E-commerce Giants Temu and Shein Enter Toy Market Amid Controversy

Fast-growing e-commerce sites Temu and Shein are expanding into the toy market as American and European shoppers seek deals on toys for Black Friday. Despite concerns about counterfeit products, these platforms attract more low-income shoppers and young European consumers, challenging toy manufacturers to monitor their offerings closely.

Fast-expanding e-commerce platforms like Temu and Shein are making inroads into the toy market as shoppers in the U.S. and Europe prepare for Black Friday deals. Both platforms, previously not known for toy sales, are now tapping into a market that saw $108.7 billion in global sales in 2023, according to Circana.

Concerns about counterfeit products have shadowed Temu and Shein's rapid growth. Mattel has cautioned against unauthorized sales of its products, despite listings for its toys on these sites boasting authenticity claims. Both platforms assert they have stringent measures to prevent counterfeit goods.

In Europe, young adults are increasingly buying toys from Temu, Shein, and AliExpress. U.S. toy makers like MGA Entertainment and Spin Master are wary of fakes on these sites but also see the potential to reach broader demographics. E-commerce dynamics are changing, and amid growing low-income shopper interest, these platforms are positioning as new rivals to traditional toy retailers.

(With inputs from agencies.)