Fashion union: Market situation untenable due to Chinese online shops

Fashion union: Market situation untenable due to Chinese online shops
Illustration picture shows the official start of the winter sales, Monday 04 January 2021 in Antwerp. BELGA PHOTO DIRK WAEM

Belgian retailers responded with mixed feelings on Thursday regarding the success of the recent sales period.

The Neutral Syndicate for the Self-Employed (NSZ) expressed concern, while the fashion traders’ federation, Mode Unie, reported satisfaction with the results. Both organisations agree that competition from major online platforms is becoming untenable.

The summer sales run annually from 1 July to 31 July, offering retailers the chance to provide substantial discounts not typically available at other times. A survey by business organisations Unizo and Mode Unie revealed that less than half (44.3%) of fashion retailers sold less this year compared to last year’s sales period, with the remainder selling the same (24.3%) or more (31.4%).

Isolde Delanghe of Mode Unie expressed contentment with the outcomes, noting that although the sales period began slowly due to a heatwave in the first week, it subsequently gained momentum. She added that stable sales in the last two weeks helped many retailers recover from the slow start, reaffirming Belgians’ continued enthusiasm for bargain hunting.

In contrast, the NSZ painted a gloomier picture, describing the period with one word: “malaise.” The organisation contends that the unique appeal of sales has diminished due to constant discounts from large chains and online platforms, making it hard for consumers to gauge fair prices and disadvantaging retailers who cannot afford year-round discounts.

Mode Unie also raised concerns about unfair competition from internet platforms, criticising government inaction against unfair market practices by online giants. Delanghe condemned the negligible contributions of platforms like Shein and Temu, which exacerbate waste issues with cheap imports.

Delanghe called for urgent action to restore fair competition, stressing the need for stricter regulations to prevent Chinese and large international webshops from flouting local laws and prompting overconsumption with misleading practices.

Minister of Small Business, Self-Employed and SMEs, Eléonore Simonet, stated her opposition to trade barriers but acknowledged the disruptive inflow of parcels from China regarding competition, consumer protection, and ecology. She expressed some support for EU initiatives taxing packages under €150.

Simonet indicated that new regulations should be part of a small business plan to be discussed post-summer by the federal government. Earlier, Minister of Work and Economy David Clarinval mentioned forming a task force to address e-commerce challenges, backing the EU’s proposal for additional taxation on low-cost packages.

Finally, the NSZ highlighted two other issues: increasing parking costs and mobility problems in city centres deterring customers. The organisation proposed implementing free parking on certain days. Furthermore, NSZ suggested reconsidering the timing of the sales period, perhaps shifting it by a month to align better with seasonal changes.

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