Belgian retailers face ‘unfair’ competition from platforms like Shein and Temu

Online platforms are growing fast, and the competition they represent is becoming increasingly unsustainable for high-street retailers in Belgium, particularly from ultra-low-cost Chinese platforms, Shein and Temu, according to a news report.

Belgian retailers have expressed dissenting opinions regarding sales so far this summer season, Belga News Agency wrote.

The summer sales run annually the entire month of July. Belgian retailers are allowed to offer massive discounts throughout the 31 days that they are not normally permitted to do the rest of the year.

A survey by business federation Unizo and Mode Unie published on Thursday showed that 44.3 per cent of fashion retailers reported lower sales compared to the same period last year. In comparison, 24.3 per cent sold the same and 31.4 per cent sold more.

Malaise describes July’s sales

“The sales got off to a slow start due to the heatwave in the first week, but then received a significant boost,” Mode Unie director Isolde Delangheshe said. “Sales also remained stable over the last two weeks, allowing many retailers to recoup the lower sales from the first week.”

According to Mode Unie, Belgians are still very much “sales shoppers,” with many looking forward to bargain-hunting during this period.

NSZ differs. “For retailers, one word sums up this month: malaise,” the organisation said. It argues that traditional excitement around the sales is waning.

“Due to the constant discounts from certain large chains and online platforms, it is becoming increasingly difficult for consumers to visualise the right price,” said NSZ spokesperson Cedric Tack. “The concept of a ‘fair price’ is fading, which is detrimental to retailers who cannot afford to offer year-round discounts.”

‘Chinese junk’ is another issue

Mode Unie also raised concern over what it calls unfair competition from digital giants. “The fact that the government is doing nothing to stop the unfair market practices of online giants is incomprehensible to fashion retailers and is making them despondent,” said Delanghe. “Such platforms offer no added value to our society, and they saddle us with a mountain of Chinese junk,” Delanghe said, referring to Shein and Temu.

“We must act swiftly and decisively to restore and maintain fair competition between businesses,” Delanghe said. “It is unacceptable that Chinese online stores and major international players are not complying with our legislation and are encouraging overconsumption through misleading sales tactics.”

Mode Unie called on authorities to put into effect stricter controls to ensure Belgian retailers are no longer disadvantaged by what it calls “unfair digital market practices.”

Not in favour of trade barriers

However, the minister for small businesses, the self-employed and SMEs, Eléonore Simonet (MR), told Belga that “as a liberal, she is not in favour of trade barriers,” although acknowledging that the influx of Chinese parcels is “disruptive” for fair competition, consumer protection and environmental impact.

But it goes beyond the issues Chinese platforms represent. NSZ said that other matters driving consumers away are increased parking fares and mobility problems in city centres.