Timo and Xi are heading towards Europe as their business in America is severely damaged due to unfavorable commercial policies.
However, economic e -commerce applications, which were established by China, may not be welcome in its new target markets.
In recent weeks, complaints have been raised against Timo and Xi In in the European Union, accusing them of following hateful trade methods.
This comes at a time when the European Union is preparing a new fixed fee of Euroen on the previously exempt from customs from electronic platforms such as “Timo” and “XN”, according to a report published by the “CNBC” network and was seen by “Business”.
Experts say that the new developments may vow badly to the two platforms, as their actions have already suffered from the closure of the exemption of small parcels in America during May, in addition to new customs duties of 54%, or $ 100 for parcels sent by mail.
Anand Kumar, Assistant Director of Research at Corset Research, said: “With the increasing regulatory and commercial pressure in the United States, Timo and Shi are increasingly heading towards Europe and the United Kingdom as vital growth markets,” said Anand Kumar, Assistant Director of Research at Corset Research.
However, Kumar pointed out that the two companies started facing organizational difficulties in Europe and the United Kingdom, reflecting the scrutiny it faced in America.
He added: “The customs fees proposed by the European Union, amounting to 2 euros, are not just a simple additional fee, but rather a strategic organizational step aimed at reducing the uncontrolled growth of e -commerce across the extremely licensed border, and the way to make platforms such as” XN “and” Timo “in Europe during the next two or three years will be rehabilitated.
Timo and Xi have strengthened their advertising spending in Europe, especially in the United Kingdom and France, which reflects their departure from America.
The increasing importance of the European Union and the United Kingdom also reflected for the two companies in data from Consumer Research, which tracks consumer attitudes based on a sample of credit and deduction card information.
According to the data, consumer spending for Timo in the United States decreased by 36% in May compared to the previous year, while Xi NN spending by 13% during the same period.
The company added that its data shows that some “Timo” and “Xi” customers in America have turned their spending towards traditional major stores and fast fashion stores.
These trends are compatible with data from Sensor Tower for market analyzes, which show that the use of “Timo” and “XN” applications in the United States is significantly slowing.
However, adverse trends of the two platforms were observed in the UK and the European Union.
In May, consumer spending growth on an annual basis reached 63% in the European Union and 38% in the United Kingdom.
“XN” witnessed a 19% growth in the European Union and 42% in the United Kingdom during the same period.
For Timo, “Consiopmer Edge” data showed that growth was especially noticeable in the main market, France, the second largest economy in Europe.
To take advantage of the momentum in Europe, Timo and Xi expanded their operations vigorously throughout the region, including increasing warehouse capacity, experimenting with local business models, as well as a significant increase in spending on digital ads in major markets such as the United Kingdom, France and Germany, according to Kumar of Corset.
He said: “This expansion is not just an opportunity. Rather, it indicates a strategic shift in how these companies depict their next growth.”
He added: “However, the European market is not free of challenges. The region imposes tougher regulations on the safety of products, consumer protection and fair competition, all of which require Timo and Shi that investing more in compliance and operational transparency.”
Experts say these challenges, in addition to the possible customs duties imposed by the European Union on low -value parcels, may indicate more pressure on “Timo” and “Xi”.
According to the French local media, the “Fashion Control” bill, which is currently being discussed in the French National Assembly, was recently reformulated to target ultra -licensing platforms such as “XN” and “Timo”.
The draft law, which was approved by the French Parliament for the first time in March of last year, is seeking to punish rapid fashion products for their environmental impact.
Meanwhile, on Thursday, the European Consumer Organization (BeUC) filed a complaint with the European Commission against “Xi” because of its use of misleading methods, or “dark patterns” that cause excessive consumption.
This comes after the European Commission announced in February its own investigation into the compliance of Xi that the Consumer Protection Law in the European Union, and in May, “Xi” urged to respect the laws of consumer protection in the Union.
The group reported that the European Companies Union (BeUC) filed a complaint against Timo, while 17 of its members submitted the same complaint to their competent national powers.
Xiaoming Lu, director of geological technology at the Eurasia Group, said the recent audit faced by “Timo” and “Xi” in the European Union is reminiscent of auditing in the United States.
“Timo” and “XN” offer costly costly solutions and an effective supply network that achieves a good performance in the rapidly development world.
However, work practices and human rights standards may not fully comply with high -value markets such as the European Union and the United States, Lu said.
She added that this conflict and “the escalation of protectionism” globally are “the main engines of these organizational responses.”
In America, officials also objected to “Timo” because of its alleged compliance with the UFLPA compliance law, which prohibits the import of goods made using forced work from the Chinese region of Xinjiang.
According to Kumar from “Corset”, Europe, for its part, is heading towards strict censorship by directing due care in the field of corporate sustainability – which is in front of the European Union’s member states until July 2026 for its integration into its national laws.
This guidance will be obligated by companies operating in the European Union to determine human rights violations in their supply chains and reduce them, and to disclose the standards of environmental impact and sustainability, and to face legal consequences for not taking sufficient preventive measures.
Kumar stated that this means that “Timo” and “Xi In” will face strict compliance requirements in the European Union.
However, he added that the region still provides promising opportunities to expand in a global trade environment in which protectionism is increasing.
