Toys And Games in Brazil
Euromonitor International's Toys And Games in Brazil 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.
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Tables: 32 | Publication date: Nov 2006
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- Get insight into trends in market performance
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Executive summary
Economic Impact on the Toy Industry in Brazil
Since Plano Real, Brazil is living in an era of economic stability. However, if in the beginning of the 1990s the high real to the dollar contributed to imports of new toys, the scenario changed many times over the years, forcing companies to constantly review their strategies. For example, in the retail market, the devaluation of the dollar in 2005 helped to lower the average retail price of toy and games by nearly 5%.
It is a recent phenomenon that Brazilian companies are aiming to export their products as a way of growing business, especially as local product prices fell. The 2002 energy crisis combined with the increase in raw materials that same year forced companies to move production to cities in the interior where costs are lower. However, although many companies now have a client portfolio and export structure, the value of the real is once again high, which is an obstacle for international sales.
Chinese Imports a Threat to the Domestic Market
Since 1994 the government has tried to control Chinese imports. ABRINQ (Associação dos Fabricantes de Brinquedos, The Toy Industry Association), through the MDIC ministry, (Ministério da Industria e Comércio, The Industry and Commerce Ministry) petitioned the government to prolong the high import taxes in place since 1994 to protect the toy market through the end of 2004. The industry has not yet concluded its price adjustments and asked for an extra import tax of 9% in 2005 and 8% during the first half of 2006. Imports, which reached R$164 million in 1995 dropped to R$99 million in 2003, yet have doubled in the first six months of 2005.
New Releases Achieve Results
Companies are adopting the strategy of many new product releases to attract young consumers. During 2005, 1,200 new toys were launched. As in many other areas, there was a rapid change in interests among children. As in fashion, new releases struggle to attract attention in this very competitive business. Even parents are no longer looking for a toy that lasts long, but a toy that keeps the attention of their child, the toy of the moment, that everybody has and talks about.
Traditional Toys vs Electronics
There is a growing interest in buying electronic toys and a reduction of interest in buying toys that provide activities that stimulate artistic or scientific interests.
Security problems keep children inside apartments and led to a large reduction in sales of outdoor toys and games that require more than one player. Electronic games that allow for high levels of interaction will take preference and fill a void for insulated children.
Estrela and Grow Loose Share
Most traditional manufacturers, like Estrela and Grow, lost share to a variety of smaller importers or new brands. But they learnt the lesson that innovation is vital in this market, both in terms of products and marketing activities. As such major players targeted these areas and concentrated more on research and communication development.
Table of contents
TOYS AND GAMES IN BRAZIL : MARKET INSIGHT
EXECUTIVE SUMMARY
Economic Impact on the Toy Industry in Brazil
Chinese Imports a Threat to the Domestic Market
New Releases Achieve Results
Traditional Toys vs Electronics
Estrela and Grow Loose Share
KEY TRENDS AND DEVELOPMENTS
Chinese Imports Threaten Domestic Market
New Releases, Both Old and New, Achieve Rresults
Traditional Toys vs Electronics
Government Protection of Toys and Games Ends
MARKET DATA
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 - BRAZIL
GROW JOGOS E BRINQUEDOS SA - TOYS AND GAMES - BRAZIL
STRATEGIC DIRECTION
KEY FACTS
Summary 1 Grow Jogos e Brinquedos SA: Key Facts
Summary 2 Grow Jogos e Brinquedos SA: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 3 Grow Jogos e Brinquedos SA: Competitive Position 2005
GULLIVER SA - TOYS AND GAMES - BRAZIL
STRATEGIC DIRECTION
KEY FACTS
Summary 4 Gulliver Manufatura de Brinquedos SA: Key Facts
Summary 5 Gulliver Manufatura de Brinquedos SA: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 6 Gulliver Manufatura de Brinquedos SA: Competitive Position 2005
MANUFATURA DE BRINQUEDOS ESTRELA SA - TOYS AND GAMES - BRAZIL
STRATEGIC DIRECTION
KEY FACTS
Summary 7 Manufatura de Brinquedos Estrela SA: Key Facts
Summary 8 Manufatura de Brinquedos Estrela SA: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 9 Manufatura de Brinquedos Estrela SA: Production Statistics 2005
COMPETITIVE POSITIONING
Summary 10 Manufatura de Brinquedos Estrela SA: Competitive Position 2005
TEC TOY SA - TOYS AND GAMES - BRAZIL
STRATEGIC DIRECTION
KEY FACTS
Summary 11 Tec Toy SA: Key Facts
Summary 12 Tec Toy SA: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 13 Tec Toy SA: Production Statistics 2005
COMPETITIVE POSITIONING
Summary 14 Tec Toy SA: Competitive Position 2005
TRADITIONAL TOYS AND GAMES IN BRAZIL
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
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 BRAZIL
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
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