In the coming year, France is set to present a significant challenge to online retailers, such as Shein, according to the country’s Minister for Small and Medium-Sized Businesses, Serge Papin. He spoke out on the issue last Thursday, explaining that these online platforms are presenting an undeniable threat to French retailers.
Papin voiced concerns that the competition between physical stores and online platforms is far from even. He highlighted that brick-and-mortar stores are held accountable for the products they sell, whereas their online competitors are not. This discrepancy is causing concern among those in the French retail industry.
A high-profile case is set to be heard in a Paris court involving Shein, an online marketplace that recently came under fire when child-like sex dolls were found for sale on its platform. Despite this controversy and a partial reopening of its marketplace, Shein chose not to comment on the situation.
The Minister claimed that such violations are not isolated incidents but are instead a systemic issue. He expressed confidence that the court will be sympathetic to his case that Shein is causing “disturbance to public order”.
In order to address this issue, two French lawmakers are reported to be drafting a bill that would give the government the power to suspend online platforms without requiring court approval. Papin expressed a hope that this proposed legislation will lead to a decrease in Shein’s sales in France.
The rapid expansion of Shein has not been without its detractors. The company, which sells inexpensive clothing and accessories shipped directly from factories in China, has faced criticism in numerous European countries where traditional retailers are feeling the pressure.
“We need to protect ourselves, of course, there is unfair competition, they must respect the consumer rules,” Papin stated regarding the situation.
The French government responded by implementing a 2 euro tax due to come into effect on March 1. Similarly, the European Union plans to introduce a 3 euro tax in the summer on small parcels that were previously exempt from tariffs. This is all part of a broader strategy to curb sales by Shein and similar platforms.
Why are online retailers posing a threat to French chains?
Online retailers can often bypass regulations that physical stores must adhere to, offering customers vast choice and lower prices. This has led to intense competition, perceived as unfair by traditional retailers.
What is the proposed solution to this issue?
The French government is considering legislation that would give them the power to suspend online platforms without court approval. They have also implemented a tax on small parcels from these platforms.
How has the international community reacted to the rise of online retailers like Shein?
The rise of Shein has been met with backlash in several European countries. Both France and the European Union plan to introduce taxes on small packages, which were previously exempt from tariffs, in an attempt to curb the influence of these online platforms.
