Global toy sales are experiencing a major shift. According to Circana, the global market for toys will reach $108.7 Billion in 2023. Shein and Temu are fast-growing platforms known for offering ultra-low-priced goods and a wide selection, mainly unbranded, and they have aggressively expanded into the toy market, taking advantage of the lucrative holiday season.
D.A. estimates that the US market is dominated by established companies like Amazon, Walmart and Target (which hold nearly 70% according to D.A. Linda Bolton Weiser, a Davidson analyst, says that Shein and Temu have been gaining ground rapidly among consumers who are on a budget.
Shein Temu market share is growing
Shein is known for affordable clothing, but its toy sales have grown by double digits year over year.
Temu has seen a spike in searches for toys.
Kantar data shows that this year 13% of US shoppers will be purchasing gifts from Temu, an increase from just 9% from 2023.
Facteus data confirms this trend by showing an increase in US credit cards spending this month, compared with last year.
Even major toy makers are influenced by the influx of customers to these platforms.
MGA Entertainment is the original creator of L.O.L. Surprise! Surprise!
The decision highlights that these platforms are increasingly popular with budget-conscious consumers, especially those who earn less than $50,000 per year. This demographic has been significantly affected by the rising prices of consumer goods since 2021 according to Bank of America’s credit card data.
According to Circana’s September survey, European markets are showing a similar pattern, especially among 18 to 34-year-olds from France, Germany Italy Spain and the UK. 39% of these consumers have purchased games or toys on the platforms in question since 2024.
A counterfeit scandal
The rapid rise of Shein in the toy industry has not been free from controversy.
There is a growing concern about counterfeit products and unauthorised goods.
Mattel, which makes Barbie, has confirmed that it doesn’t sell directly to these platforms, and neither are its distributors authorized to. This was reported by Reuters.
Although listings for Mattel Uno cards and Hot Wheels Cars on Shein claimed authenticity, this raises questions regarding intellectual property and product validity.
A Shein spokesperson responded to these concerns by telling Reuters that the suppliers must certify their products’ authenticity and ensure they are not infringing. They also have a team dedicated to ensuring compliance.
Temu removed all the products after it received inquiries about the Uno listings. They also launched an investigation. This was part of the “standard operating procedures” for products that are suspected to be non-compliant or the subject of complaints.
You can address concerns
Even though there are many opportunities for counterfeit goods, especially “dupes” or imitation products, the problem persists.
Isaac Larian is the CEO of MGA Entertainment. He expressed concern about fake versions and unsafe copies.
Spin Master also expressed concerns over counterfeit versions of “Ms Rachel”, its doll, on Temu. They highlighted the lack of testing safety for these knockoffs.
Temu replied that it had investigated the products and taken them off after being notified by Spin Master.
Mark Carson, president of Fat Brain Toys, is still hesitant and prefers to wait to see how things develop before making a decision to sell through these platforms.
As new information becomes available, this post Counterfeit fears cloud Shein’s and Temu’s rapid growth on the toy industry may be updated.
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