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: 31 | Publication date: Nov 2008
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Executive summary
Growth in sales of traditional toys and video games
Despite the country’s recent economic slowdown, the market for traditional toys and games in Mexico continues to witness growth. Between 2006 and 2007, value sales increased by nearly 15%. In 2008, value sales increased but at a slower rate, 13%, reaching more than Mx$23 billion. This slowdown in the rate of growth was partly due to the country economic situation, driven by increased oil prices, decreasing remittances from the US and the dependency of the Mexican economy on the US economy. At the same time, Mexican consumers continue to spend their money on video games. In 2008, value sales grew by a staggering 44% over prior year, reaching Mx$29.3 billion.
Industry dominated by imports
The toys and games market in Mexico is dominated by imports. Domestic manufacturers are seeking ways to find a position in the market and, with government support they are looking for new ways to push the national industry, through both strategic alliances and foreign direct investment. Commercial missions to Asia, in particular to China, through the government initiative Pro Mexico are taking place in order to identify partners that will invest in Mexico, create jobs, teach their know-how and help consolidate Mexican production. Domestic manufacturers are looking for new opportunities and are developing new products. Although competition from international companies is very strong, local manufacturers are nevertheless specializing and becoming successful in specific niche markets.
Increased sales of video games in Mexico
Growing at a CAGR of nearly 41% over the review period, video games registered the most significant sales increase in the sector. The Mexican video game market is exploding, attracting major new marketing investment and attracting global game publishers to establish local offices. Manufacturers are looking at Mexico as a great growth market over the forecast period, despite the current piracy and counterfeit problems. Mexico has become leader in Latin American video game market, registering the greatest market share in the region.
International companies are the main players in the market
The market continues to be dominated by international companies. Mattel and Hasbro have sizable market shares, and they are able to place products in all subsectors. Both strongly support sales efforts through in publicity and advertising, and both have great infrastructures devoted to new product innovation and development. Local manufacturers are also seeking more opportunities, but the impact globalization and increased competition make it difficult. Other international companies in the Mexican market include Sony, Microsoft and Nintendo (Motta International), all of which offer both hardware and software. As well, these companies support sales via big advertising campaigns, promotions and product development and innovation. Investment in state of the art technology is a must for companies wanting to survive in this fiercely competitive market.
High expectations for growth over the forecast period
Sales of traditional toys will continue grow over the forecast period. Video games, however, are more likely to show fast growth due to their novelty and recent popularity in Mexico. It is expected that economic conditions will stabilize and the market will benefit from this. Although birth rates are expected to decline over the forecast period, it will nevertheless still be a very strong market as Mexican parents continue to indulge their kids with traditional toys.
Table of contents
TOYS AND GAMES IN MEXICO : MARKET INSIGHT
EXECUTIVE SUMMARY
Growth in sales of traditional toys and video games
Industry dominated by imports
Increased sales of video games in Mexico
International companies are the main players in the market
High expectations for growth over the forecast period
KEY TRENDS AND DEVELOPMENTS
Targeting Young Unmarried Gamers (YUGs)
Economic performance not as good as forecast
Changes in distribution channels encourage sales of toys and games
Piracy, smuggling and counterfeiting continue to plauge the sector
Fewer births but still growth in toys and games
MARKET DATA
Table 1 Sales of Toys and Games by Sector: Value 2003-2008
Table 2 Sales of Toys and Games by Sector: % Value Growth 2003-2008
Table 3 Sales of Toys and Games by Distribution Format: % Analysis 2003-2008
Table 4 Toys and Games Company Shares by Value 2004-2007
Table 5 Forecast Sales of Toys and Games by Sector: Value 2008-2013
Table 6 Forecast Sales of Toys and Games by Sector: % Value Growth 2008-2013
DEFINITIONS
Toys and Games
Video games
Summary 1 Research Sources
LOCAL COMPANY PROFILES - MEXICO
ALGARA SA DE CV - TOYS AND GAMES - MEXICO
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Algara, S.A de C.V.: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 3 Algara: Competitive Position 2007
HASBRO DE MéXICO SA DE CV - TOYS AND GAMES - MEXICO
STRATEGIC DIRECTION
KEY FACTS
Summary 4 Hasbro de México, S.A. de C.V.: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 5 Hasbro de México, S.A. de C.V.: Competitive Position 2007
LEGO MEXICO SA DE CV - TOYS AND GAMES - MEXICO
STRATEGIC DIRECTION
KEY FACTS
Summary 6 LEGO Mexico, S.A. de C.V. : Key Facts
Summary 7 LEGO Mexico: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
MATTEL MéXICO SA DE CV - TOYS AND GAMES - MEXICO
STRATEGIC DIRECTION
KEY FACTS
Summary 8 Mattel de Mexico S.A. de C.V: Key Facts
COMPANY BACKGROUND
PRODUCTION
Summary 9 Mattel de Mexico, S.A. de C.V.: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 10 Mattel de Mexico S.A. de C.V.: Competitive Position 2007
SALVER MEXICANA SA DE CV - TOYS AND GAMES - MEXICO
STRATEGIC DIRECTION
KEY FACTS
Summary 11 Salver Mexicana: Key Facts
COMPANY BACKGROUND
PRODUCTION
Summary 12 Salver Mexicana : Production Statistics 2007
COMPETITIVE POSITIONING
Summary 13 Salver Mexicana: Competitive Position 2007
TRADITIONAL TOYS AND GAMES IN MEXICO
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 7 Sales of Traditional Toys and Games by Subsector: Value 2003-2008
Table 8 Sales of Traditional Toys and Games by Subsector: % Value Growth 2003-2008
Table 9 Sales of Traditional Toys and Games by Distribution Format: % Analysis 2003-2008
Table 10 Traditional Toys and Games Company Shares by Value 2004-2007
Table 11 Forecast Sales of Traditional Toys and Games by Subsector: Value 2008-2013
Table 12 Forecast Sales of Traditional Toys and Games by Subsector: % Value Growth 2008-2013
VIDEO GAMES IN MEXICO
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 13 Sales of Video Games by Subsector: Value 2003-2008
Table 14 Sales of Video Games by Subsector: % Value Growth 2003-2008
Table 15 Sales of Video Games by Distribution Format: % Analysis 2003-2008
Table 16 Video Games Company Shares by Value 2004-2007
Table 17 Forecast Sales of Video Games by Subsector: Value 2008-2013
Table 18 Forecast Sales of Video Games by Subsector: % Value Growth 2008-2013