Temu and Shein Target Europe as US Market Remains Too Big

Recommendation: Target Europe now with a clear, compliant strategy to secure first‑mover advantage in high‑potential markets. Build local fulfillment hubs, multilingual customer service, and transparent returns to convert curiosity into repeat orders. like this, retailers can stay focused on core assortments while the US remains the anchor and production stays centered in china.

According to coresight, Temu’s EU app growth outpaced most rivals in 2024, with double‑digit increases in new‑user signups across the UK, Germany, and France and a longer tail of repeat purchases in Poland and the Nordics. This momentum sets the stage for a faster expansion next year, especially in fashion and beauty segments where price sensitivity remains high, and commerce metrics show continued cross‑border appeal.

There are regulatory and product‑safety hurdles that require strict control of production. theres a need for traceable supplier audits in china and the option to nearshore in Europe for faster delivery. For retailers in europe, split sourcing into groups and ensure compliance for every region.

Each market differs in consumer norms, language, and regulatory obligations. In the most responsive regions, the next step is to tailor campaigns with local partners and to offer calibrated returns policies that reduce friction. This approach supports just in time replenishment while meeting EU labeling and privacy expectations.

theres an inevitable discussion around intellectual property and counterfeit controls that will shape next moves. Temu and Shein should implement robust product‑authentication, transparent pricing, and clear disclosures across EU stores to reduce refunds and protect brand value. This discipline aligns with retailers that want to stay ahead in a crowded field.

kluttig notes that the most durable strategy blends production diversification, EU regulatory alignment, and a two‑track go‑to‑market: a fast, Europe‑first push for high‑volume categories and a steady, quality‑assurance stream for niche lines. The approach keeps costs in check while sustaining growth for the longer term, with coresight data reinforcing the value of localized logistics and transparent disclosure.

Europe-focused expansion with US market constraints and contingency measures

Recommendation: Launch a europe-first pilot in june with EU-based warehousing to ship from the continent, focusing on Germany, France, Spain, and the UK. Establish 2-3 hubs in Amsterdam, Frankfurt, and Warsaw to cut last-mile times to 2-4 days and reduce cross-border fees. Source a mix of local and nearshore producing suppliers to keep prices stable and avoid import duties where possible. This approach also helps maintain fast turns and stability, which actually reduces complexity for teams and stores, while meaning a smoother status for the brand in Europe.

Contingency measures address US market constraints by maintaining EU-focused channels while preparing for potential policy shifts. Create a flexible sourcing plan that can switch to cheaper EU- or nearby-origin items, whichever offers better margins, and publish a clear store policy to reassure the community. chen, the founder, notes that the status of US policy could change; keep excess stock in EU warehousing to avoid cost spikes. Build two options: produce locally or import from nearby hubs producing goods; whichever path lowers pain in unit economics and sustain growth through platform partnerships and cross-store promos. This news commentary also highlights the existence of the pain in the current situation facing brands as the rise of EU demand grows.

Platform strategy emphasizes a multi-channel approach. Expand presence on the Europe versions of Temu and Shein, but also maintain dedicated store pages and pop-up events in major capitals. Use a community engagement model and regular news updates to explain pricing, delivery times, and product availability. Prices must stay competitive; whichever region shows strongest demand, replicate in others, and share learnings across platforms so the brand stays cohesive rather than fragmented. The commentary means this plan can adapt whichever market conditions change, and the mean price signals across platforms should guide adjustments.

Operational status and metrics guide decisions. Track ship times by hub, monitor inventory turns, and compare prices to local competitors. Aim for a 60-40 split between EU-store orders and cross-border orders, with june as a checkpoint for expansion to five markets (Germany, France, Spain, Italy, United Kingdom). Maintain transparency with customers through clear updates; dont let delays erode trust, and use real-time data to adjust campaigns and stock moves. Facing volatility in the US landscape, stay prepared for future shocks, which keeps the platform resilient and the community confident.

Localize assortment and sizing to fit European preferences

Launch a European-focused assortment and sizing grid now, with a March rollout in the top markets and a two-week pilot to calibrate fit. Align styles to EU sizing conventions, pin down dedicated warehouses, and set a clear inventory plan to reduce returns while boosting conversion.

Adopt a ground-level inventory split: Germany and France receive 40% of EU stock, Spain and Italy 25%, Benelux and Nordics 15%, and cross-border tests the remainder. Core silhouettes stay in EU sizes 34-40, with 42-50 reserved for extended fits to capture late entrants and new customers.

Test and refine sizing with localized fit data. Run a 4-week trial per SKU across three categories–tees, dresses, denim. Use a chen-led commentary loop to interpret returns by size and adjust fabric, cut, and grade rules to avoid kluttig fits, achieving an effective size translation across markets.

Manufacturing and footprint: partner with European manufacturing or nearshore suppliers to cut lead times and align with geopolitical risk. Increase local ground stock in key hubs and run occasional tax-free promotions to boost cross-border appeal; ensure late-cycle replenishment capacity is in place.

Marketing and measurement. Build localized product pages with size charts, model bust/waist/hip references, and country-specific returns policies. Track inventory-turn and size-level return rate, and adjust marketing messaging by market. Report regular news and results to the president and teams in angeles hubs; keep a tight cadence for march updates and possible shifts in demand.

Navigate EU data privacy and product compliance requirements

Start with a concrete step: map EU data flows for all channels and appoint a head of privacy who reports to the founder. Build an inventory of personal data categories, data subjects, and retention periods, and also maintain a kluttig file with the mapping. This helps retailers manage data they collect themselves across stores, e-commerce sites, and apps, and it could speed responses when consumers request access, deletion, or data portability.

Define lawful bases for processing and publish a concise privacy notice for uses in promotions and offers. Ensure cookie consent and provide opt-outs, and set expectations for data retention and the right to withdraw consent. Create a plain-language policy so consumers can understand how their data is used.

Document cross-border transfers, especially to suppliers in Turkey; use EU standard contractual clauses or an adequacy decision and keep a transfer log. This keeps data flows safe for partners while maintaining compliance across commerce and logistics.

Align product data with EU compliance: ensure labels, packaging, and manuals meet CE marking, RoHS, and REACH requirements; verify product specs in stores and on e-commerce listings are accurate. Maintain a status log for compliance checks and audits.

Strengthen vendor governance: require data processing agreements with processors, enforce robust access controls, encryption, and secure backups; monitor security incidents and maintain incident response playbooks; share policy updates with retailers and their teams.

Second, coordinate with the founder and tech teams to implement privacy-by-design in new features, including banners, consent tools, and data minimization in promotions. We suggest regular reviews to keep the file up to date as rules change, and they will support stores, partners, and consumers across e-commerce and brick-and-mortar commerce.

Area	Action	Owner
EU data privacy (GDPR)	Map data flows, build data inventory, define retention; implement DSAR process	Head of Privacy / Legal
Cookies & consent	Manage cookie banners, obtain opt-ins, allow opt-outs, publish notices	Privacy Team
Data transfers outside EU	Document SCCs or adequacy decisions; maintain transfer log	Legal / Compliance
Product compliance (EU)	Ensure CE, RoHS, REACH; verify labels and manuals across stores and e-commerce	Product Compliance
Vendor security & governance	DPAs, access controls, encryption, incident response; monitor	IT Security / Procurement
Supply chain (Turkey)	Validate suppliers, align product data, keep status updates	Supply Chain / Compliance

Set pricing and promotions with European payment methods

Set euro pricing and promotions with European payment methods to boost conversions immediately. Show prices in EUR across EU stores, include VAT where required, and keep the price visible and consistent for every shopper. This approach reduces friction at checkout and aligns with local expectations.

Pricing and currency alignment: Use EUR as the default currency for European stores, show VAT-inclusive prices, and maintain pricing parity across markets. Do this where possible to keep every price tag consistent and reduce confusion. March tests showed a lift when pricing was synchronized, and the June rollout extended coverage.
Promotions and exclusivity: Create limited-time, exclusive promotions for European customers. Use exclusively EU-specific campaigns, tie offers to local payment methods, and set a cap on redemptions to protect margins. This plays well with trust in European stores and keeps campaigns manageable.
Payment methods integration and safety: Integrate widely used European payment methods (iDEAL, Bancontact, Giropay, Sofort, eps, Klarna, Apple Pay, Google Pay) at checkout and enforce 3DS where required. A seamless, safe flow increases conversions and reduces stop-at-checkout drop-offs.
Onboarding and rules: Onboard European sellers with clear rules and guidelines, including currency setup, tax handling, and payout timing. Apply the same standards across shops to keep onboarding smooth and behind-the-scenes processes aligned.
Logistics and warehouses: Coordinate EU warehouses to shorten shipping times and reduce cross-border delays. Align promotions with local stock levels, and communicate stock status clearly to avoid longer delivery expectations for customers.
Monitoring and analytics: Initially roll out in a few EU stores; monitor pricing elasticity, conversion rate, and average order value. The March test and the June expansion came with actionable signals that help refine thresholds and update promotions accordingly behind the scenes.
Next expansion plan: After stabilizing EU pricing and promos, prepare for Vietnam next stores. Use learnings from European onboarding to speed up setup there and tailor pricing to local costs, payment habits, and currency needs.

Design cross-border logistics, shipping, and returns workflows

Implement a Europe-first cross-border hub network with Byrd for first-mile and EU carriers, backed by an API-driven routing layer that adapts to capacity and policy changes. Target two regional hubs in Germany and Poland to shorten EU last-mile to 1–3 days in major markets (DE, FR, ES, IT) and 3–5 days elsewhere. Precompute duties and use Delivered Duty Paid (DDP) at checkout to reduce post-purchase friction; align with current policy and rule changes across administrations. Build supply capabilities with multiple carriers and flexible resources; empower founder-led teams to reallocate assets quickly and maintain service levels even during disruptions.

Transparency on ETA, duties, and carrier status boosts conversion. Publish real-time delivery windows on product pages, provide earlier alerts if holds arise, and offer a clear returns policy. Use a geolocation-aware routing engine to reroute shipments during customs delays or geopolitical tension, and ensure policy updates remain visible to customers. Maintain current data feeds with carriers and customs authorities to keep transparency high across markets.

Returns workflow should be smooth and cost-efficient: prepaid EU returns labels, local EU return hubs, and automated restock decisions. Aim for 80–90% of restockable items to be back on shelves within 5 days of receipt; minimize reverse logistics costs by consolidating returns flows and using Byrd or regional partners for reverse legs. Define a greeven-style policy with clear refund windows, fraud checks, and cross-border eligibility rules; tie refunds to inventory status and provide retailers with clear metrics to compare models and turn policy into competitive advantage.

Establish brand localization, partnerships, and 24/7 customer support

Launch localized storefronts in France, Germany, Spain, and the United Kingdom within 60 days, including native-language pages, local currency pricing, and country-specific delivery options. The american company announced this approach to build trust with European shoppers and reduce checkout friction, aiming for a measurable return within the first year.

Commit to partnerships with regional fashion groups, e-commerce networks, and local logistics firms. Offer a tiered commission (15–20 percent on net orders) to attract local partners and accelerate adoption. chen leads international commerce and earlier pilots showed faster growth when local groups handle fulfillment and returns in their markets.

Localize product catalogs and content: adapt sizing, translations, and safety notes to each market; align promotions with local holidays; include local policy language on returns and refunds. Earlier tests indicated price and messaging adjustments lifted conversion by a meaningful percent, including currency differences and tax considerations.

Build 24/7 customer support with multilingual agents and regional coverage. Provide live chat, email, and phone support; target response times under 60 seconds for chat during peak hours. Establish a clear escalation path to specialists and ensure coverage across CET, UK, and Eastern European time zones; vietnam-based inquiries can be routed to the appropriate team, supported by a policy that keeps customers informed about possible delays and lasting satisfaction.

Metrics and savings: track percent of inquiries resolved on first contact, return rates, and CSAT across years. Announced targets include reducing handling time and increasing customer loyalty, creating savings that fund more aggressive price positioning and longer-term commitments to local service quality.

Temu and Shein Target Europe as the US Market Remains Too Big to Quit