Despite the rising popularity of Shein and Temu, MGA, like other toy makers, has concerns about so-called "dupes," or fakes on both sites, particularly of its new Miniverse brand, named a top toy for the holidays by Walmart, Amazon and Target, Larian said.

Fast-growing specialty e-commerce sites such as PDD's Temu and its rival Shein are branching deeper into the business of selling toys.

In previous years, Temu and Shein – which sell primarily from smartphone-based apps – would not have been the usual places for shoppers to buy toys and other holiday gifts. The sites face concerns from regulators and US-based consumer product makers about fakes and counterfeits.

Heavy online marketing spending by Temu and Shein is making it more costly for other retailers and brands to reach shoppers on Black Friday, marketing and industry experts say, with both platforms bidding heavily on search keywords used by competitors.

The e-commerce giants saw sales jump in the first half of November, while shoppers spent slightly less at major US retailers.

Both Temu and Shein have adopted aggressive marketing strategies, targeting their rivals’ keywords to outrank them in search results. This tactic increases their visibility and diverts potential customers from competitors.