New ECC CLUB study examines the platform environment from a retailer's perspective. Retailers do not (yet) see marketplaces with goods from Asia and TikTok Shop as a threat to themselves, but unfair competition is causing frustration. From a retailer's perspective, Amazon and other marketplaces in particular have to worry about losing their share of purchases.
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Shopping via platforms, especially Amazon, has long since become a matter of course for many consumers. With a total of 60 percent of the share of online retail, Amazon remains the undisputed top dog and is also the first port of call as a source of information before both online (52%) and stationary purchases (35%). But the platform environment is changing, particularly with the emergence of newer providers such as Temu, Shein or, most recently, the TikTok Shop, which is expected to be available in Germany from 2025.
How do German retailers rate these 'new' platforms? The new ECC CLUB study "Battle of the Platform Giants" examines this question. Conclusion: Despite their poor image, consumers are buying via the Asian platforms; Temu in particular now reaches a large customer base (32%). German retailers currently see neither marketplaces with goods from Asia (65%) nor the TikTok Shop (67%) as a threat to their own company in the medium term.
Retailers frustrated by unfair competitive advantages
Although they are currently hardly seen as a threat, the vast majority of retailers (70%) are annoyed by the new providers. 78 percent believe that Temu and Co. are gaining unfair competitive advantages and are not concerned with issues such as sustainability (84%), data protection (79%) and product safety and quality standards (72%). Retailers believe that it is the responsibility of politicians to take action in the form of regulations and bans (78%) or assume that the market will determine who prevails (81%).
'Instead of just waiting for political or market-related regulations, retailers should take action themselves. Despite the frustration, the majority also recognise the benefits of the new marketplaces with goods from Asia: These quickly pick up on trends and offer a huge range of products. In this respect, it is important to learn from the new platforms where it fits your own positioning, be it through gamification on your own website or through a presence on the platforms,' says Julia Frings, project manager at ECC KÖLN, summing up the study results.
Temu and Co. as competition for marketplaces
From a retailer's perspective, marketplaces - especially Amazon - have to worry about their share of purchases. Almost five out of ten respondents (46%) see the platforms with goods from Asia and almost a third (31%) see the TikTok Shop primarily as competition for Amazon. This assessment is also reflected in the (planned) use of the platforms: more than half of retailers cannot imagine using Temu and Co. (53%) and the TikTok Shop (55%) as a sales channel.
Accordingly, only a small proportion (11%) use the marketplaces with goods from Asia, and the situation is similar when it comes to planning a presence in the TikTok Shop (12%). From a retailer's perspective, TikTok has potential: the majority are convinced that the social network is constantly setting new trends (83%), also offers new brands a platform for positioning (82%) and effectively addresses customers (74%).
More information:
IFH KÖLN
www.ifhkoeln.de