Trump's tariffs hurt Shein and Temu attacking the European market
The two Chinese giants lost share in the US after the tariffs imposed in May. That is why they halved their advertising investments in America
2' min read
2' min read
China's low-cost eCommerce giants are coming to terms with US tariffs and refocusing their strategies on Europe. This is according to data reported by various media in the sector, which tell how since the US introduced import tariffs even on eCommerce parcels on 2 May (previously the market was free for goods below USD 800), the scenario has changed considerably. Because the convenience of very low-cost products has crashed against the new tariffs, which has made business less efficient for both buyers and sellers.
In more detail: Temu saw its monthly active users in the US drop by 51 % (from 82 million to 40.2 million) between March and June. A minus sign also for Shein (-12%). And subsequent disinvestment in advertisements in the US market.
Both brands, in fact, drastically cut their advertising: Temu by 87 %, Shein by 69 %, thus dropping out of the top 60 of the largest digital advertisers (last year they were ranked 10th and 11th).
Among other things, Temu is trying to convert its logistics by relying on US vendors, abandoning direct shipments from China. But the operation is not straightforward. While refocusing on Europe is also an issue for Shein.
Both companies have grown tremendously in the past month in the old continent. According to Sensor Tower, the number of people using Temu's app in June increased by 76% in France, 71% in Spain, and 64% in Germany compared to the same period last year. Meanwhile, monthly active users of Shein increased between 13% and 20% in the UK, Germany and France.
