Consumer confidence is bouncing back in Europe, driving the revival of online shopping this year, according to a report by industry group Ecommerce Europe. This recovery comes as low-cost platforms like PDD Holdings’ Temu intensify competition across the region. Ecommerce turnover is expected to reach €958 billion ($1.05 trillion) in 2024, an 8% increase from 2023, marking the first inflation-adjusted growth since 2021.
Rising inflation had previously dampened consumer spending power, but recent trends show buyers shifting to more affordable products, especially through cheaper online marketplaces. Anton Delbarre, chief economist at EuroCommerce, noted that although consumer confidence hasn’t fully rebounded to pre-crisis levels, it’s nearing a “new normal,” though with a slightly more pessimistic outlook.
Competition from Chinese platforms like Temu is particularly significant in markets such as Germany, Denmark, and Finland. Local ecommerce associations have raised concerns, with German consumers turning increasingly to low-cost Chinese goods. Danish e-commerce leader Niels Ralund criticized the competitive imbalance, stating that platforms like Temu operate in the EU without adhering to the same regulations as local businesses. Temu, however, emphasized its commitment to compliance and its support for local European merchants.
Featured Image courtesy of Treasury Today
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