In recent years, platforms like SHEIN and Temu have emerged as major players in the European online retail space. They attract millions of consumers with ultra-low prices, massive product ranges, and surprisingly fast delivery. However, this rapid expansion has also created serious challenges for small and medium-sized businesses (SMBs).
Let’s explore why these platforms are dominating and what small businesses can do to stay competitive.
Why Are SHEIN and Temu So Popular?
1. Extremely Low Prices
The primary advantage these platforms offer is affordability. Clothing, accessories, electronics, home goods – all come at a fraction of the price charged by traditional retailers. This is possible because of:
- Direct sourcing from Chinese manufacturers;
- Internal logistics and fulfillment systems;
- Economies of scale and aggressive cost-cutting.
2. Fast Delivery
Both SHEIN and Temu are heavily investing in logistics hubs across Europe, including Poland, Germany, and France. This enables average delivery times of 5–10 days, approaching Amazon Prime levels of speed.
3. Local Market Adaptation
These companies offer localized websites, accept popular regional payment methods (e.g., Klarna, Revolut, PayPal), and provide tailored promotions for each European market. Their marketing strategies are data-driven and localized.
The Impact on Small Businesses
1. Price Competition Is Nearly Impossible
Small businesses struggle to compete on price. Chinese giants can afford to operate at low or even negative profit margins in the short term to capture market share — a luxury that smaller sellers don’t have.
2. Lower Margins and Profitability
In an attempt to stay competitive, many small businesses are forced to lower prices, which erodes their profit margins. In some cases, this leads to entire product categories being dropped.
3. Changing Customer Expectations
Consumers now expect “cheap and fast” by default. This puts pressure on businesses that don’t have factory access, advanced logistics, or bulk purchasing power.
What Small Businesses Can Do to Stay Competitive
1. Focus on Quality and Service
SHEIN and Temu often cannot guarantee consistent quality or excellent customer service. Small businesses can differentiate themselves by offering:
- Hand-checked products;
- Responsive, local customer support;
- Hassle-free return policies.
2. Target a Niche or Unique Product Category
Niche products, local brands, or custom items have better chances of standing out than mass-produced goods. Unique branding and storytelling help build customer loyalty.
3. Work Directly With Trusted Chinese Suppliers
Small businesses can still benefit from competitive pricing by sourcing smartly. Working with a partner like CHN-Partner helps to:
- Find verified manufacturers with favorable terms;
- Perform quality control inspections before shipping;
- Organize cost-effective ocean, rail, or air delivery;
- Obtain all necessary documents, certifications, and product labeling.
How CHN-Partner Helps You Compete With Giants
CHN-Partner specializes in helping small and medium-sized businesses source and import products from China efficiently and safely. Our clients include:
- Amazon FBA and FBM sellers;
- Shopify store owners;
- Local retailers in the EU, USA, and Canada.
We provide:
- Private Label product sourcing and packaging;
- Production management with strict quality control;
- Turnkey logistics and customs documentation;
- Market-specific consulting for niche product selection.
Conclusion
SHEIN and Temu are reshaping the European e-commerce landscape. Competing in this environment is challenging but possible — with the right strategy, niche positioning, and a reliable sourcing partner in China.
Want to build a sustainable and profitable business even in the face of rising competition? Contact CHN-Partner today — we’ll help you navigate product sourcing, branding, and logistics to make your business thrive.
