Colombian Exporters Warn of Unfair Competition from Shein and Temu
Organized merchants in San Victorino, the largest wholesale market in Bogota, have felt how they went from benefiting from Chinese products to seeing them as a threat. Now they are facing the giants Temu and Shein, two fast-commerce internet platforms that move high volumes at prices that are impossible to compete with. In recent days, […]
Colombian merchants, particularly those in the wholesale market of San Victorino in Bogota, are growing increasingly concerned over the competitive disadvantage posed by fast-commerce internet platforms Shein and Temu. These platforms, which move high volumes of products at prices that make it difficult for local businesses to compete, have caused a significant drop in sales and threaten up to 23,800 jobs.
The National Foreign Trade Association (Analdex) has recently stepped up its efforts to address this issue, calling on control authorities and the National Tax and Customs Directorate (DIAN) to employ technological tools to curb illegality and protect companies that comply with taxes. The trade association emphasized the direct impact of this phenomenon on the formal economy, noting that businesses operating legally are at a disadvantage compared to these digital models.
A technical document submitted to Fenalco, Colombia's largest company in the textile sector, highlights the enormous volume of shipments from Temu, which handles around 2.2 million shipments per month to Colombia. The report cites data indicating that approximately 400,000 kilograms of merchandise enter the country daily through this platform. This situation creates asymmetric competitive conditions for Colombian commerce, affecting manufacturers, importers, merchants, and consumers.
Analdex argues that the current dynamics are causing severe effects on legally-operating business owners and calls for the use of technology to contain illegality and safeguard compliant companies. The trade association is seeking the use of technological tools by DIAN to address the "apparent abuse of international trade instruments that unbalances the rules of the market."
Written by urgent.news from Colombia One's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
