Shin and Temu icon on a phone screen.
Jakub porzycki | Nurphoto | Getty images
Temu and Shin are pivying in Europe as their business in America takes a big hit from adverse trade policies. But the budget e-commerce apps established by China cannot be warmly welcomed in their new target markets.
In recent weeks, complaints have been filed against Temu and Shin in the European Union, accusing them Unnatural trading strategyIt comes as a block Ready A new two-euro flat fee on pre-customs-free small packages before online marketplace such as Temu and Shin.
Experts say that new growth may be inauspicious signs for platforms, as their business is already suffering from the shutdown of a small package tariff discount in the United States, as well as new duties at 54% or $ 100 for those sent through postal service.
CNBC said, “As regulatory and trade pressure in the US intensifies, Temu and Shin are rapidly transforming Europe and UK as important development markets,” Anand Kumar, Associate Director of Research at CORESHT Research, told CNBC.
However, Kumar said that companies have started facing regulatory headwinds in Europe and Britain that resonate the investigation he faced in the US.
He said, “The proposed € 2 customs duty of the European Union is more than a slight surcharge-a strategic regulatory step that aims to curb the uncontrolled growth of ultra-sell-slap cross-border e-commerce, and can re-prepared how platforms like Shin and Temu are operated in the next 2-3 years.”
Europe Pivot
Temu and Shin have promoted their advertising expenses in Europe, especially in the UK and France, according to A. Report From Reuters, reflecting his innings away from America
The increasing importance of the European Union and Britain for two companies is also reflected in the data of consumer age research, which detects consumer trends based on samples of credit and debit card information.
According to data sent to CNBC, the consumer spending of Temu in the US year-to-year fell nearly 36% in May, while Sheen fell 13% in the same period. The company said its data shows that some American customers of Temu and Sheen have shifted their expenses to the heritage department stores and fast fashion retail vendors.
Coincides with those trends Data from market intelligence firm censor tower In the US, the use of Temu and Shin’s app is slowing down quite slowing.
However, in the UK and the European Union, trends were seen unlike platforms. In May, an increase in consumer spending from year to year reached 63% in the European Union and 38% in the UK Shin and in the same period the UK experienced a 19% and 42% increase in the European Union.
For Temu, consumer edge data showed that development was pronounced especially in France’s second largest market, Europe’s second largest economy.
To capitalize on speed in Europe, Temu and Shin are aggressively expanding their operations throughout the region, including increasing the capacity of the warehouse, using with local business models, as well as increasing digital advertising expenses in major markets such as UK, France and Germany.
“This expansion is not only opportunistic – it indicates a strategic change that these companies imagine their next stage,” he said.
He said, “The European market is not without its challenges. This area implements strict rules on product safety, consumer protection and fair competition, all of which need to invest more in compliance and operational transparency to the Temu and Shin,” he said.
Experts say that those challenges and small value packages may indicate more pressure to get into possible duties of the European Union. For Temu and Shin.
Investigation intensifies
As French local mediaA “Anti-Fast Fashion” Bill word, which is under the scope of debate in the French National Assembly, was recently written to single out ultra-chest platforms such as Sheen and Temu.
The first approved by the Lower House of Parliament in March last year wants to punish fast-fashion products for its environmental impact.
Meanwhile, on Thursday, PAN-European Consumer Organization BeUC filed Complaint With the European Commission against Shin on its use of misleading techniques, or “dark patterns” that causes overgrowth.
After the European Commission announced its investigation by the European Commission in compliance with the European Union Consumer Act in February, in May, in May, Firmly request Shin to honor the European Union’s Consumer Protection Laws.
There is also beQ Complaint filed The group lodged a single complaint against Temu, while 17 of its members with their competent national authorities.
Xiaomeng Lu, director of Geology at Eurasia Group, told CNBC that the latest scrutin Temu and Shin are experiencing in the European Union
,[Temu and Shein] Offer a cost -effective solution and an efficient supply network that rent well into the fast moving fashion world. Although their labor practices and human rights standards cannot be fully align with high price markets such as the European Union and the US, Lu said.
He is the lead driver of these regulatory reactions “globally”, “he said.
In America, officials also raised the issue with Temu Alleged non-transportation Uingur forced the Labor Prevention Act (UFLPA), which prohibits the import of goods made with forced labor from the Xinjiang region of China.
According to Kumar of Coresight, Europe is progressing towards strict oversite through its share, for its share Corporate stability payable instructions – European Union member states have to integrate in their national laws by July 2026.
The instructions will force companies working in the European Union to identify and reduce human rights violations in their supply chains, reveal the environmental impact and stability matrix and face legal consequences to fail to take sufficient preventive steps.
This means that Temu and Shin will face strict compliance in the European Union, Kumar said. However, the region still rapidly provides meaningful opportunities for expansion in the conservationist global trade environment, he said.