Fast Five Shorts | SHEIN And Temu Are Making Inroads On The Toy Market
In the latest edition of Omni Talk’s Retail Fast Five, sponsored by the A&M Consumer and Retail Group, Avalara, Mirakl, Ownit AI, and Ocampo Capital Chris Walton and Anne Mezzenga discuss SHEIN And Temu Making Inroads On The Toy Market
For the full episode head here: https://youtu.be/JwnJXUy6y20
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Transcript
Shein and Temu have branched further into the toy market.
Speaker A:According to Reuters, both Temu and Shein are looking to win a bigger slice of the global market for toys, which fuel sales for retailers during the holiday season.
Speaker A: billion in sales globally in: Speaker A:At Shein, which became popular selling $5T shirts and ten dollar sweaters, toys are one of the fastest growing categories.
Speaker A:A spokesperson for the site said toys have seen double digit percentage growth in sales volume on Shein's platforms year over year.
Speaker A:TEMU also said it is seeing an increase in searches for toys by prospective shoppers.
Speaker A:So both Shein and Timu, however, some companies like Barbie maker Mattel, do not sell directly to TEMU or Shein and its distributors are not authorized to do so, according to a Mattel spokesperson.
Speaker A:Chris, where do you land on this?
Speaker A:Are you concerned at all about TEMU and Sheen selling toys?
Speaker B:This might surprise people.
Speaker B:I'm actually not at all concerned about it.
Speaker B:You know, I don't think it's a big issue, honestly.
Speaker B:I think this is the future.
Speaker B:I think this is where things are headed.
Speaker B:Anne and the reason I say that is the beauty of Shein and Temu is that they give access to products to a lower income demographic via their technology platform.
Speaker B:They're essentially using technology to reach new consumers.
Speaker B:That's the beauty of what their platforms do.
Speaker B:And I would add, I actually think the toy companies should jump into this relationship because they could actually sell their products direct from factory at more profit than doing it themselves in the States and thereby counteract the dupe factor more overtly.
Speaker B:That's what I think.
Speaker A:Right?
Speaker B:Because the key point to this headline, and this is what it always comes back to, Ann, the key point to this headline is that people are searching for these products on these platforms, which means people want to buy them from them.
Speaker A:Right?
Speaker B:So it's, so it's time to get on board.
Speaker B:And Sheen and Temu, you know, they give you an advantage.
Speaker B:And the other point about this, which I've talked about on the show, you're never going to be out of stock on toys with your consumer and consumer ever again.
Speaker B:That's what this technology allows you to do and that's how you can extend your reach and your relationship with your customer.
Speaker B:Never out of stock again.
Speaker B:Let that statement sink in.
Speaker B:Because if you think about it and you design it the right way, that can happen.
Speaker B:And in the long run that also means, because this is the, this is where this is where we are today, you know, low price.
Speaker B:But in the long run, that will allow the toy manufacturers or anyone else that wants to participate on the Sheen and Temu platform to eventually place their products at a price premium, even though the play is at the opposite end of the spectrum right now.
Speaker B:Like, you can get this special GI Joe toy direct from factory whenever you want.
Speaker B:You got to wait a little bit longer, but hey, it's there for you whenever you want it.
Speaker B:We'll make it for you.
Speaker B:Done.
Speaker B:That's the beauty here.
Speaker B:And I can't wait for people to get, get that idea or that punchline, the joke and see what happens.
Speaker A:Yeah, I mean, I think that the key point here is that you're opening up your brand to more consumers.
Speaker A:Not just more consumers in the US but more consumers around the world and more consumers in different, across different socioeconomic backgrounds.
Speaker A:And I think that that's the, that's the key thing here.
Speaker A:You're, you're allowing more people to access your product.
Speaker A:And I don't see what, what the issues could be with that.
Speaker A:And, and really, I think what you're doing is you're putting that premium on how soon you want to get it.
Speaker A:Like, sure, yeah, if I want to go to Walmart tomorrow and I want to pick up that GI Joe toy, like, yeah, it's going to cost you twice as much.
Speaker A:But if, if you're willing to wait, you're willing to plan ahead like we all used to do, and you can wait for that same product to come from the same factory and wherever it's being made overseas, that, that there are people that will do that.
Speaker A:And I think that way you're just putting, you're putting the premium on convenience.
Speaker A:You're not putting the premium on access to your products.
Speaker A:And so that's, that to me makes the most business sense for these toy companies.
Speaker A:And I think it's going to be potentially troublesome for Walmart and Amazon and Target too, in the future if, if, if these toy makers can open this or the manufacturers open up to new selling platforms like Timu and she into.
Speaker B:Yeah, right.
Speaker B:They said they have, like those three retailers have 70% of the toy market, if I remember right.
Speaker B:Anne.
Speaker B:Right, right.
Speaker B:Yeah.
Speaker B:I mean, the interesting about this, like, with all the advances in technology right now and like, couldn't you, as Mattel say, like, couldn't you go to Sheen and be like, look, if you could promise me that you can use computer vision technology and AI technology to make sure that none of my Barbies appear on your site.
Speaker B:I will give them to you.
Speaker B:Right?
Speaker A:Yeah.
Speaker B:And that's what I.
Speaker B:That's what.
Speaker B:That's the deal you have to make with me.
Speaker B:I would think Sheena Timo would jump at that opportunity to do that and make sure that that was happening for them, because that's.
Speaker B:There's just a lot of opportunity there, when you think about it that way.
Speaker A:Yeah, you would think.
Speaker A:I mean, that's the number one thing that I feel like in researching this story.
Speaker A:Like, there's a lot of these toy makers who are still claiming, like, look, there's toys on there right now that are copies of mine.
Speaker A:And then they get taken down.
Speaker A:But then the onus is on.
Speaker B:The probably are on Amazon too, Right?
Speaker A:Exactly, Exactly.
Speaker A:I mean, I think this is.
Speaker A:This.
Speaker B:This was always a problem.
Speaker A:It's happening in the dollar stores.
Speaker A:Like, yeah, you have fall off.
Speaker A:Instead of Olaf being sold, like, what are you gonna do?
Speaker A:You're gonna.
Speaker A:Like, are you gonna go into every Dollar tree store?
Speaker A:You.
Speaker A:You had somebody on that.
Speaker A:But, you know, like, this is just the cost of doing business, I think, but at the.
Speaker A:At the potential for so much more business to be done if you can expand to these platforms.
Speaker B:But.
