Chinese e-commerce giants Shein and Temu are scaling up their digital advertising efforts across Europe, particularly in the UK and France, as they respond to mounting tariffs in the United States.
According to fresh data from market intelligence firm Sensor Tower, both fast-fashion platforms increased their digital ad spending significantly in April across key European markets. The most substantial rises were seen in France and the UK, with Shein boosting its ad spend in both countries by 35% compared to the previous month. Temu, operated by PDD Group, raised its digital advertising expenditure by 40% in France and 20% in the UK during the same period.
The companies appear to be shifting their focus away from the US, where they have historically generated the bulk of their sales, following a major policy change. A recent move by former US President Donald Trump to scrap the de minimis exemption which allowed goods worth under $800 to enter the country duty-free is expected to hit Shein and Temu hard. This loophole had previously enabled the sale of low-cost products like $12 dresses and $5 accessories, fuelling both platforms’ rapid growth in the American market.
With the de minimis ban set to take effect on 2 May, both Shein and Temu began slashing their digital ad budgets in the US last month, a signal of tightening margins under new trade conditions. The companies are also expected to hike product prices in response to the policy shift.
Once best known in the US for dramatically undercutting rivals like Old Navy, Zara, H&M, and even some dollar store chains, Shein and Temu also made headlines for driving up ad bidding costs during last year’s holiday shopping season.
“Shein and Temu probably won’t be able to gain as many customers as they were” in the US, said Kimber Maderazzo, a marketing professor at Pepperdine Graziadio Business School. Instead, she noted, the firms are now concentrating on holding onto their existing American customer base while expanding internationally.
In the UK, this renewed focus on digital marketing is already yielding results. Sensor Tower data shows Shein app downloads rose 25% month-on-month in April, while Temu’s downloads more than doubled. However, despite the spike in installs, the number of daily active users only grew slightly, with Shein up 5% and Temu up 10%.
Looking at the year-on-year changes, Temu’s ad spend in the UK climbed 20% in April, with a much sharper 115% increase recorded in France. Shein’s figures were similarly robust, with a 100% rise in the UK and a 45% jump in France over the same period.
In the US, by contrast, Temu’s daily average digital ad spend across Facebook, Instagram, TikTok, Snap, X (formerly Twitter), and YouTube fell by 31% in the two weeks from 31 March to 13 April, compared with the prior 30 days. Shein’s ad spend over the same platforms dipped by 19% during that period.
Both retailers are also expanding their presence in Latin America. Shein more than doubled its ad spending in Brazil, with April figures showing a 140% increase from a year ago. Temu, which launched in Brazil in June 2024, saw its advertising spend soar 800 times greater than in April 2023 according to Sensor Tower brand and digital analyst Kara Lee.
“Shein did the same thing when Temu entered the US market in September 2022,” Lee said. She added, “My guess is that they’re probably utilizing a similar strategy in Brazil as well.”
