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Specialty E-Commerce Sites Expand into Toy Market Ahead of Black Friday
NEW YORK – With the Black Friday shopping frenzy approaching, emerging e-commerce platforms like PDD’s Temu and its competitor Shein are enhancing their product offerings to include a wider selection of toys. Traditionally not the go-to destinations for holiday gifts, these apps are now positioning themselves as major players in the consumer market.
Temu and Shein, primarily known for their low-priced household goods and fashion items, are taking steps to capture a share of the lucrative toy market, which generated $108.7 billion in sales globally in 2023, as reported by market research firm Circana. These platforms are often likened to digital “dollar stores,” providing shoppers with affordable, unbranded options for various products.
According to a spokesperson from Shein, toys represent one of the fastest-growing segments within their inventory, with sales volume seeing significant year-over-year growth. Temu has also reported increased interest in toy searches as holiday shopping heats up.
Despite the rise of these specialty platforms, traditional retailers like Amazon, Walmart, and Target continue to dominate the toy market, accounting for nearly 70% of U.S. toy sales, as noted by Linda Bolton Weiser, a research analyst at D.A. Davidson. However, a Kantar study indicated that a growing percentage of U.S. holiday shoppers plan to buy toys on Temu, increasing from 9% last year to 13% this year. Credit card spending data from Facteus also shows a rise in online purchases through these platforms compared to 2023.
The shift Toward Temu and Shein has not gone unnoticed by established toy manufacturers. Companies like MGA Entertainment, which produces L.O.L Surprise! dolls, are exploring partnerships with these e-commerce sites to broaden their consumer reach. MGA CEO Isaac Larian emphasized the importance of accessibility, stating the company’s desire to connect with a diverse range of customers across income levels.
As inflation continues to pressure low-income shoppers, platforms like Temu and Shein are increasingly attractive for budget-conscious consumers. Data from Bank of America suggests that a larger demographic of online shoppers, particularly those earning less than $50,000 annually, are turning to these sites for competitive pricing.
In Europe, younger consumers aged 18 to 34 are also gravitating towards these platforms for toy purchases. A Circana study found that 39% of European shoppers have bought toys online from sites like Temu and Shein since January of this year, with that figure rising to 60% among younger consumers.
Concerns Over Intellectual Property
However, not all news is positive. Concerns persist regarding counterfeit products sold on both Temu and Shein. For instance, Mattel, the maker of Barbie dolls, does not authorize sales to these platforms, yet some of their products have appeared on the sites without permission. A Shein representative stated that suppliers must attest that their products do not infringe on intellectual property and are not counterfeit.
In response to inquiries from Reuters about unauthorized listings, a Temu spokesperson indicated that the company promptly removed the products in question and is conducting an ongoing investigation. Efforts are also underway to implement stronger oversight of product listings to ensure compliance with intellectual property laws.
Distributors like Popmarket are starting to take advantage of the lower fees offered to sellers on these platforms. Popmarket’s CEO, Jeff Walker, noted an unexpected increase in sales of popular toy lines such as Funko Pop and Hasbro action figures through Shein. The appeal of reduced selling costs has led many toy manufacturers to consider expanding their presence on these platforms.
Nonetheless, concerns about counterfeit products persist. MGA’s Isaac Larian expressed alarm over potential knock-offs from unauthorized sellers, particularly for their newly launched Miniverse brand, which has been highlighted by major retailers as a top holiday toy. Additionally, Spin Master has flagged issues with imitations of their products appearing on these sites, raising concerns over safety and quality standards.
As the holiday shopping season approaches, the evolving landscape of e-commerce in the toy market raises important questions about consumer safety, intellectual property, and the future of traditional retail. Mark Carson, president of Fat Brain Toys, remarked that while the surge in popularity of Temu and Shein is noteworthy, careful consideration is necessary before they commit to selling on these platforms.
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