionable why the Family Burden Equalization Fund (3.7 percent), housing subsidies (0.5 percent) and municipal tax (3.7 percent) are only paid by employees.