Alibaba Announces New Membership Program for German SMEs

eCommerce giant Alibaba has launched a new membership program specifically designed for German small and medium-sized enterprises (SMEs).

The initiative, which is part of Alibaba's 25th anniversary celebrations, offers a significant reduction in membership costs, with a three-month trial available for just US$9 (previously US$399). The program aims to support German SMEs in their digital transformation efforts and expand their international reach.

The new membership package includes access to a variety of AI-powered tools, include automated product listing generation, chatbots for customer service, and data analytics software. These features are designed to streamline operations, improve buyer engagement, and support strategic decision-making for small businesses.

A survey by Alibaba found that while 88% of German SMEs recognize the importance of digitalization, only 41% have fully embraced it. In addition, only 11% are currently using AI in their operations. With access to Alibaba.com 's platform of over 47 million buyers, German SMEs have the opportunity to reach a wider audience as well as exciting AI tools.

EU Proposes Import Duty on China’s Temu, Shein and AliExpress

The European Union (EU) is considering the implementation of customs duties on low-value goods purchased from Chinese online retailers such as Temu, Shein and AliExpress.

The Commission is expected to propose the elimination of the current €150 duty-free threshold for imported goods later this month. Under existing EU regulations, packages purchased online from outside the EU are exempt from customs duties if their value falls below €150.

According to the Commission, data from 2023 indicates a significant increase in imports below the duty-free threshold, with a total of 2.3 billion items entering the EU. eCommerce imports have also shown a substantial year-on-year rise, exceeding 350,000 items in April alone, translating to nearly two deliveries per household on average.

Furthermore, EU member states reported a concerning rise in the number of unsafe products identified, with a jump of over 50% from 2022 to 2023, reaching a total of more than 3,400. Products with the most frequent safety concerns included cosmetics, toys, electrical appliances, and clothing.

The EU has already been engaged in discussions regarding the abolishment of the duty-free limit as part of a customs reform proposal introduced by the Commission in May 2023. However, recent developments suggest that the adoption of this measure may be expedited to address the surge in low-value imports.

H&M To Offer More Discounts As It Battles To Revive Sales

H&M plans to offer more discounted fashions in the second half of this year as it tries to win back customers from the likes of Zara and Shein.

H&M has over the past year or so said it was prioritising profitability over sales volumes in order to reach a 10% operating margin goal, one it hopes to achieve this year. But this has come at a cost in terms of market share, and in March the Swedish retailer said it was shifting focus to boosting sales to keep up with the competition.

On Thursday, H&M said external factors - such as material costs and currency moves - were making the 10% margin goal more difficult to reach this year, and that it needed to ramp up sales growth to get there.

Chief Executive Daniel Erver told Reuters it was vital for sales to pick up in the remaining two quarters of the year. "If we see a weak sales development in the third quarter it will be very difficult to achieve," he said in an interview.

H&M, which lists summer dresses for as little as $9.99 on its website and jeans starting at $19.99, plans to boost sales by offering more discounts in the second half of the year. "We're ... guiding for slightly higher reductions (in prices) because we see a need to activate the customers," he said. "We want to get people more re-excited about H&M ... so discounting is one way, but of course creating exciting collections, experiences and events are another," he added.