Foreign e-commerce giants are reshaping Czechia's online fashion landscape

The Czech Republic’s online fashion market is undergoing significant changes as international e-commerce giants like Shein, Temu, and Trendyol expand aggressively into the region.

You've probably already seen advertisements for products from one or all of these platforms online. Armed with massive marketing budgets and competitive pricing strategies, these platforms are reshaping how people shop for clothing online—and are now creating challenges for Czech retailers to keep pace.

Chinese platforms like Shein and Temu, alongside Turkish marketplace Trendyol, are quickly gaining popularity in the Czech online landscape. Their strategies of offering ultra-low prices, a vast selection of items, and engaging shopping experiences, such as gamification and influencer marketing, appeal especially to younger consumers.

These new entrants have placed significant pressure on traditional Czech retailers, both online and brick-and-mortar. The introduction of German platforms Zalando and About You in 2018 raised customer expectations, pushing local companies like Zoot to offer free shipping and returns.

The emergence of competition from further abroad poses additional challenges for local retailers.

“International marketplaces can afford to offer cheaper products because they often bypass certain regulations, from tax compliance to quality standards,” Ruslan Skopal, owner of Trenýrkárna.cz, tells iDnes.cz. This, he argues, puts local businesses at a competitive disadvantage.

Additionally, Czech brands are grappling with limited investment in digital infrastructure compared to their international competitors. While more advanced retailers invest a significant percent of their revenue in digital technology, traditional Czech retailers spend a much smaller fraction in comparison.

The rise of these global players is also reshaping consumer habits in the Czech Republic. Online shoppers—who are more likely to make repeat purchases—now represent a growing share of the market.

According to a recent survey by Ipsos, 42 percent of Czechs shop for clothing on Zalando, followed by About You (40 percent), dominating the marketplace after just half a decade. Czech company Zoot, once the county's most popular online fashion platform, now ranks third at 26 percent. And new players like Shein and Temu are quickly gaining ground.

Brick-and-mortar stores, meanwhile, are becoming increasingly reliant on omnichannel strategies to retain customers. While traditional shops attract loyal buyers who prefer in-person browsing, the convenience and variety offered online are hard to match.

For Czech brands to remain competitive, experts suggest focusing on building stronger customer relationships and emphasizing unique selling points such as local production or sustainable practices.

As global e-commerce giants continue to expand, the Czech retail landscape is at a crossroads. Local retailers like Zoot have struggled against international competition that is only getting stronger, but could find success by focusing on niche markets or capitalizing on their unique connection to Czech consumers.

International platforms, meanwhile, will also fight it out for Czech customers. While Zalando and About You currently dominate the local market, the new players are making waves this year thanks to aggressive marketing and low prices. But one may have a competitive advantage of its own.

"Temu and Shein come from China, and all their goods are delivered from there, but it takes two or more weeks to reach the customer," David Antoš, from consulting firm Boston Consulting Group, tells iDnes.cz.

"In contrast to its Chinese competitors, Turkish platform Trendyol is able to deliver significantly faster. On the domestic market, it also offers not only cheap generic goods, but also global brands."