Exclusive News: In response to the U.S. tariff increases, Shein and Temu ramp up advertising efforts in the UK and France
In response to the U.S. tariff increases, fast fashion e-commerce platforms Shein and Temu increased their advertising spending in Europe in April, with a month-on-month growth of 35% and 40% in France and the UK, respectively. Compared to the same period last year, Temu's advertising spending in the UK and France increased by 20% and 115%, respectively; Shein's advertising spending in France and the UK increased by 45% and 100%, respectively. The two companies also shifted some of their advertising to Brazil, with Shein's advertising spending in Brazil increasing by 140% year-on-year
Reuters New York, May 5 - Market intelligence company Sensor Tower's data shows that fast fashion e-commerce platforms Shein and Temu increased their digital advertising spending in Europe in April, shifting from the U.S. where they face high tariffs.
According to exclusive data provided to Reuters by Sensor Tower, Shein's advertising spending in France and the UK increased by 35% month-on-month, while Temu's spending increased by 40% and 20%, respectively.
Compared to the same period last year, Temu's advertising spending in the UK increased by 20% and by 115% in France; Shein's advertising spending increased by 45% in France and by 100% in the UK.
As these two companies increase their advertising spending in the European market (including France, Germany, Italy, Spain, and the UK), they are struggling to cope with the end of the U.S. small package tariff exemption on May 2. They cut their digital advertising spending in the U.S. last month.
Headquartered in Singapore, Shein and Temu are known in the U.S. for selling inexpensive clothing and accessories, with most of their sales coming from the U.S. A key factor in their rapid growth in the U.S. market has been the small package tariff exemption.
Kimber Maderazzo, a marketing professor at Pepperdine Graziadio Business School, stated that Shein and Temu "may not be able to attract as many customers as before" in the U.S., and that both companies are currently focused on retaining existing American consumers.
Shein and Temu have also shifted some of their digital advertising to Brazil. Kara Lee, a brand and digital analyst at Sensor Tower, said that Shein's digital advertising spending in Brazil increased by 140% year-on-year in April. Temu's advertising spending in Brazil in April was 800 times that of last year
