As the 2024 holiday shopping season approaches, Temu and Shein are making significant strides into the toy market. In 2023, U.S. toy sales reached an impressive US$108.7 billion, prompting both companies to capitalize on this lucrative sector. Shein has reported double-digit growth in its toy sales year-on-year, while Temu's share of U.S. holiday shoppers purchasing gifts has risen from 9% to 13%. This increase reflects a broader trend of rising credit card spending on both platforms compared to the previous year. [4ff33464]
In Europe, 39% of consumers have purchased toys from Temu, Shein, or AliExpress in 2024, indicating a growing acceptance of these platforms for toy shopping. To attract more sellers, Shein is waiving fees for new sellers for the first three months, while Temu has opened applications to all U.S.-based sellers, further enhancing its market presence. [4ff33464]
However, concerns about counterfeit toys remain prevalent, with companies like MGA Entertainment and Spin Master raising alarms over potential intellectual property violations. MGA Entertainment's CEO, Isaac Larian, is considering selling on these platforms, highlighting the ongoing tension between expanding e-commerce and protecting brand integrity. [4ff33464]
As both companies delve deeper into the toy market, they face scrutiny regarding their compliance with safety standards and the authenticity of products sold. The expansion into toys not only diversifies their offerings but also positions them to compete more aggressively in the holiday shopping landscape. [4ff33464]