Temu and Shein ‘hollowing out’ German retail

BERLIN – A new report released this week outlines the impact of Chinese consumer-to-manufacturer (C2M) giants Temu and Shein on the German retail landscape.

For the fashion and textile industry, the most critical takeaway may be the regulatory imbalance cited in the report. While European brands and retailers invest heavily in compliance with legislation such as the Packaging Act (VerpackG), the EU’s GDPR, and strict product safety standards, the report suggests that cross-border platforms often bypass these costs.