Shein and Temu will increase their investment in digital advertising in the UK and France. This move follows new tariffs in the United States, where both companies face tariff and trade restrictions that threaten their sales. The platforms, known for offering low-cost products and for their value chain in China, are now shifting their focus to European markets.

Thus, online platforms have redirected the focus of their marketing investment to Europe, especially France and the United Kingdom, with Shein increasing its advertising investment by 35% and Temu by up to 40%, reports Modaes. This movement is a consequence of the end of the de minimis exemption in the United States, which exempted packages under $800 from tariffs, a measure promoted by President Donald Trump that forced both brands to reduce their activity in the US.

Despite their investment efforts, the impact on daily active users was subtle: Shein grew 5% in the UK and Temu 10%. However, Shein's app downloads increased by 25%, while Temu doubled its numbers. Faced with the price war, brands are looking to consolidate their presence in Europe and conquer new markets to compete with giants like Zara, H&M, and Old Navy.

Investment in Brazil

Beyond Europe, Brazil is positioning itself as a key new market. Shein increased its advertising investment in Brazil by 140% compared to April of last year, in response to Temu's entry into the Latin American market. According to analysis from the Sensor Tower platform, this strategy aims to compensate for the loss of competitiveness in the North American market, where the two giants, Shein and Temu, reduced their spending on social networks such as Facebook, TikTok, and YouTube by 19% and 31%, respectively.

According to statements published by Reuters, Professor Kimber Maderazzo of Pepperdine Graziadio Business School warns that brands "probably won't be able to attract as many customers as they used to in the US." Therefore, their goal now is to retain existing users in the American market while launching aggressive campaigns in Europe and Latin America.