While the tale of the UK toy scene sounds more like a Stephen King novel than a Mills & Boon, at the moment the international space is showing determination – and even growth – in the Brazilian market. .
According to the Brazilian Toy Manufacturers Association – or ABRINQ – the Brazilian toy manufacturing industry expects growth of seven percent for 2019, generating an impressive turnover of BRL 6.8 million.
The local toy industry is one of the main industries to have benefited from a more favorable business environment in Brazil, where GDP grew by 2.4%, inflation was brought under control at 3.6% and the country enjoys the lowest official interest rate. rate he’s seen in recent years.
A perfect recipe then for the company, the projected growth for the Brazilian toy industry this year is now six percent.
According to SynÃ©sio Batista da Costa, president of the Brazilian Association of Toy Manufacturers (ABRINQ), many issues should contribute to the significant growth of this sector. Among them, the liberal positioning of Brazilianthe federal government, which removed obstacles to improving the performance of the private sector, encouraged fiscal adjustments through structural reforms and implemented a privatization plan capable of stimulating the economy.
Meanwhile, the country’s official banks have extended product and factory financing at more attractive rates, and supplies critical to production, such as gas and electric power, have seen their rates cut or have been cut. tend to remain stable.
âFinally, unlike other countries like Argentina, Brazil has considerable reserves in US dollars, which has allowed the exchange rate to remain in check, âadded Costa.
The Brazilian Toy manufacturing industry employees nearly 34,000 people, between direct workers and subcontractors, contains 403 manufacturing facilities and annually launches about 1,500 new toys.
The main toy lines are dolls with 19.2 percent of the market; vehicles (cars, race tracks), 16.7%; sporting goods (tricycles, scooters, bicycles), 12.1 percent; and games, 9.7 percent.
The main toy consuming states are Sao Paulo, Rio de Janeiro, Minas Gerais and Santa Catarina, which account for 55.4% of the total Brazil.
The announcement comes a few weeks ahead of this year’s Brazilian International Toy Fair, which runs March 8-11.
This year, the edition will have 30,000 mÂ² of exhibition space (22% growth compared to the previous edition) and will present 135 exhibitors in one of the most modern exhibition centers in Brazil: Expo Center Norte, in the city of Sao Paulo.
Today, Brazil is one of the few countries to have maintained local production of toys, and this relevance is reflected in the exhibition. ABRIN is strengthening its position as the third largest toy fair in the world, behind the international toy fair in Nuremberg (Europe) and the toy and game fair in Hong Kong (Asia).
The exhibition marks the start of business in the new year for the toy industry, as more than 1,500 new product launches will be showcased exclusively by Brazilian manufacturers with the goal of providing POS throughout the year.
In addition, the exhibition will feature a free program of lectures on solutions and best practices for visual merchandising, technology, buyer behavior and other topics related to the retail environment.
In addition, in line with the prevailing trends of modern stores, one of the main attractions will be the presentation of practical solutions to better organize the POS, emphasizing visual merchandising and strategic distribution of products.
The exhibition will also feature segmented spaces and activities that explore some of the key trends in the global toy manufacturing industry, such as board games, in-vehicle technology, product licensing and innovation (start- ups).
In the current macroeconomic scenario, the association is joining forces with the administrations to fight against unfair competition and the seizure of counterfeit toys, and to defend the extension of the time limit for collecting taxes from toy manufacturers, as well as the centralization of toys. imports into smaller ports to facilitate customs controls.