Mexican toys will reach Japan and South America with TPP

The toy industry could increase its exports by up to 15% by 2018, thanks to the TPP as it opens the opportunity for producers and manufacturers to expand their market, both the countries, like others in the region South America and Middle East. The Trans-Pacific Economic Partnership Agreement (TPP) will not only generate benefits for the automotive and pharmaceutical industries, for the table games, puzzles, buildable pieces and the segment of toys in general could increase exports by up to 15 percent by the 2018, according to estimates by industry participants. Shipments abroad totaled toy thousand 600 million dollars annually, according to the Mexican Association of the Toy Industry (Amiju). Experts agreed that the agreement, which involves Japan, Brunei, Chile, New Zealand, Singapore, United States, Australia, Peru, Vietnam, Malaysia, Canada and Mexico, will open the opportunity for producers and manufacturers of toys which are in the country to expand its market in both these countries, and others from South America and Middle East, where most opportunity with buildable toys and board games is. Currently, most of the toys are exported go to the United States, where it sends nearly 90 percent of the products, according to the Ministry of Economy. According to information from Banco de Mexico, last year exported 547 million thousand dollars in toys. From January to September this year, the local toy industry recorded a sales value of 718 million 124 thousand pesos, which includes only domestic products.

This figure represented an increase of 48 percent over the same period last year; while volume increased by 120.4 percent to 83 million 729 thousand pieces, according to the INEGI. According to Victor Loustalot, CEO of Juguetron, there is an upward trend in the industry, due to higher releases of new toys, while it has led to greater competitiveness compared to other countries. Furthermore, industry participants have been favored by premieres of films and cartoons, which are leveraged to sell items with characters recognized by children. In Mexico, Mattel leads the market, with approximately 28.8 percent share of sales, followed with Hasbro and Lego 13.6 percent to 6.7 percent. “In Mexico we are exporting more and more toys to the United States, Canada, Europe and Central America. By 2016 we will be expanding markets to other countries mainly in the Middle East; we also want to reach Korea. And we seek greater access to the TPP to other countries”, he said in an interview Miguel Angel Martin, president of the Amiju. Companies like Martí Plastic Industries, which manufactures puzzles, and ships to Hong Kong and China, stressed businessman. While some companies, such as Lego and Mattel toys are manufactured and distributed in Mexico and sending goods to other countries. In 2016 will be looking for a greater number of exports, but by 2017 and 2018 is when they expect their occurrence, said the representative of the sector. “We want to integrate countries like Korea and Japan, which are major consumers

of riding toys and games,” said Martin. Meanwhile, Caesar Muratalla, manager of Marketing Bandai, Japanese company dedicated to the creation of toys and action figures, who have the rights to use the image of the Power Rangers, Peppa Pig and other cartoons, he said countries like Brazil, Chile and Colombia are also attractive for exports from the Mexican market, beyond what can be achieved also with the countries of the TPP.

Source: MéxicoXport