Recent reports indicate that Shane and Tem have ramped up their advertising expenditures in Europe, largely due to President Trump’s tariffs, which are hindering Chinese fast fashion companies’ presence in the US. This shift in strategy comes as they’re reducing their ad spending stateside.
In terms of competition, last month saw notable increases in spending in France and the UK, with Shane upping its budget by 35% and Tem by 40% and 20%, respectively, as per data from Sensor Tower.
Conversely, average daily spending on US platforms like Facebook and Instagram dropped by about 19% from March 31 to April 13, with Temu’s share decreasing sharply by 31%, according to reported figures.
This strategic pivot was somewhat urgent, prompted by businesses rushing to adapt as Trump’s de Minimis exemption came to an end. This exemption previously allowed Shein and Temu to market products to US customers at very low prices—think $5 shirts or $10 dresses—while bypassing the customs process for faster delivery.
The new tariffs pose a significant challenge for Shein and Temu’s ability to offer affordable products. Take, for instance, a dress priced at $10 that could rise to $24.50 with the full weight of China’s 145% tariff—definitely a tougher sell for American consumers.
Temu has responded by halting shipments from China to the US, now focusing on promoting items labeled as “local” on its website. These products are sourced from US warehouses with stock that was shipped prior to the tariffs. However, there’s a catch—these inventories will inevitably start to dwindle.
In Europe, Shein and Temu have made notable leaps in advertising compared to last year, showing increases of 45% in France, 100% in the UK, and 115% in other parts of the UK.
This advertising effort has already paid off in terms of app downloads in the UK. Shein has reported a 25% rise in downloads from the previous year, while Temu’s downloads have more than doubled.
Nevertheless, it’s worth noting that these new downloads result in only a minor uptick in daily active users.
“We probably won’t acquire as many customers as we did in the US,” remarked Kimber Maderazzo, a marketing professor at Pepperdine Graziadio Business School.
