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Market entry

UK, EU or US: where should a Chinese brand launch first?

For a Chinese brand going global, one of the first big decisions is where to start. The UK, the European Union and the United States are all large, wealthy, online-first markets, but they work very differently. Launching in the wrong one first can cost months and a lot of budget.

Here is how the three compare, what has changed recently, and how to decide.

The short answer

  • Start with the UK if you want a single, English-speaking market with a mature affiliate and publisher ecosystem where you can test, learn and build proof quickly.
  • Start with the US if you have the budget and operations for the biggest market, and your category is already proven there.
  • Start with the EU if your product has strong demand in specific countries, such as Germany or France, and you are ready to localise for each one.

The United Kingdom

Why it works as a first market:

  • Highly online. Internet sales made up 27.6% of all retail sales in Great Britain in May 2026, according to ONS data.
  • A mature affiliate industry. UK advertisers spent £1.10 billion on affiliate marketing in 2023, according to IAB UK and PwC, and the UK has a dense network of review sites, deal communities, cashback and loyalty platforms, and creators.
  • One language and one set of rules. English content you create in the UK can also be reused in other English-speaking markets.
  • A springboard. Results and reviews from the UK make it easier to win publishers in the US and Europe later.

What to watch: the UK is removing its £135 low-value import relief from customs duty. The government has said the change will come into force by October 2028 at the latest. Brands shipping low-value parcels directly from China should plan for UK warehousing or local fulfilment. Advertising rules are also strict: the Advertising Standards Authority treats affiliate content as advertising, and both brand and publisher are responsible for clear disclosure.

The United States

Why it is attractive:

  • Scale. The US is one of the world’s largest affiliate markets. US affiliate marketing spend passed US$10 billion in 2024 and is forecast to reach nearly US$16 billion by 2028, according to eMarketer.
  • Huge publisher and creator reach. The biggest review sites, deal communities and creators are US-based.
  • Big sales moments. Black Friday, Cyber Monday and Prime Day concentrate demand.

What to watch: the US ended its US$800 “de minimis” duty exemption for parcels from China and Hong Kong on 2 May 2025, and tariffs on Chinese goods have changed repeatedly. Most brands now need US inventory and a clear view of landed costs. Competition is intense and customer acquisition costs are high, so budgets need to be bigger. Affiliates must disclose relationships clearly under Federal Trade Commission guidance.

The European Union

Why it is attractive:

  • A large single market of 27 countries with harmonised product and trade rules.
  • Strong local publisher ecosystems in markets such as Germany, France, the Netherlands, Spain and Italy.
  • Less crowded categories in some countries, where early movers can build share.

What to watch:

  • Language and localisation. “Europe” is really many markets. Each needs local-language content, customer service and often different partners.
  • Product safety compliance. Since 13 December 2024, the General Product Safety Regulation (GPSR) has required an EU-based economic operator responsible for each product, and online listings must show manufacturer and safety information.
  • Customs changes. The EU has ended duty-free treatment for low-value parcels. From 1 July 2026, goods in consignments worth less than €150 face a flat €3 customs duty for each item, as a temporary measure until permanent rules take effect.

Side-by-side comparison

UKUSEU
LanguagesOne (English)One (English)Many
Affiliate maturityVery highVery high, very large marketHigh, varies by country
Budget neededModerateHighModerate per country
Key complianceASA/CAP disclosure, UK product safetyFTC disclosure, tariffsGPSR, local advertising rules
Recent import change£135 relief ending by October 2028De minimis ended for China, May 2025€3 duty per item under €150, July 2026
Best forTesting and building proofScaleCountry-by-country growth

Five questions to decide where to launch first

  1. Where is demand for your category already strongest? Check search volumes, marketplace bestsellers and competitor activity by country.
  2. Where can you deliver quickly and handle returns? Local stock is increasingly essential in all three markets.
  3. How much can you invest before results arrive? The US rewards scale; the UK is cheaper to test.
  4. Can you localise properly? If not yet, stay in English-speaking markets first.
  5. Are your products compliant? Labelling, safety and responsible-person rules differ by market.

Why affiliate is a smart way to enter any of them

Whichever market you choose, affiliate marketing lets you launch with trusted local voices and pay for results, which keeps risk low while you learn. Read why affiliate marketing is the smartest way to enter a new market and our step-by-step launch playbook.

Red Thread helps Chinese brands choose their first market and launch with the right publishers and creators. See our services or book a call.

Go deeper on each market: see how we help Chinese brands grow in Europe and the US, or follow our step-by-step guide to launching an affiliate programme in Europe.

FAQs

Is the UK a good market for Chinese brands?

Yes, for many categories. It is highly online, has a mature affiliate ecosystem and is a single English-language market, which makes it a practical place to test and build proof before expanding.

Should I launch in the US or Europe first?

If you have the budget and US operations, the US offers the biggest prize. If you want to learn at lower cost, start with the UK or one or two EU countries where your category is strong.

Do I need a company or representative in the EU?

For most consumer products, yes. Under the GPSR, products sold in the EU need an EU-based responsible economic operator. Take specialist advice for your products.

This article is general information, not legal or tax advice. Rules and tariffs change often; check the latest position for your products.

Sources