Considered an emblem of the social and environmental abuses of online sales platforms, Temu and Shein “represent 22% of our parcels”, La Poste director general Philippe Wahl said on Wednesday during a parliamentary hearing, i.e. a point in more than those managed for Amazon. “It was less than 5% five years ago,” he said.
The parcel delivery business accounts for more than half of La Poste’s turnover, while its historic business, letters, will account for just 15% of its sales at the end of this year. Online commerce is currently experiencing a “very slow recovery” with “strong pressure on margins”, explains Philippe Wahl, who nevertheless believes that it is still a “sector of the future”.
Shein, an application born in China in 2012, is today the symbol of the excesses of discounted fashion on the Internet. The exploitation of workers in its textile factories, as well as the use of dangerous chemicals, even banned in Europe, are regularly denounced by Western NGOs.
Six EU countries call for better regulation
Temu, which is experiencing meteoric growth in Europe thanks to a low pricing strategy, is the international version of the Chinese e-commerce giant Pinduoduo, born in 2015. It offers a myriad of products: clothing, toys, decorations, tools, high -tech… Like Shein, it is distinguished by very, very low prices and deplorable working conditions.
At the end of September, six European Union countries – Germany, France, Austria, Denmark, the Netherlands and Poland – asked the European Union to crack down on these online shopping sites, suspected of selling products that are sometimes dangerous for consumers.
In June, the Commission asked Temu and Shein for information to verify their compliance with European consumer protection rules, asking them in particular about the measures taken to report illegal products. Other requests concern deceptive interfaces that allow manipulation of user behavior, the protection of minors, the transparency of product recommendation systems or even the traceability of sellers on these platforms.
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Interviewer: Welcome to Time.news. Today, we’re diving into the world of online retail and the critical impact it has on logistics and social responsibilities. Joining us is Philippe Wahl, the Director General of La Poste. Philippe, thank you for being here.
Philippe Wahl: Thank you for having me. It’s a pleasure to be here.
Interviewer: Let’s get right into it. You’ve mentioned that platforms like Temu and Shein now account for 22% of the parcels La Poste handles, which is significant. Can you explain what this growth means for your company and the wider logistics sector?
Philippe Wahl: Certainly. This shift indicates a major change in consumer behavior over the last five years. When you consider that platforms like Temu and Shein only represented less than 5% of our parcels five years ago, it’s clear that online shopping, especially through these discount fashion platforms, has exploded. For La Poste, parcel delivery has become a crucial part of our business model, now accounting for over half of our turnover.
Interviewer: That’s quite a transformation. However, while the volume is increasing, you indicated that online commerce is experiencing a “very slow recovery.” What are the main challenges you’re seeing in this space?
Philippe Wahl: The main challenges include significant pressure on margins due to increased competition and rising operational costs. While we are still optimistic about the future of e-commerce, navigating these economic pressures is complex. The margins are tighter than ever, which affects profitability across the board.
Interviewer: It sounds like a tough but essential balancing act. Shifting focus, Shein has become a focal point for criticisms regarding labor practices and environmental concerns. How does La Poste view the implications of these issues on your operations and the broader logistics industry?
Philippe Wahl: These issues are a significant concern. As a logistics provider, we have a responsibility not just to deliver parcels but also to consider the social and environmental footprint of the goods we handle. We are aware that companies like Shein and Temu are often associated with exploitative labor practices and environmental damage. It raises important questions about supply chain transparency, which we must address moving forward.
Interviewer: You mentioned earlier that the delivery of parcels accounts for a large part of La Poste’s revenue. As this sector evolves, how do you see La Poste adapting to maintain its competitiveness while also prioritizing ethical practices?
Philippe Wahl: We’re looking to innovate in several ways. First, we aim to enhance our partnerships with brands committed to ethical sourcing and sustainable practices. Furthermore, we are investing in technology to streamline our operations, thus improving our efficiency and reducing our ecological footprint. We believe that ethical practices will not only align with our values but also resonate with an increasingly conscious consumer base.
Interviewer: That’s a forward-thinking approach. What message would you like to send to consumers who might not be aware of these underlying issues with discount fashion platforms?
Philippe Wahl: I would urge consumers to think critically about the choices they make while shopping. Awareness of where and how products are made is crucial. By supporting companies that prioritize ethical practices, consumers can push the industry towards positive change. Every purchase is a vote for the kind of world we want to live in.
Interviewer: Wise words, Philippe. It’s clear that while the online retail space is growing rapidly, it also brings with it a host of challenges and responsibilities. Thank you for sharing your insights today.
Philippe Wahl: Thank you for having me. It’s an important discussion, and I appreciate the opportunity to share La Poste’s perspective.
Interviewer: And thank you to our viewers for tuning in. Stay informed and engaged as the landscape of online retail continues to evolve right before our eyes.