Monday, August 26, 2013

Over favor resumption of national production of toys

Gulliver factory in São Caetano do Sul is still more like a warehouse than a manufacturing unit. A scenario which has been dragging on since the beginning of the last decade, when the company gave priority to imports rather than local production.
High-dollar makes imports less competitive
With an avalanche of Chinese toys since the ' 90, most of them with informal ticket in the country, the Gulliver failed to chase the lost time. Today, with a mix of products destined for high income, the public company tries to restructure to become the key along with the market changes. By 2015, the goal is to produce 50% of toys in the country with up to 80 new releases focused on class B and C.
"We have almost 90% of the portfolio consists of Chinese products. The factory became practically a stock, "says Fábio Teixeira, head of the commercial Department of the company.
The project of revival of company responsible for football Gulliver, game that still today is part of the memory of most of the big guys that today has between 25 and 50 years ago, symbolizes the new moment of national market of toys. With the change of the exchange rate level, which increases the cost of imports and domestic production, opens a new window of opportunity for the national sector.
"We put your head on the pillow and smile in our dreams", illustrates Synésio Batista da Costa, President of the Brazilian Association of toy manufacturers (Abrinq).
Today restructured, the star, which until 2005 estimated annual losses of more than $ 11 million on the Chinese bombardment phase, reversed the business producing both in Brazil and in China itself. "Today, 65% of our products are made here. In 2013, the account is closed since January, when purchases are made in foreign markets. Next year, however, the currency change must increase costs by 25%. To compensate for this, we will have an increase of domestic output reaching up to the limit of 80% ", explains Carlos Tilkian, President of star.
The other "secret" behind the account is in the pricing. While inflation in the country approached the 6% last year, the readjustment of the toys came in 1.5%, according to figures from the Economic Research Institute Foundation (FIPE).
See also: Central Bank releases daily exchange rate intervention plan by the end of the year
"Our inflation is always well below the average for the country. That's why we also have a change in the landscape of consumption with an increase in the purchasing power of households. In 2005, nobody wanted to spend more than $ 100 in a toy. Today 14% of buyers already pay this value, "adds Synésio.
The toy retailer sector moves annually in the country $ 4 billion. About a third of that amount goes to the RiHappy. Two dates, Christmas and children's day, concentrate 80% of sales. The network ascribes its turnover to changes in product mix. Every year there are renovation of 70% of the items of the gondolas. "The products of technology are those who earn more and more space," says Tony Calissi, commercial Director of the network.
Portal de Notícias IG - 23/08/2013
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