Press releases

The popularity of supermarket fashion seems to be slowing down the emergence of Chinese ultra-fast fashion for now

According to the Finnish Commerce Federation's study "Muotikauppa ultrapikamuodin aikakaudella" (Fashion trade in the era of ultra-fast fashion)*, the Finnish consumer market for clothing has developed more slowly than that of other Nordic countries. Slow growth will continue in the coming years, as the ageing population, low economic growth and purchasing power limit development. On the other hand, the popularity of ultra-fast fashion is increasing volumes in the consumer market. Supermarkets are some of the most popular clothing retailers in Finland, and the popularity of supermarket fashion can slow down the emergence of fast fashion somewhat. Currently, almost a third of online purchasers of clothing also return their orders.

Appeal from organisations: Company restraining order needed soon – serious threatening situations in customer service work and crimes against commerce continue to rise

Prime Minister Petteri Orpo’s government is committed to imposing a company restraint order. Several organisations are now calling for the promise to be put into practice. Shoplifting and disruptive behaviour in stores are on the rise, so there is no need to postpone the start of the legislative process. The new law is particularly needed to ensure work and business safety, as a number of customers repeatedly pose a serious security threat to shop employees and customers.

The cosmetics market is growing everywhere – more and more people are investing in luxury products in Finland

The European and Finnish cosmetics markets are expected to grow noticeably slower than the rest of the world in the coming years. In luxury cosmetics, however, the Finnish market is growing faster than the global average, according to a recent report on cosmetics consumer market by the Finnish Commerce Federation. Cosmetics purchases in Finland are most strongly guided by low prices and suitability for skin type. In recent years, the use of cleanliness products has declined, especially among under 30-year-olds.

Tax increases chastise commerce and the consumer

The goal of the budget framework session to reduce indebtedness is understandable, but the government's decision to increase the general VAT rate by one and a half percentage points is a significant blow especially to the speciality and household goods trade operating in Finland. The necessary structural reforms also remained minor in the budget framework session.

Structural reforms needed in the budget framework session – an efficient market improves consumers' purchasing power  

The budget framework session offers the last chance to make the necessary structural reforms in order to improve state finances and consumers' purchasing power, says the Finnish Commerce Federation. The general VAT rate should not be increased as this would heavily affect domestic specialty goods trade and low-income households, in particular, by weakening purchasing power. RDI funding should also be reformed and directed to the trade sectors.  

Online buying from domestic sources decreased while online buying from China increased – Finnish speciality goods trade needs support in order to compete

Online shopping by Finns from domestic and foreign sources shrank by a good three per cent last year. Online purchases of domestic commodities decreased more than those of foreign ones, which was also affected by the rise of Chinese digital trade giants Temu and Shein. In February 2024, Temu has already become the most used foreign marketplace by Finns when measured by the number of visits. In order to cope with international competition, domestic speciality goods trade should receive support for digitalisation and, for example, the adoption and application of AI-based solutions.

Additional investments in research and development activities must be directed to applied research and diversification of the economic structure

Service Sector Employers Palta and the Finnish Commerce Federation demand that growing public research and development funding be directed towards applied research and diversification of the economic structure. The current situation, in which the productivity of private services in particular has lagged behind the development of competitor countries, is unsustainable.

An efficient pharmaceutical sales system would save the economy up to EUR 250 million

The Finnish Commerce Federation encourages the government to implement structural reforms in the financial decisions of the budget framework session. According to calculations commissioned by the Federation, the structural reform of the retail distribution system of pharmaceuticals would bring the combined annual savings of the state and consumers up to EUR 250 million. Due to the increasing pharmaceutical reimbursement costs of the ageing population, there should be no further delays with the reform.