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 was 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.
She said the two companies are now focusing on retaining the American shoppers they already have, a counter to their new international digital advertising strategies. Advertising in the UK 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.
Temu's daily average U.S. ad spending on Facebook, Instagram, TikTok, Snap, X and YouTube
average of 31% in the two weeks from March 31 to April 13 compared with the previous 30 days, Sensor Tower estimated.
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 September 2022, Lee said. “My guess is that they’re probably utilizing a similar strategy in Brazil as well.”
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