Published by Global Banking & Finance Review®
Posted on May 5, 2025
3 min readLast updated: January 24, 2026
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Shein and Temu boost ad spending in Europe as US tariffs impact their strategy, focusing on UK and France markets while expanding in Brazil.
By Arriana McLymore
NEW YORK (Reuters) -Shein and Temu, fast-fashion e-commerce platforms that ship merchandise from China, boosted their spending on digital ads in Europe in April, data from market intelligence firm Sensor Tower showed, a shift away from the U.S., where the companies face crushing tariffs.
Shein’s ad spending rose 35% in France and the U.K., while PDD Group's Temu increased spending by 40% and 20% month-over-month, respectively, according to Sensor Tower data provided exclusively to Reuters.
The boost in advertising in Europe, which includes France, Germany, Italy, Spain, and the United Kingdom, comes as the retailers grapple with U.S. President Donald Trump's ban on de minimis, a trade exemption that previously allowed for packages valued under $800 to enter the country duty-free. The exemption played a key factor in Shein and Temu's rapid growth in selling $12 dresses and $5 accessories in the U.S., where both companies get a majority of their sales.
The two companies, which ship merchandise from China, slashed digital ads in the U.S. last month ahead of the May 2 ban on de minimis. Both companies are hiking prices as Trump's trade policies crack down on cheap imports and the moves are expected to pinch their margins.
Singapore-based Shein and Temu became known in the U.S. for selling cheap apparel and accessories, often undercutting competitors including Gap's Old Navy, Inditex's Zara, H&M and some dollar stores on price. The e-retailers also drove up the prices of digital ad bids during the most recent holiday shopping season.
Kimber Maderazzo, marketing professor at Pepperdine Graziadio Business School, said that Shein and Temu "probably won't be able to gain as many customers as they were" in the U.S. She said the two companies are now focusing on retaining the American shoppers they already have, a counter to their new internationally digital advertising strategies.
Advertising in the U.K. is helping Shein and Temu secure more app downloads, Sensor Tower said, with Shein downloads increasing 25% month-over-month and Temu more than doubling. Despite the increase in advertising and app downloads, daily active users of the apps have increased only marginally month-over-month. Shein's U.K. daily active users increased 5% and Temu's increased 10%
On a year-to-year basis, Temu increased its ad spending in the UK by 20% and in France by 115%. Shein increased it by 45% in France and 100% in the UK from last year in April.
Shein and Temu are also shifting some digital advertising to Brazil. Shein, which manufactures goods in Brazil for its Latin American markets, increased its digital ad spending 140% in April from a year earlier, in an effort to compete with Temu's entry into the market, Sensor Tower brand and digital analyst Kara Lee said.
Temu's ad spending in April was 800 times larger in Brazil this year than last year, when the company was ramping up advertising there ahead of its June 2024 launch.
Shein did the same thing when Temu entered the U.S. market in Sept 2022, Lee said. "My guess is that they're probably utilizing a similar strategy in Brazil as well."
(Reporting by Arriana McLymore in New York City; Editing by Sayantani Ghosh and David Gregorio)
Shein's ad spending rose 35% in France and the U.K.
The ban on de minimis has prompted Shein and Temu to cut digital ads in the U.S. while increasing their advertising in Europe.
Shein's app downloads increased by 25% month-over-month, while Temu's downloads more than doubled.
In addition to Europe, Shein and Temu are shifting some digital advertising to Brazil, with significant increases in ad spending there.
Experts suggest that Shein and Temu may struggle to gain as many customers in the U.S. due to the impact of Trump's trade policies.
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