In connection with our "Digital Leaders in Sweden 2025" research, we also assessed four leading global e-commerce companies (Amazon, Shein, Temu and Zalando) in order to compare their digital capabilities and maturity with those of the 85 Swedish companies included in the research. To what extent are they really digital leaders? We chose those four since they are major international companies that are also active and expanding in the Swedish market.

Our findings show that digital-native firms surpass most Swedish companies despite not originating from or targeting Sweden as their primary market. So, in which areas do they excel specifically? And is there truly no Swedish company that can compete?

The journey of e-commerce giants in Sweden so far

Amazon entered Sweden in 2020, quickly establishing its presence with a broad product range and efficient logistics. Zalando has been in the Swedish market since 2012, enhancing delivery times with a fulfillment center near Stockholm established in 2017. Temu, a newcomer, has rapidly gained traction since its 2023 launch by offering low prices and gamified shopping experiences. Shein, well-known for its fast-fashion model, captivates younger consumers through trend-driven, affordable products and a strong social media presence. No industry in the Digital Leaders in Sweden Study has the same maturity or uses influencer marketing like our global giants. Each company’s unique strategies and adaptation to local preferences have fueled their growth in Sweden’s dynamic e-commerce landscape.

However, these companies face various challenges in expanding within Sweden’s mature e-commerce market. Amazon initially encountered cultural missteps like translation errors but has overcome them. Zalando deals with intense competition from other online retailers and high consumer expectations, requiring it to maintain quick delivery times and manage high return rates. Temu and Shein must build trust among cautious Swedish consumers, skeptical of cross-border e-commerce. Issues such as product quality, delivery times and ethical supply chain practices also present significant hurdles. Both companies score low in sustainability efforts, particularly in product repair and refurbishment possibilities.

Engaging Swedish customers

All these companies leverage common social media channels for digital marketing, including Snapchat – a platform rarely used by Swedish brands. They have excelled in using social media for inspiration, influencer marketing and community-building. In search engine marketing, only H&M matches the prowess of these e-commerce titans. Companies such as Temu invest heavily in digital marketing to attract visitors to their websites.

What can we learn from them?

E-commerce giants began as online platforms, with technology development at their core, which has given them a significant edge in digital maturity within retail. Despite this, several Swedish retailers have now emerged as digital leaders. The e-commerce giants are not afraid to try out new business models nor technology. Once they find the recipe for success, they are quick to scale.

Concerns about superfast fashion and environmental issues tied to Chinese e-commerce giants are valid. The environmental impact of returns is a challenge for all online retailers. Trends suggest more conscious buyers, but will this affect sales? Probably not; these companies adapt quickly using extensive customer data to reshape models and reach new segments. Nonetheless, their presence in Sweden elevates expectations for digital capabilities, surpassing most firms in tech leverage.

E-commerce retailers like Amazon and Temu will shape the future of the retail industry, leading advancements in understanding customer demands, identifying trends and optimizing supply chains. Observing their strategies, particularly in personalization, speed and efficiency, social shopping and available options, will be crucial.

So, are any Swedish retailer as digital mature and advanced?

Yes a few of our researched companies are! Swedish retailers have now emerged as digital leaders. Five Swedish retailers outperform the top-performing international e-commerce giants, two of which transitioned from traditional brick-and-mortar operations— IKEA and H&M. They have evolved into true digital innovators.

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For more details and information on our Digital Leaders in Sweden 2025 research or capabilities in customer experience management:

 

 

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