Temu Grows Rapidly in Spain and Italy

Why It Matters

Temu’s rapid European uptake signals a shift toward low‑cost Chinese e‑commerce platforms, intensifying competition for incumbents like Amazon and prompting tighter regulatory focus under the DSA.

Key Takeaways

• EU monthly users hit 130 million, up 12 percent
• Spain and Italy each added ~2 million users
• Germany remains top market with 20.9 million users
• 38% Germans purchased from Temu, outpacing Shein
• Growth outpaces Shein’s 6.9% EU increase

Pulse Analysis

Temu’s latest Digital Services Act transparency report shows the platform serving an average of 129.7 million European shoppers each month in the second half of 2025, a 12 percent rise over the previous six months. The surge is driven largely by Southern Europe, where Spain and Italy together contributed roughly four million new users, pushing their monthly bases to 14.7 million and 14.9 million respectively. Smaller markets such as Hungary and Slovakia posted even higher percentage gains, underscoring Temu’s ability to capture demand across diverse economies despite its brief three‑year European tenure.

The growth trajectory places Temu ahead of fellow Chinese fast‑fashion giant Shein, which recorded only a 6.9 percent increase in EU monthly users, even though Shein still commands a larger absolute audience of 155.7 million. In Germany, Temu’s largest European market, 38 percent of consumers have placed an order, eclipsing Shein’s 21 percent and AliExpress’s 16 percent. This expanding consumer trust—despite lingering concerns over product quality and safety—suggests that price‑driven value propositions are reshaping purchase habits and challenging incumbents such as Amazon, which dominates logistics but lags in low‑cost apparel.

Regulators are watching closely as Temu’s rapid user acquisition triggers heightened scrutiny under the DSA, particularly around data handling, counterfeit goods, and consumer protection. For European retailers, the platform’s aggressive pricing and localized marketing raise the bar for digital commerce, prompting investments in faster delivery networks and AI‑powered personalization. Looking ahead, Temu’s ability to sustain double‑digit growth will depend on scaling logistics, navigating regulatory compliance, and converting first‑time shoppers into repeat buyers, factors that could redefine the competitive landscape of Europe’s e‑commerce sector.