Düsseldorf, September 7 (FinanceFlashNews) – German shoe retailers and manufacturers are grappling with stiff competition from Asian e-commerce platforms, reported the German Retail Association for Textiles, Footwear, and Leather Goods (BTE) during this week’s shoe fair in Düsseldorf. According to a report by DPA, platforms like Singapore’s Shein and China’s Temu are flooding the market with inexpensive, often low-quality footwear, some of which poses health risks.
Rolf Pangels, Director of BTE, expressed concerns about the influx of cheap imports: “Shein and Temu are saturating the German market with low-cost shoes, the majority of which are of poor quality and some are even harmful to health,” he said.
Both platforms refute the criticism of their products, insisting they enforce strict quality controls and safety standards from their suppliers. However, BTE is calling for more effective regulation and fair competition. “If the activities of these platforms are not curbed, more insolvencies in the footwear trade will follow,” Pangels warned.
The number of shoe stores in Germany has dropped from the start of the year by about 800 to approximately 8,750, according to BTE. Despite a price increase of 2%, retailers reported a lower turnover in the first half of 2024 compared to the same period last year, which, adjusted for inflation, might represent an even more significant decline due to weak consumer sentiment and poor weather in May and June.
“After a strong start to the year, the stores experienced a painful double-digit decline in revenues in May and June,” Pangels noted.
The outlook remains gloomy, with over half of German shoe retailers expecting lower sales than in 2023, and only 30% anticipating an increase, per a BTE survey. Approximately 41% of the retailers describe their situation as poor, while only 16% view it as good.
Market Overview Table:
| Indicator | Data |
|---|---|
| Number of Shoe Stores (2024) | Approximately 8,750 |
| Annual Turnover Change (2024 H1) | -2% compared to 2023 |
| Forecast for Sales Growth (2024) | 30% anticipate increase |
| Retailers’ Economic Outlook | 41% report poor conditions |
Keywords: German footwear market, Asian e-commerce, shoe retail crisis, BTE, Shein, Temu, market competition.
