Like Temo, it revolves to Europe, they again meet regulatory control

Temu and Shein are heading to Europe as their business in the United States is taking a big hit of adverse commercial policies. But China’s justified e -commerce applications may not receive a warm admission to their new target markets.

In the last weeks, complaints have been filed against the Temu and Shay in the EU, blaming them in Uncomfortable business tacticsS This comes as the block prepare A new two euro fee fixed to small packages without customs manufacturers from online markets such as TEMU and Shein.

Experts say new developments can be sinister platform signs, as their business has already been injured in closing a small release from tariffs for packages in the United States, as well as new debt of $ 54% or $ 100 for the post office.

“As regulatory and commercial pressure are intensifying in the United States, the Temo and Shane are increasingly turning to Europe and the United Kingdom as critical growth markets,” Anand Kumar, an associate director of research at Coresight Research, told CNBC.

However, Kumar said companies began to face regulatory winds in Europe and the United Kingdom that sounded the control they had met in the United States

“The offered customs fee in the EU is more than a minor allowance-it is a strategic regulatory move aimed at limiting the unauthorized growth of the super-cheap cross-border e-commerce and can reshape how platforms such as Shane and the Temo work in Europe over the next 2-3 years,” he added.

TEMU and Shein have intensified their costs for ads in Europe, especially in the UK and France, according to a report by Reuters, reflecting their change from the United States

The increasing importance of the EU and the United Kingdom for the two companies is also reflected in Consumer Edge Research data, which track users’ trends based on a sample of credit and debit card information.

According to the data sent to CNBC, the TEMU consumer costs in the United States fell about 36% in May compared to a year earlier, while Shane fell 13% over the same period. The company added that its data shows that some of the US Temu and Shein customers have directed their costs to hereditary universal stores and fast retailers.

These trends match Sensor Tower Data of the Market Intelligence Company Showing this use of Temu and Shein applications in the US is significantly slowed down.

However, the reverse trends for platforms have been observed in the UK and the EU. In May, consumer costs during the year reached 63% in the EU and 38% in the United Kingdom, Shane had an increase of 19% in the EU and 42% in the UK for the same period.

For TEMU, consumer edge data show that growth is particularly pronounced in the key market of France, the second largest economy in Europe.

To take advantage of inertia in Europe, the theme and Shane aggressively expand their operations throughout the region, including an increase in warehouse capacity, experimenting with localized business models, as well as a significant increase in digital advertisements in key markets such as the UK, France and Germany, according to Kumar.

“This expansion is not just opportunistic – it signals a strategic change in how these companies anticipate their next phase of growth,” he said.

“This said that the European market is not without its challenges. The region applies more provisions on product safety, consumer protection and fair competition, all of which require TEMU and Shein to invest more in observance and operational transparency,” he added.

Experts say these challenges and potential EU duties on low -value packages may be signs of more pressure that is forthcoming For Temu and Shay.

According to French local mediaThe formulation of the anti-fast fashion bill, which is being discussed in the French National Assembly, has recently been rewritten to separate ultra-cheap platforms such as Shane and Themis.

The bill approved for the first time by the French lower house of French Parliament last March seeks to penalize the rapid fashion products for their environmental impact.

Meanwhile on Thursday, the pan -European consumer organization Beuc submitted a complaint With the European Commission against Shane for the use of fraudulent techniques or “dark models” that cause over -consumption.

This comes after the European Commission announced its own investigation into the observance of the EU Consumer Act in February and in May, summoned It should comply with EU users protection laws.

Book has Alsa filed a complaint Against the TEMU, while 17 of its members filed the same appeal to their competent national authorities, the group said.

Xiaomeng Lu, director of geotechnology at Eurasia Group, told CNBC that the most the Temu and Shane are experiencing in the EU, reminiscent of this in the United States

“(Temu and Shein) offer profitable solutions and an effective supply network that do well in the fast -moving fashion world. However, their labor practices and human rights standards may not be completely aligned with high -value markets like the EU and the United States,” Lou said.

This conflict and “growing protectionism” worldwide are “key engines of these regulatory reactions,” she added.

In the US, officials had also taken a problem with the topic for him alleged non -compliance With the Law on Forced Labor Prevention, Uyghur (UFLPA), which prohibits the import of goods made with forced labor from the region of Sindzian to China.

According to Kumar of Coresight, Europe, in turn Directive to properly check corporate stability – which EU Member States have until July 2026 to integrate into their national laws.

The Directive would force companies to work in the EU to identify and mitigate human rights in their supply chains, to reveal environmental and resistance impact indicators, and to face legal consequences in order not to take adequate preventive steps.

This means that the Temu and Shay will face strict requests for compliance in the EU, Kumar said. However, the region still offers meaningful opportunities for expanding in an increasingly producing global commercial environment, he added.