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Argentina games market: Innovation a key driver of growth

Press Release   •   Jul 17, 2013 15:07 BST

After seeing sales in the Argentina toys market contract throughout 2012, sales were boosted by 17% in volume terms during Christmas, according to the local chamber of small and medium enterprises. With lower confidence in the economy, consumers restrained their consumption across industries, including toys and games, during the year. Christmas accounts for 47% of annual traditional toys and games‟ sales, while Children‟s Day (August) accounts for 33%, and the rest of the year accounts for 20% of annual sales. After seeing a contraction during much of the year, August and December saw sales rise of 11% and 17% respectively, surpassing the effect of the other months.

Local manufacturers in Argentina gained share in traditional toys and games, with production rising by 20% thanks to a new regulatory environment. Apart from import restrictions imposed by the Government in 2011, the new Media Law passed by the Congress in 2012 promotes more child-specific content on broadcasters, with at least 50% of the content produced and developed locally. New television series and characters have been launched and reached substantial revenues, with child audience share reaching 65% in the case of ZTV. Local developers have already signed licensing agreements with local and regional manufacturers across categories (plush toys, dressing-up and role play, action figures and accessories, and model vehicles).

The revenue drain from traditional toys and games stores to other distribution channels, seen over the review period, eased in 2012, with a slight rise in share following strong activity and an expansion in the number of outlets to the provinces. A number of new retailers of traditional toys and games entered the market while others with a long-standing presence have started to franchise their business model locally and regionally to other countries such as Uruguay, Paraguay and Ecuador.

For more information on the Argentina games market, please click here: Argentina games market

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