While the narrative of the UK’s toy scene reads more like a Stephen King novel than a Mills & Boon, right now, the international space is showing a resolve – and even growth – in the Brazilian market.
According to the Brazilian Association of Toy Manufacturers – or ABRINQ – the Brazilian toy manufacturing industry is expecting to post a growth of seven per cent for 2019, bringing in an impressive BRL 6.8m in revenue.
The local toy industry is one of the main industries to have benefitted from a more favourable business environment in Brazil, in which GDP has grown 2.4 per cent, inflation has been brought under control at 3.6 per cent, and the country enjoys the lowest official interest rates it seen in recent years.
A perfect recipe then for the business, projected growth for the Brazilian toy industry this year is now at six per cent.
According to Synésio Batista da Costa, President of the Brazilian Association of Toy Manufacturers (ABRINQ), many issues should contribute to the significant expansion of this sector. Among them is the liberal positioning of Brazilian’s federal government, which has been removing obstacles to performance improvement by the private sector, promoting the fiscal adjustments via structural reforms, and putting in practice a privatisation plan capable of driving the economy.
Meanwhile, the country’s official banks have been extending financing for products and factories with more attractive rates, and essential supplies for production, such as gas and electric energy, had their rates reduced or tend to remain stable.
“Finally, in contrast to other countries like Argentina, Brazil has considerable US Dollar reserves, which has enabled the exchange rate to remain under control,” added Costa.
The Brazilian toy manufacturing industry employees almost 34,000 people, between direct and subcontracted workers, contains 403 manufacturing facilities and launches annually approximately 1,500 new toys.
The main toy lines are dolls with 19.2 per cent of the market; vehicles (cars, race tracks), 16.7 per cent; sporting goods (tricycles, scooters, bicycles), 12.1 per cent; and games, 9.7 per cent.
The leading consumer states for toys are Sao Paulo, Rio de Janeiro, Minas Gerais and Santa Catarina, which contribute to 55.4 per cent of the total market in Brazil.
The announcement comes just weeks ahead of this year’s Brazilian International Toy Fair, running from March 8th to 11th.
This year the edition will have 30,000 sqm of exhibition space (growth of 22 per cent versus the previous edition) and will showcase 135 exhibitors in one of the most modern exhibition centres in Brazil: Expo Center Norte, in the city of Sao Paulo.
Today, Brazil is one of the few countries that has maintained local production of toys, and this relevance is reflected in the exhibition. ABRIN reinforces its positioning as the third largest toy exhibition in the world, behind only Nuremberg International Toy Fair (Europe) and Hong Kong Toys & Game Fair (Asia).
The exhibition marks the start of business to the new year for the toy industry, considering that over 1,500 new product launches will be presented exclusively by Brazilian manufacturers with the goal of supplying PDVs during the entire year.
In addition, the exhibition will offer a free programme of speaking sessions about solutions and best practices for visual merchandising, technology, buyer behaviour and other topics related to the retail environment.
In addition, in line with the leading tendencies of modern stores, one of the main attractions will be the presentation of practical solutions in order to better organise the PDV, highlighting visual merchandising and the strategic distribution of products.
The exhibition will also showcase segmented spaces and activities that explore some of the leading trends of the global toy manufacturing industry, such as board games, embedded technology, product licensing and innovation (start-ups).
In the current macroeconomic scenario, the association is working together with government agencies in order to combat unfair competition and the seizure of counterfeit toys, and to defend the extension of the timeframe for tax collection with toy manufacturers, as well as the centralisation of the toy imports in lesser ports to make the customs inspections easier.