Toys And Games in Argentina
Euromonitor International's Toys And Games in Argentina report offers a comprehensive guide to the size and shape of the traditional toys and games and the video games market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market- be they new product developments, distribution or pricing issues. Forecasts illustrate how the market is set to change.
Tables: 38 | Publication date: Sep 2006
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- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Executive summary
Another year of strong recovery, after having it hard
Sales of toys and games sales registered a strong improvement in 2005, for the third year in a row. The country’s economic recovery after the worst crises of its history has had a strong positive impact on almost every area of the market.
Activity and construction sets and indoor games displayed excellent performance. Sales of games for infants and pre-school children also grew, becoming star performers among light industrial products in 2005. Their sales are continuing to grow, and have not yet reached their ceiling.
Better quality and lower prices spur growth
Supermarket aisles and specialist toy shops are now packed with good-quality products at accessible prices. The demand has grown on account of changes in consumption patterns and an improvement in consumers’ purchasing power. After several years of economic crises, and consequent irritation, millions of consumers used loans to stop buying low-quality products. Nonetheless, much of the population continues to live in poverty, without access to entertainment products.
The improvement in the sales index, while partly due to inflation, also reflects the effects of incorporating technological elements and value added. This applies to both imported and domestically produced toys.
A battle unleashed between local producers and importers
During the 1990s, the Convertibility Law that dictated parity between the peso and the dollar effectively destroyed the local toys and games industry in the face of competition from imports. The currency devaluation enabled domestic producers to reopen their factories for new production, so they came to enjoy a strong position relative to foreign companies, and even made plans for future exports. In 2005, this process was aided by protectionism, as the government sought to apply new barriers to imported products.
Imported goods returned to the shops in 2005, however, at the behest of the multinational Mattel and the local importer Ditoys, which was in part on account of their greater ability to cater to the growth in demand for high-quality products. Meanwhile, local producers were unable to broaden their offer immediately and are now seeking finance to re-equip and upgrade their factories.
Distribution in the limelight
Following significant market growth and the re-establishment of domestic production, distribution is becoming a key issue for industry leaders. The market is maturing and diversifying, and new distribution channels were becoming established in 2005. The reactivation of sales throughout the country led to an expansion of Internet sales and the establishment of specialist retailers for the audio-video sector, which affected the distribution patterns for toys and games. Specialist toy shops nevertheless maintain their traditional leadership position.
No one wins when piracy is dominating the market
The extremely high piracy rates that characterise the Argentine market have not prevented the growth of the market as a whole, but they have effectively destroyed the market for video games. Nintendo decided to withdraw its official representation in the country in 2005, while Microsoft and Sony maintain representation for the sale of other products or services, but without innovating in the local video games market or importing their own products. At the same time, the popularity of consoles continues to grow and this demand is met by smaller importers. PC video games have also maintained their strong performance and are starting to recover lost ground.
Table of contents
TOYS AND GAMES IN ARGENTINA : MARKET INSIGHT
EXECUTIVE SUMMARY
Another year of strong recovery, after having it hard
Better quality and lower prices spur growth
A battle unleashed between local producers and importers
Distribution in the limelight
No one wins when piracy is dominating the market
KEY TRENDS AND DEVELOPMENTS
Optimism after the country’s worst ever crises
Devaluation brings new players to market
Piracy and contraband win the battle
Rich children, poor children
Table 1 Retail Sales of Toys and Games by Sector: Value 2001-2006
Table 2 Retail Sales of Toys and Games by Sector: % Value Growth 2001-2006
Table 3 Retail Sales of Toys and Games by Distribution Format: % Analysis 2001-2006
Table 4 Toys and Games Company Shares by Value 2002-2005
Table 5 Forecast Retail Sales of Toys and Games by Sector: Value 2006-2011
Table 6 Forecast Retail Sales of Toys and Games by Sector: % Value Growth 2006-2011
DEFINITIONS
Toys and games
LOCAL COMPANY PROFILES - ARGENTINA
CAUPUR SA - TOYS AND GAMES - ARGENTINA
STRATEGIC DIRECTION
KEY FACTS
Summary 1 Caupur S.A.: Key Facts
Summary 2 Caupur S.A.: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 3 Caupur S.A.: Production Statistics 2005
COMPETITIVE POSITIONING
Summary 4 Caupur S.A.: Competitive Position 2005
DITOYS SA - TOYS AND GAMES - ARGENTINA
STRATEGIC DIRECTION
KEY FACTS
Summary 5 Ditoys S.A.: Key Facts
Summary 6 Ditoys S.A.: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 7 Ditoys S.A.: Production Statistics 2005
COMPETITIVE POSITIONING
Summary 8 Ditoys S.A.: Competitive Position 2005
EDUSOFT SA - TOYS AND GAMES - ARGENTINA
STRATEGIC DIRECTION
KEY FACTS
Summary 9 Edusoft S.A.: Key Facts
Summary 10 Edusoft S.A.: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 11 Edusoft S.A.: Production Statistics 2005
COMPETITIVE POSITIONING
Summary 12 Edusoft S.A.: Competitive Position 2005
LIONEL'S SA - TOYS AND GAMES - ARGENTINA
STRATEGIC DIRECTION
KEY FACTS
Summary 13 Lionel’s S.R.L.: Key Facts
Summary 14 Lionel’s S.R.L.: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 15 Lionel’s S.R.L.: Production Statistics 2005
COMPETITIVE POSITIONING
Summary 16 Lionel’s SRL: Competitive Position 2005
RUIBAL HNOS SA - TOYS AND GAMES - ARGENTINA
STRATEGIC DIRECTION
KEY FACTS
Summary 17 Ruibal Hnos. S.R.L.: Key Facts
Summary 18 Ruibal Hnos. S.R.L.: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 19 Ruibal Hnos. S.R.L.: Production Statistics 2005
COMPETITIVE POSITIONING
Summary 20 Ruibal Hnos. S.R.L.: Competitive Position 2005
TRADITIONAL TOYS AND GAMES IN ARGENTINA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
Table 7 Retail Sales of Traditional Toys and Games by Subsector: Value 2001-2006
Table 8 Retail Sales of Traditional Toys and Games by Subsector: % Value Growth 2001-2006
Table 9 Retail Sales of Traditional Toys and Games by Distribution Format: % Analysis 2001-2006
Table 10 Traditional Toys and Games Company Shares by Value 2002-2005
Table 11 Forecast Retail Sales of Traditional Toys and Games by Subsector: Value 2006-2011
Table 12 Forecast Retail Sales of Traditional Toys and Games by Subsector: % Value Growth 2006-2011
VIDEO GAMES IN ARGENTINA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
Table 13 Retail Sales of Video Games by Subsector: Value 2001-2006
Table 14 Retail Sales of Video Games by Subsector: % Value Growth 2001-2006
Table 15 Retail Sales of Video Games by Distribution Format: % Analysis 2001-2006
Table 16 Video Games Company Shares by Value 2002-2005
Table 17 Forecast Retail Sales of Video Games by Subsector: Value 2006-2011
Table 18 Forecast Retail Sales of Video Games by Subsector: % Value Growth 2006-2011