Online store | Online shopping in Finland is decreasing, China is increasing – discount giant Temu has already risen in popularity among Finns alongside Zalando

Finns online shopping shrank last year for the second year in a row, now by more than three percent, according to a survey by the Finnish Trade Union.

First of all, Finns reduced digital purchases made from home. The decline of digital shopping was particularly visible in online purchases of construction and renovation products, books and home electronics.

Instead, for example, cosmetics, pet supplies and foodstuffs were bought more than before.

“Unlike in Sweden, the online grocery store continued to grow in our country, and now accounts for just under three percent of the entire grocery store”, Chief Economist of the Finnish Trade Union Jaana Kurjenoja evaluate.

Traditionally, home electronics has been the largest product group in terms of euros in the e-commerce market, even though fashion store products, i.e. clothes, footwear, bags and accessories, have been bought most often, the Kaupa union says.

Although online purchases of fashion decreased last year, purchases of home electronics shrank even more.

Fashion now became the largest product group in the e-commerce market.

All in all, Finns made digital purchases of retail products at home and abroad for just under 5.3 billion euros. Measured by the number of monthly visits, the largest online store in Finland last year was K-ruoka.fi.

“This year, we expect the digitization of Finns to grow by around five percent. Based on the development of the beginning of the year, it seems that the growth is directed especially to foreign online stores”, Kurjenoja describes the development.

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“The online giants have changed the entire operational logic of online shopping, from marketing to logistics.”

Finland moreover, online shopping shrank last year in many continental European countries, such as Germany, France, Spain, Italy and Sweden. At the same time, in many European countries, buying from China turned to growth again.

So also in Finland.

The skyrocketing rise of Shein and especially Temu can be seen here in the growth of digital purchases of fashion and electronics from China, says Kurjenoja.

Since the beginning of the year, Temu has risen alongside Zalando, the foreign marketplace used most by Finns, with its monthly visitor numbers.

The rise of Temu and Shein can also be seen in the lists of the most downloaded and used shopping apps. Temu has become the most downloaded shopping app in both Finland and Sweden, and both Temu and Shein are among the 10 most used shopping apps in both countries.

According to Kurjenoja, they have revolutionized the entire online store.

“With cheap prices, free deliveries, an artificial intelligence-based ordering system, effective social media marketing, and making shopping fun, these online giants that bring cheap Chinese products to the world have changed the entire operational logic of online shopping, from marketing to logistics.”

In development according to the Trade Association, negative aspects can also be seen.

“Ultra-fast online shopping drives Temu and Shein's ecosystems to constantly produce new products that are not even meant to be long-lasting. Transporting individual purchases in separate packages directly from the Chinese factory to the consumer also often means that no customs are paid for the purchase. Furthermore, EU-level consumer protection is not realized if the products break easily or the product descriptions and instructions for use are not appropriate,” Kurjenoja lists.

Artificial intelligence is also changing online shopping. According to the trade association, the Finnish online store would need support in order to keep up with its international competitors, such as the Americans Amazon and Walmart.

“For example, Business Finland's forms of support should be developed in such a way that they are also aimed at improving the productivity and applied development of trade and service companies. When the basics are fixed, even small companies have a chance to succeed in international competition,” he continues.