Chinese e-commerce platforms strengthen their hold on European market

In the wake of increased online shopping trends following the pandemic, Chinese online retailers are making significant efforts to tap into the European market, aiming to drive sales and attract new customers. The data provided by market research firm Euromonitor International indicates that platforms such as AliExpress and Allegro are leading in popularity within Poland, which stands as the largest e-commerce market in Central and Eastern Europe. The European e-commerce sector is projected to experience substantial growth, with forecasts suggesting that revenues could reach $707.9 billion by 2025. This growth is attributed to a compound annual growth rate of approximately 7.95 percent, expected to escalate to $961.27 billion by 2029. Such financial predictions highlight the lucrative opportunities present in the European market for cross-border e-commerce participants. Experts like Hong Yong from the Chinese Academy of International Trade and Economic Cooperation emphasize several advantages Europe offers to e-commerce platforms, including high consumer purchasing power and an efficient logistics framework. As European consumers increasingly turn to online shopping, especially post-pandemic, there is fertile ground for Chinese platforms, especially those focusing on high cost-effectiveness and localized services. Additionally, it has been noted that Temu, a rising star among e-commerce platforms, saw significant growth in the EU with a year-on-year increase of over 60 percent, particularly thriving in France where growth nearly reached 100 percent. Moreover, TikTok Shop, another major player owned by ByteDance, has begun operations in key European markets like Germany, France, and Italy, indicating a trend of Chinese e-commerce expanding its footprint in Europe.