In an era where Chinese e-commerce giants like Temu and Shein leverage hyper-personalized marketing to dominate global markets, European companies face a challenging paradox: consumers demand personalized experiences while simultaneously viewing data-driven marketing as an invasion of privacy. Meanwhile, heavy regulation and fear of non-compliance are leaving massive amounts of available data unused.
In this episode of Data Driven Voices, host Emma Storbacka sits down with Anette Tannerfeldt, CEO of SWEDMA (Sweden), and Jari Perko, CEO of ASML (Finland), to discuss one of marketing’s most controversial yet essential topics: profiling. As leaders of organizations representing companies working with customer data, they offer unique insights into the regulatory landscape, competitive threats, and the path forward for Nordic businesses.
In this blog, we summarize some of the key takeaways from the episode.
Profiling: Human nature or digital threat?
The conversation begins by addressing a fundamental tension: profiling is often portrayed as a dangerous invasion of privacy in the digital realm, yet it’s something humans do naturally and constantly. Jari makes a compelling case for viewing profiling through a different lens:
“Human brain is a natural profiling machine. We automatically profile another person in the first two seconds.“
He argues that merchants operating online should have the same possibility to be customer-driven as they do in physical stores, where reading customer cues and adapting service is considered good practice, not an invasion.
Anette highlights the paradox consumers present: while many view tailored online service as a risk, research shows that roughly 75% find the absence of personalization frustrating. This disconnect between stated concerns about privacy and actual expectations for personalized service creates a complex challenge for marketers trying to navigate both customer satisfaction and regulatory compliance.
The MarTech utilization crisis: Fear and inaction
One of the most striking parts in the conversation is the massive gap between data availability and actual usage.
This underutilization isn’t due to lack of data or even lack of technology. The primary inhibitors are lack of skills, limited resources, and a pervasive fear of “doing wrong” under heavy regulation. Industry research supports this trend, showing that companies assessing themselves as having high MarTech maturity dropped from 53% to 25% in just one year, a steep decline that signals a serious competitiveness issue.
The regulatory complexity has created a culture of caution that’s preventing companies from leveraging their most valuable asset: customer data. While regulation aims to protect consumers, it may inadvertently be limiting European companies in the global marketplace.
The Temu effect: A wake-up call for European competitiveness
The rise of Chinese e-commerce platforms like Temu and Shein represents more than just new competition, it’s a fundamental challenge to European business models. These companies have built their entire operating model on data, using sophisticated tactics like gamification and flash sales backed by deep pockets and unrestricted data practices.
Even more concerning is their innovation in data collection. The discussion reveals that Temu has begun deploying first-party games (similar to Candy Crush) to collect behavioral and personality data about users, a step far beyond what most European competitors are currently doing or would be allowed to do.
This creates a competitiveness dilemma: while European companies face paralyzing constraints and heavy regulatory burdens, international competitors operate with far greater freedom to leverage customer data for personalization and optimization.
Europe’s real challenge: Internal barriers, not external threats
Perhaps the most provocative moment in the conversation comes when Anette challenges the narrative around competitive threats:
“The real danger isn’t China. It’s Europe holding itself back.“
She questions whether European customers are truly as concerned about privacy as regulatory frameworks suggest, pointing out that millions readily buy from Temu despite its aggressive data practices. The democratic oversight that European regulation provides comes with trade-offs, and those trade-offs may be undermining the competitiveness of European businesses.
Both CEOs emphasize that although courage is needed, to not abandon ethical principles, but to use data responsibly within the bounds of what’s allowed. The fear of non-compliance has become so pervasive that companies are paralyzed, avoiding even legitimate uses of customer data that could improve service and competitiveness.
The path forward: Self-regulation and ethical courage
When asked what companies should do, Jari emphasizes where real value is created:
“The best self-regulation, the best ethical business practice takes place in the interface between company and the customer. That’s where the magic happens or not.“
Both leaders stress that their organizations exist to help companies navigate this complexity through confidential legal advice, examples of good business practices, and advocacy for sensible regulation. They point out that companies with continuous customer relationships and steady data flow, like banks and subscription services, tend to be most successful at data-driven marketing.
The emphasis on self-regulation rather than waiting for perfect regulatory clarity suggests a way forward: companies should focus on ethical practices in customer interactions, start with clear use cases, and engage with trade associations to get support for navigating the complex regulatory environment.
A call for courage in uncertain times
The episode concludes with a clear message: European companies need courage to compete in a global marketplace where data-driven marketing isn’t optional. This doesn’t mean abandoning privacy principles or ignoring regulation, it means understanding what’s actually allowed, using data ethically and effectively, and not letting fear of non-compliance prevent legitimate business practices.
For Nordic companies watching competitors like Temu gain market share through sophisticated data practices, the question isn’t whether to use customer data: it’s how to use it responsibly, effectively, and competitively. The alternative is watching European commerce gradually lose ground to international players who face fewer constraints.
Inspiration for marketing, sales, and data professionals
Data Driven Voices is a podcast where Avaus together with industry experts, thought leaders, and partners discuss how to harness data, technology, and strategy to drive meaningful change and business results in primarily marketing and sales. The podcast shares actionable insights, success stories, and thought-provoking challenges to help professionals with new perspectives.
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