2018 was a good year for traditional toys and games, with sales surpassing industry expectations, despite a stagnating economic scenario. Having suffered one of the worst strikes in years and only starting to recover from a major economic crisis, traditional toys and games in Brazil was able to bounce back.
The “wow” factor continues to boost sales of traditional toys and games – and the trend does not look like fading away. Undeniably, everyone likes a good “wow”, something that stands out from the norm, and when applied to a specific product such as a toy, this creates intrinsic value in a consumer base that is more susceptible to external influences – children.
As e-commerce continues recording one of the fastest growth rates in retailing, products spanning different industries strive to position themselves in the channel, and traditional toys and games is no exception. Ranging from pure e-commerce players such as Amazon Brasil to multichannel players Magazine Luiza and Lojas Americanas, manufacturers are positioning themselves online to grab a share of internet retailing’s growth.
American manufacturers Mattel and Hasbro remained the leading players in traditional toys and games in 2018. Thanks to wide brand recognition with iconic toys such as Hot Wheels, Barbie, Nerf and Playskool, the two manufacturers were able to maintain their leadership through growth in well-positioned toy categories such as dolls and accessories and action figures.
Retailer Ri Happy Brinquedos, the strongest and most renowned bricks-and-mortar chain of toy stores in Brazil, is increasingly penetrating traditional toys and games with the launch of its own lines, including Ri Happy and PB Kids. With its expertise in retailing and tactical information regarding what are the best-selling toys within its stores, the retailer positions lower-priced versions of toys that are the most successfully selling products from other manufacturers.
Brazilian companies are still small in comparison with their international counterparts, be it manufacturers or distributors. However, even if it has been at a slow rate over the years, local companies are steadily increasing their footprint in traditional toys and games.
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This industry report originates from Passport, our Toys and Games market research database.