Swedish consumer durables retailers face growing challenges from foreign e-commerce giants, particularly Chinese platforms Temu and Shein, which attract Swedish consumers with low prices. A report from the Swedish Trade Economic Council highlights the increasing competition and advises Swedish retailers to shift their strategies beyond price wars.
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Cecilia Hermansson, chair of the council and researcher at KTH, points out that 'increased trade flows from primarily Chinese market platforms are putting pressure on competitive consumer goods retail,' partly due to uneven regulatory conditions. She stresses the need for faster EU regulations to limit the sale of unsustainable and unethical products on these platforms.
While Temu and Shein's low prices have drawn more Swedish buyers, many consumers remain sceptical about product durability and safety. Elin Nilsson, associate professor at Umeå University and council member, explains that a significant portion of shoppers "'eel distrustful of the products' poor durability and safety,' leading some to avoid these platforms.
The council recommends that Swedish retailers focus on quality, sustainability, and second-hand goods rather than competing solely on price. Ulf Johansson, professor at Lund University, notes that combining physical stores with strong digital channels and investing in staff development are essential for success.
Despite current economic pressures, the council remains optimistic. Former Statistics Sweden forecaster Håkan Frisén predicts that 'Swedish households will eventually increase their consumption' as lower interest rates and inflation improve real wages, lessening the focus on low prices.
This strategic shift offers Swedish retailers a way to better compete with international e-commerce by prioritising sustainability and customer trust.
Source: www.ehandel.se