The rapid increase in the presence in Latin America of Chinese online stores with merchandise at very low prices keeps governments on alert, which are studying measures to protect retailers due to possible unfair competition.

The very low prices of Chinese chains such as AliExpress or Shein cause a sensation among young people, who prolong their browsing on these platforms, attracted by new products and super-cheap packages.

The data company Statista reported data from 2022, where “online commerce moved 122,000 million dollars in Latin America and could reach 200,000 million by 2026.”

AliExpress, Shein and Temu are at the top of the list of Chinese online companies with wide influence in the region. Their offers consist of “products at very low prices after direct purchase from suppliers and agreements with logistics companies.”

As a protection measure against the daily flow of packages in customs, countries such as Chile and Brazil decided to eliminate “tax exemptions for purchases from abroad under 41 and 50 dollars, respectively.” On the other hand, Mexico decided to apply controls on this commercial activity to strengthen trade.

In addition to the investigations into some Chinese online store chains for possible unfair competition in Latin America, last October the European Union announced an investigation into the Temu firm “for alleged sale of illicit products through these platforms.”

Another risk for the consumer is the possible addiction to online shopping, since customers spend hours scrutinizing offers, new packages and extraordinary discounts instead of investing that time in sharing with family or resting.

There are other aspects related to fashion, such as the exploitation of specific ethnic groups in factories around the world, as well as the increase in polluting emissions that contribute to the greenhouse effect, in addition to the increase in wastewater.

M.Pino

Source: forbes.com.mx

(Reference image source: CardMapr.nl in Unsplash)

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