Toys And Games in Mexico
Euromonitor International's Toys And Games in Mexico 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: 23 | Publication date: Nov 2006
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- Get insight into trends in market performance
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Executive summary
Traditional toys and games continue to show growth
After years of constant but low growth, 2005 showed a slightly higher rise than in previous years. The habit of toy giving is strong, and the sector was able to keep prices constant or even lower them, making toys affordable.
Multinational companies dominate market, Mexican companies focus on niches
Multinational companies Mattel and Hasbro have a sizable market share and are able to offer toys for all age segments, supported by heavy advertising activity in TV shows devoted to children. These companies also have sourcing abilities, especially from Asia, and China. Constant introductions of new toys and line extensions are part of their strategy.
Mexican companies focus on niches and are having a hard time competing with both legally and illegally imported toys. Many local companies had to close in the last ten years, and the sector is starting to receive government attention.
Even as the country’s population ages, toys and games will see organic growth
For the first time in recent times, the demographic composition of the country is changing and the population is ageing. However, the habit of toy giving is strong in the country. An increasing number of families that have both parents working will try to “compensate” their children, and grandparents are becoming more numerous and are becoming important toy purchasers. These trends will maintain organic but constant growth in the years to come.
Video games will continue with its strong growth because it offers constant innovation, but are limited to those with good incomes.
Supermarkets have big share of distribution, but informal sales strong
Supermarkets increasingly gained distribution share, given their purchasing power and sourcing capabilities, with some of them even importing directly instead of buying from established toy marketers. Supermarkets were able to attract more customers and grew constantly both in terms of stores and geographic reach. This was one of the strongest forces to keep prices controlled, as most supermarkets follow an ‘Everyday Low Price’ strategy.
A sizable share of the toys and games sector is made up of smuggled or counterfeit goods sold through the informal sector. These sales mostly affect toy specialists. Informal sales are through street vendors and some persons even supplement their income offering fully-fledged catalogues of products.
Video games saw big growth but software heavily affected by piracy
Video games saw explosive growth because games are now more attractive to adult Mexicans who have higher disposable incomes. In addition, children are becoming more influential in the purchasing decisions of their families. Video games technology advanced, offering a richer gaming experience.
However, the sector could be bigger were not it for the pervasive presence of counterfeit goods, as about 75% of all video games do not comply with intellectual protection regulations, and find a ready distribution market in the also pervasive and widespread informal sector.
Table of contents
TOYS AND GAMES IN MEXICO : MARKET INSIGHT
EXECUTIVE SUMMARY
Traditional toys and games continue to show growth
Multinational companies dominate market, Mexican companies focus on niches
Even as the country’s population ages, toys and games will see organic growth
Supermarkets have big share of distribution, but informal sales strong
Video games saw big growth but software heavily affected by piracy
KEY TRENDS AND DEVELOPMENTS
Fewer children in the years to come but still a sizable share of population
Toy industry dominated by international companies
Supermarkets are the main retailing channel
Smuggling and counterfeit products are a big issue
Video games popular but expensive for most Mexicans
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 - MEXICO
ALGARA SA DE CV - TOYS AND GAMES - MEXICO
STRATEGIC DIRECTION
KEY FACTS
Summary 1 Algara SA de CV: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 2 Algara SA de CV: Competitive Position 2005
SALVER MEXICANA SA DE CV - TOYS AND GAMES - MEXICO
STRATEGIC DIRECTION
KEY FACTS
Summary 3 Salver Mexicana SA de CV: Key Facts
COMPANY BACKGROUND
PRODUCTION
Summary 4 Salver Mexicana SA de CV: Production Statistics 2005
COMPETITIVE POSITIONING
Summary 5 Salver Mexicana SA de CV: Competitive Position 2005
TRADITIONAL TOYS AND GAMES IN MEXICO
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 MEXICO
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