490Warning: Risks in the US market are rising!
In recent years, the US market has always been the first choice for Chinese cross-border sellers. Whether it’s the platform, logistics, advertising systems, or user habits, everything has been relatively clear.
However, by 2024, the situation is changing significantly. The US has canceled the $800 small parcel tax exemption policy, multiple rounds of tariff policies are frequently adjusted, and congestion and rising costs on the logistics side are occurring repeatedly...
Image source: Oriental Time and Space
These changes mean great uncertainty for brands relying on the US market, especially resulting in increasing financial pressure, customs clearance efficiency, and compliance risks.
Therefore, seeking a more stable market is a good decision. Europe is a region that has long been underestimated but is now rapidly maturing. As pointed out in YinoLink's "2025 European Market Trends and Overseas Marketing Guide Report," the European market is becoming the new focus for cross-border sellers.
Image source: YinoLink
"2025 European Market Trends and Overseas Marketing Guide Report"
Opportunities in the European market are gradually opening up
According to the report, Europe has a population of 740 million, and the overall GDP in 2024 reached $19.4 trillion, ranking third in the world, just behind the US and China.
The core four countries (Germany, France, Italy, Spain) have a per capita GDP of over $50,000, with strong overall purchasing power. By 2025, the e-commerce penetration rate in Europe is expected to reach 67.1%, with more than 586 million online shopping users, showing huge market potential.
Perhaps many people still think of Europe as having complex languages, cumbersome policies, and being difficult to operate, but the reality is much better than imagined.
For example, traditional major countries like Germany and France already have very mature e-commerce infrastructure, and consumers are highly receptive to online shopping; while Spain and Italy started later, their growth rates are very fast, reaching 13.5% and 14% respectively. Especially in Spain, among purchases of non-European goods, Chinese brands stand out, with food and cosmetics being particularly popular.
From the platform side, apart from Amazon, local European platforms like OTTO, Cdiscount, ManoMano also have stable user bases. Cross-border platforms such as SHEIN, TEMU, and TikTok Shop are accelerating localization, laying the foundation for Chinese brands to enter.
Image source: YinoLink
"2025 European Market Trends and Overseas Marketing Guide Report"
Marketing and user communication need to be more localized
Compared to users in Southeast Asia and the US, European consumers take longer to build trust in brands, and they pay more attention to the authenticity of content and cultural compatibility.
The report specifically points out that German users value the localization of advertising language, with over 60% saying that if a brand advertises in German, they are willing to switch from their original brand. French users, on the other hand, place great importance on product trials, sample experiences, and transparent shipping information.
This means that companies can no longer use US market templates for advertising, nor continue to use standardized materials for mass campaigns. Instead, they should use local languages, respect local customs, and create content based on local trends.
In terms of ad delivery structure, platforms like Meta and TikTok have high penetration rates in the four major European countries, and advertising costs are relatively controllable. For example, CPM in France is between 6-10 euros, in Germany it ranges from 10-45 euros, and mixed CPM across multiple European countries is only 5-15 euros, suitable for beginners to test products.
Image source: YinoLink
"2025 European Market Trends and Overseas Marketing Guide Report"
Compliance issues cannot be ignored, prepare in advance
Europe does have higher compliance thresholds than other regions, such as VAT numbers, packaging laws, data privacy protection, EPR policies, etc. But these policies all have clear standards and procedures. As long as you prepare well in advance and use mature service providers and tool systems, everything is manageable. More importantly, once a compliance system is established, the European market can provide more stable and long-term returns.
For example, Germany requires merchants to upload their packaging law registration number to the platform system, and France has extremely detailed requirements for VAT application materials. As long as you operate according to standards, not only will there be no problems, but you can also establish platform trust from the start.
Similarly, Spain’s NIF-UE and Italy’s 50,000 euro deposit system may sound complicated, but they are actually designed to connect with EU digital trade standards. Once you break through, you can quickly open cross-border channels.
Image source: TuKe Going Abroad
Product selection direction determines long-term competitiveness
The report also provides several product selection directions worth noting: outdoor functional apparel, POD customized clothing, home fragrances, beauty devices, and indoor gardening products.
These categories share a common feature—they meet personalized needs, allow for storytelling through content, and align with European consumers’ pursuit of quality of life.
Take POD as an example, the global market size is expected to reach $4.5 billion by 2025, with an annual growth rate of over 11%. Cultural T-shirts, anime IP, and loose hoodies are very popular among European Gen Z consumers.
In short, in a mature and rational consumer market, single discounts and short-term hot products can no longer impress users. Product selection must focus on usage scenarios, emotional value, and functional innovation from multiple dimensions.
POD customized clothing Image source: Internet
Conclusion: Europe is not a substitute, but the next main arena
In the past, when we talked about going global, we were always looking for windfalls and blue oceans. But after 2025, there will be fewer windfalls, and real opportunities will be hidden in high-quality, refined, and localized operational capabilities.
Europe is not a market for making quick money, but it is big enough, stable enough, and values long-term brand value.
For Chinese brands with supply chain advantages, content capabilities, and operational experience, Europe is not a substitute, but more likely to be the real main arena for going global in the future.
Now, it’s time to shift your focus from “where is easy” to “where is worthwhile”!
