In recent years, e-commerce has established itself as one of the most preferred shopping models by consumers. The main digital competition is led by the Chinese online fashion platforms Temu and SHEIN, where you can find any type of product you can imagine, including cheap clothes. With headquarters in Eastern countries, they lead the electronic commerce of low cost consumption, with very competitive low prices with any other web or physical store.
SHEIN and Temu
SHEIN has been the leading e-commerce brand in the sector, shipping worldwide. On the other hand, Temu was born in 2022 as an online sales platform for products of Chinese origin, offering technology, clothing, accessories, toys and many more products, also reaching all over the planet. Despite economic inflation and current uncertainty, it managed to become strong and find its place in the European market.
The Doctor of Economics and Professor at ESIC Business & Marketing School, Beatriz Irún Molina, stated “It’s not just about selling cheap. It is about understanding the consumer, and offering solutions to their needs”.According to the European Commission, they have tripled their shipments every year since 2022, with an average of 12 million packages per day and a total of 4.6 billion annually.
Presence in the EU
Both brands have gained ground to other digital commerce brands, positioning themselves better and better in the European markets. According to the European Commission, they have tripled the shipments every year since 2022, with an average of 12 million packages per day and a total of 4.6 billion annually. Michael McGrath, EU Commissioner for Democracy, Justice, the Rule of Law and Consumer Protection, stated that all companies entering the European market must comply with its regulations and standards in order to ensure consumer safety and product quality.
The EU takes action
Because of the growing threat posed by these marks, the EU has not stood idly by. It has taken action against online sales platforms and low-value shipments belonging to non-European companies. They propose to improve the monitoring of packages through more rigorous data exchange and risk assessment. In addition, they want to remove any duty exemption from packages with a value of less than €150. In addition, both SHEIN and Temu will face a fee of €2 as a result of these new control measures.
SHEIN vs. Temu
SHEIN managed to position itself as the leader of the online sales market in its sector, offering a wide catalogue of clothing, technology, cosmetics and a long etcetera. Since 2022, almost without realizing it, it began to loose strength due to the entry of Temu. The Doctor of Economics and Professor at ESIC Business & Marketing School, Beatriz Irún Molina, stated “It’s not just about selling cheap. It is about understanding the consumer, and offering solutions to their needs, and Temu is doing a great deal of that. Everything indicates that the platform bets on a clear positioning”.
For online shoppers in Spain, the order of preferences when buying online are more than defined; price, free shipping and ease of returns. Due to the economic instability and the blow of competition, SHEIN has been forced to raise its prices, so that Temu is getting better and better.
US tariffs
Both brands will not be able to spread the consequences of the tariffs imposed by Trump on China. A 145% increase in tariffs will affect this type of trade. Both electronic commerce applications saw a significant decline in sales after these tariffs came into force. Although they are now on standby, which has helped to recover some good figures again, which will have to manage to placate and not let it reflect it in its prices.
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