Turkey, Russia and Argentina; Trouble Ahead For the Toy and Play Industries?

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Last Friday (Jan. 24, 2014) the currencies of several, fast growing toy importing countries fell sharply in value. According to a Wall Street Journal article, “Investors Flee Developing Countries”:

  • Argentina’s Peso is falling the fastest since 2002
  • The Turkish Lira sank to a record low against the U.S. dollar
  • The Russian ruble hit record lows

Why is this a concern?  It is because,Argentina, Russia andTurkey were in the toy industry’s top 5 fastest growing markets; that according to  Euromonitor's Utku Tansel, in his address to the World Congress of Play last September. These markets have been important to many toy companies because they have offset soft toy sales in the U.S. and E.U.  Now, consumers in these countries will find that imported products will cost more and therefore reduce their purchasing; thus taking the air out of the expansion.

The drop was due to a combination of concerns: Dampening hunger for raw materials by China; political challenges specific to these countries and an anticipated drop in investment in these countries due to changes in policy by the U.S. Federal Reserve.    Whatever the reasons, softening in these markets could have a negative impact on a global toy industry that has come to look to these countries as a source of growth.

3 thoughts

  1. Hi Richard. The truth is that there is too much information regarding the state of the toy industry in Argentina . This industry was virtually wiped out in the 90s by neoliberal policies imposed on the country . There is now something like a fleeting economic protectionism that allows the resurgence of this industry . After the 90s, the few toy factories that remained started making old toys of the 70 ‘s and 80’s . At present there are some government programs that help traditional factories to apply designs to new products. There are also new factories that arose. To give an example , the company I work at present is 30 years old but only 8 in the manufacture of toys. I also worked for 2 other companies that have more than 50 years and are one of the few that survived the annihilation of the 90s . These factories had to adapt to the demands of the current times . To do this they had to perform technology upgrades and adapt new designs for production. There are also many small manufacturers with innovative proposals . From since the relation to the dollar and protectionism help this sector of the industry. Currently domestic toy sales increased from% 10 to 60% in ten years. A lot of products are exported to the rest of Latin America. Emerged to a new shopping area linked to products and promotional toys. This new shopping area allows to export millions units worldwide. Best regards.

  2. Hi Gabriel,
    Thank you for your email. Can you please provide us with a better picture of the Argentine toy industry. Would be very helpful.
    Richard

  3. Hi Richard. I recommend you analyze the current state of the toy industry in Argentina. The relationship of our currency against the dollar encourages even more growth in the industry. The newspapers and media of United States constantly attacks our country. Would be good if you inquire a good sources of information. They see as a threat the growth of our economy in this sector. best regards.

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