Shein and Temu shoot their investment in digital advertising in the United Kingdom and France. The measure arrives after the new tariffs in the United States, where both companies face tariff and commercial restrictions that threaten their sales in the country. Platforms, known for offering products low cost And their value chain in China, they are now changing their focus towards European markets.
Online platforms have redirected the marketing investment approach to Europe, especially in France and the United Kingdomwith a 35% increase in advertising expenditure by Shein and up to 40% in the case of Temu. This movement is a consequence of the end of legal exemption de minimis In the United States, which exempt tariffs on packages below 800 dollars, a measure promoted by President Donald Trump and has forced both brands to reduce their activity in the North American country.
Despite its investment effort, the impact on daily active users has been subtle: Shein has grown 5% in the United Kingdom and Temu, 10%. Howeverthe downloads of their applications have fired 25% in Shein and in parallel Temu has doubled the figures. Faced with the war of tariffs, brands seek to consolidate their presence in Europe and ensure new markets where to compete with giants such as Zara, H&M or Old Navy.
Shein and Temu seek to maintain their growth despite the brake on the US market
In addition to Europe, Brazil is positioned as a new key market. Shein increased his advertising expenditure by 140% compared to the month of April last year, in response to Temu’s entry into the Latin American market. According to platform analysis Sensor Towerthis strategy wants to compensate for the loss of competitiveness in the US market, where the two giants, Shein and Temu have reduced 19% and 31% respectively their expenditure on social networks such as Facebook, Tiktok or YouTube.
According to the statements published in Reuters, Professor Kimber Maderazzzo, of the Pepperdine Graziadio Business School, warns that the brands “They probably cannot capture as many clients as before in the United States”. Therefore, its objective now is to keep existing users in that market while deploying aggressive campaigns in Europe and Latin America.
Shein and Temu began to transfer the effects of tariff war to their prices on the North American market on April 25. Both platforms announced a price increase, anticipating the entry into force of the new regulations that force taxes.
