Chinese Brands May Push Out European Ones from MediaMarkt’s Shelves

China’s JD.com has acquired a majority stake in MediaMarkt’s parent company for nearly 860 billion forints (2.2 billion euros). This is a symbolic development in the changing balance of power in the global economy, given that in 2010 it was the German company that was trying to enter the Chinese market.

As Oeconomus Economic Research Foundation writes, their undisguised goal is to squeeze old, big-name European brands out of their own markets and replace them with products developed by Chinese-owned companies.

This process is already well-advanced in China, and the focus has now shifted to Europe. In fact, it is not out of the question that JD will face competition from China, putting even more pressure on Western companies. JD’s success is largely due to the fact that it eliminates several intermediate points between the manufacturer and the consumer, and with its low profit margin, it relies heavily on its efficient logistics network.

Sales are slowly but surely shifting towards online channels, and during the transition phase, the omnichannel model is able to serve the widest range of customers in Europe.

The EU protects consumers with regulations and directives, tightening quality requirements and ensuring VAT and customs revenues, but competition and growing prosperity are already forcing companies in China to improve their standards.

Online shopping is also becoming increasingly popular in Hungary: it continues to account for roughly 9.6% of total retail sales (compared to 26.8% in China). The emergence of Temu in 2022 marked a turning point. The Chinese online marketplace quickly gained popularity, with 2.3 million Hungarians having made at least one purchase on it, currently accounting for 6% of the market, reports Oeconomus Economic Research Foundation.

MediaMarkt entered the Chinese market in 2010, but had to withdraw after just over two years. In 2025, it was symbolic that JD bought the declining German retailer. This has given the Chinese a foothold in another segment of the production chain.

JD played a major role in achieving this in China, and with the acquisition of MediaMarkt, it wants to do the same in Europe, where it plans to introduce 1,000 Chinese brands within five years. JD has made generous compromises that protect the interests of Ceconomy employees, and the data and financial systems will remain independent of the Chinese owner. We can expect innovative technology transfer that could boost European e-commerce.

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