The Temu and Shein platforms “they represent 22% of our packages”Post CEO Philippe Wahl declared in a parliamentary hearing on Wednesday, one point more than those managed for Amazon and despite weighing “less than 5% five years ago”. On Wednesday, during the hearing before the Senate Economic Affairs Committee, the CEO of La Poste mentioned the topic “rise of Chinese platforms”Temu and Shein, who “they represent 22% of our packages”. “Five years ago it was less than 5%”Philippe Wahl specified, “and 1% more than Amazon which is the first customer, but also the main competitor of La Poste”.
The company’s management later clarified that the share of parcels handled on behalf of the two platforms was much more significant in France than in Europe. Online commerce is currently experiencing a “very slow recovery” with a “very strong pressure on margins”Philippe Wahl had previously clarified, still maintaining that he believed that it was a “sector of the future”. 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, according to Philippe Wahl. Shein, an application born in China in 2012, is considered an emblem of the social and environmental excesses of low-cost fashion.
Tighten the screw
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… At the end of September, six European Union countries, Germany, France, Austria, Denmark, the Netherlands and Poland, called on the European Union to crack down on these online commerce sites, suspected of sell 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 they had taken to allow the reporting of illegal products. Other requests concern deceptive interfaces («dark pattern») that allow you to manipulate user behavior, the protection of minors, the transparency of product recommendation systems or even the traceability of sellers on these platforms.
Interview between the Time.news Editor and Philippe Wahl, CEO of La Poste
Time.news Editor: Good morning, Mr. Wahl. Thank you for joining us today. Your recent statements about the growth of Chinese e-commerce platforms, specifically Temu and Shein, have certainly caught the attention of many. Can you elaborate on how these platforms went from representing less than 5% of your parcels five years ago to a staggering 22% today?
Philippe Wahl: Good morning, and thank you for having me. The rise of Temu and Shein in the parcel delivery market has been remarkable. This shift reflects a broader trend in consumer behavior, where more people are turning to these platforms for their online shopping needs. Their aggressive pricing, diverse product ranges, and effective marketing strategies have made them highly appealing, especially to younger consumers.
Time.news Editor: It’s fascinating to see such rapid growth. You mentioned during your parliamentary hearing that they represent 1% more than Amazon in your packages. How does this shift influence La Poste’s strategy moving forward?
Philippe Wahl: Absolutely. Amazon has always been a key player for us, but the rise of Temu and Shein presents unique challenges and opportunities. We must adapt to a competitive landscape that isn’t just dominated by traditional players. Our strategy will involve enhancing logistics efficiency, investing in technology, and possibly exploring partnerships that can help us better serve the changing demands of e-commerce.
Time.news Editor: Speaking of challenges, you mentioned a “very slow recovery” in online commerce and “very strong pressure on margins.” How do these factors affect La Poste’s operations?
Philippe Wahl: The online commerce landscape is indeed under pressure, largely due to economic factors and changing consumer priorities. Margins are tightening as platforms compete fiercely on price, which forces us to optimize our operations and find new efficiencies. It’s about striking a balance between cost management and service quality. We believe that by innovating our delivery processes and possibly integrating sustainable practices, we can navigate these pressures effectively.
Time.news Editor: You indicated that the share of parcels handled for Temu and Shein is more significant in France than elsewhere in Europe. What do you think is driving this difference?
Philippe Wahl: France has a unique e-commerce ecosystem, characterized by a strong embrace of online shopping, particularly among younger demographics who are eager to explore international platforms. This has created a fertile ground for Temu and Shein to establish a robust customer base. Cultural factors and marketing strategies tailored to the French market have also played a significant role in their growth here.
Time.news Editor: In light of these developments, how do you see the future of parcel delivery evolving in France and Europe?
Philippe Wahl: I foresee a future where the parcel delivery sector will increasingly rely on technology and data analytics to enhance customer experience. As e-commerce continues to evolve, so too will our strategies at La Poste. We aim to be at the forefront of this evolution, ensuring that we can meet consumer demands while maintaining our commitments to sustainability and efficiency.
Time.news Editor: Thank you, Mr. Wahl, for your insights. It’s clear that as the landscape shifts, La Poste will need to remain agile and innovative to stay competitive. We look forward to seeing how these changes unfold in the coming years.
Philippe Wahl: Thank you for having me. It’s an exciting time for the industry, and I’m optimistic about what’s next!