The Brazilian toy market recorded a 15% current value growth rate in 2012, however, this was slower than the 17% rate experienced through 2011.
The rising popularity of video games saw the category record higher growth than traditional toys and games.
Within traditional toys, scientific/educational toys, radio/remote control toys and construction toys registered the highest growth rates in 2012.
Growth was predominantly driven by the increase in new products and innovations launched by manufacturers as well as the higher levels of competition among international manufacturers.
The Brazilian Government adopted several measures which would be of benefit to domestic manufacturers in 2012. The most important of these was the inclusion of toys and games in the payroll tax relief programme in January 2013, which will reduce payroll costs.
In order to protect domestic manufacturers from the threat of Chinese imports, the government also increased tariffs on imported products. As a result, for the first time in three years, domestic producers were responsible for 60% of all toys and games sold in Brazil in 2012.
National Children's Day on 12 October and Christmas are the most important dates for the Brazilian toy trade. 70 per cent of the total annual sales are generated at these two times.
Mattel and Hasbro remained the leading manufacturers within the Brazilian toy market in 2012, this was despite numerous domestic manufacturers posing some form of competition.
Mattel offers a range of famous brands such as Barbie, Polly, Max Steel and Hot Wheels and has a strong distribution system which ensures its presence in more than 100,000 retail outlets with 200 million toys.
Other leading manufacturers included video game manufacturer Sony as well as domestic toys and games manufacturers Candide, Grow and Estrela.
For more information on the Brazilian toy market, see the latest research: Toy Market Research
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