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Brazilian Toy Manufacturing Industry Foresees Favorable Scenario for Growth in 2020

Last year, Brazil took large steps on the road to economic recovery, and the scenario that is unfolding for 2020 is extremely promising, according to the projections from official government agencies:  GDP growth (2.4%), inflation under control (3.6%) and the lowest official interest rates in recent years (4.5% YOY) .

The Brazilian toy manufacturing industry, which shows expressive growth even during the period of consumption retraction, it´s expected to finish 2019 with growth of 7% on BRL 6.8 billion in revenue, and is one of the main industries to benefit from this favorable business environment.  For 2020, projected growth is 6%.   

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 these factors, 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 privatization plan capable of driving the economy.  

Costa also reinforce that the 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,” assesses the executive.  

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% of the market; vehicles (cars, race tracks), 16.7%; sporting goods (tricycles, scooters, bicycles), 12.1%; and games, 9.7%.  The leading consumer states for toys are Sao Paulo, Rio de Janeiro, Minas Gerais and Santa Catarina, which contribute to 55.4% of the total market in Brazil.     

Brazilian International Toy Fair

Within this optimistic economic environment the toy manufacturing industry will hold its official exhibition on March 8-11, ABRIN – Brazilian International Toy Fair.

 This year the edition will have 30,000 sqm of exhibition space (growth of 22% versus the previous edition) and will showcase 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 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, ABRIN will present training and development opportunities so that stores can sell more and increase their revenues.  The exhibition will offer free program of speaking sessions about solutions and best practices for visual merchandising, technology, buyer behavior 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 organize 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 alignment with one of the pillars of ABRINQ, the valorization of the act of playing, ABRIN 2020 has chosen the slogan “Toys Make the World Better”.  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 centralization of the toy imports in lesser ports to make the customs inspections easier. 

About ABRINQ  

The Brazilian Association of Toy Manufacturers – ABRINQ is the trade association that officially represents the Brazilian manufacturers and the toy industry as a whole. 

About Francal Feiras

The largest trade show organizer in Brazil with 100% domestic capital, Francal Feiras operates in 15 different industries, connecting Brazilian manufacturers to retail and importers from the five continents.  The company drives business, fashion, knowledge, solutions and sevices for retail in complete alignment with the demands of an industry in constant transformation.   

SERVICE:

ABRIN 2020 – 37th BRAZILIAN INTERNATIONAL TOY FAIR

Date: March 8-11 

Hours: 10:00am – 8pm 

Venue: Expo Center Norte – Sao Paulo

Promotion/ Organization: ABRINQ – Brazilian Association of Toy Manufacturers and Francal Feiras 

Information by telephone: +55 (11) 2226-3100  

Site: www.abrin.com.br / Facebook: FeiraAbrin / Instagram: @FeiraAbrin / Youtube: Feira Abrin 

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Journalist: Luiz Carlos Franco 

ppagina@ppagina.com

January/2020

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