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7
MINUTE READ TIME
Published
May 14, 2024
|
Victoria Tolve
|
Partner Spotlight

Tapping into Opportunity: Selling Toys and Games in Latin America

Tapping into Opportunity: Selling Toys and Games in Latin America

Table of Contents

In Latin America, the toys and games industry emerges as a beacon of opportunity, showcasing remarkable growth and development prospects.

According to StrategyHelix, the sector was valued at $5 billion in 2021, with projections soaring to $11 billion by 2027, boasting an impressive average annual growth rate of 12.9%. With a youthful population at its helm and a median age of approximately 29, the region presents a fertile ground for market expansion.

Mexico, boasting a population of 130 million, and Brazil, home to 53.7 million children, mirror this trend with a significant demographic of children and adolescents, accounting for a substantial portion of the populace.

The surge in demand for toys and games in Latin America finds its roots in children’s exposure to the Internet, where social media, influencers, and streaming platforms serve as catalysts for consumer engagement.

With 87% of children and teens active on social media daily and 76% regularly consuming YouTube content, the allure of the latest releases from the United States permeates the market, driving consumer desires and purchase intentions.

In this post, we’ll explore toy sales growth in Latin America and some strategies you can use to capitalize on this lucrative opportunity.

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The Role of Ecommerce in Toy Sales in Latin America

Nocnoc on mobile screen

The pandemic has reshaped shopping habits in Latin America, with ecommerce emerging as the primary avenue for toy and game sales.

Marketplaces like Mercado Libre, Magalu, Americanas, and VIA Varejo dominate this space, accounting for about 55% of total sales. In Brazil, ecommerce is particularly influential, with 84% of customers navigating online channels before purchasing.

Mercado Libre stands out, experiencing a remarkable 260% surge in toy sales from 2018 to 2020, with Mexico leading the growth at 352%. Other players like Magalu and Americanas are also making significant strides.

Magalu represents 45% of total online toy sales in Brazil, according to Neotrust. On the other hand, the Americanas marketplace has also established its dedicated channel for selling toys, known as RiHappy.

These marketplaces leverage marketing campaigns and key ecommerce events like Christmas, Children's Day and Black Friday to drive online toy sales in Latin America, making the region an enticing market for toys and games sellers to explore.

Best-Selling Toys Latin America

Child is  playing with lego

The Latin American toy market presents diverse offerings, blending globally recognized brands and licensed products with traditional favorites.

Latin America Toy Market Trends

Licensed toys have experienced a notable surge in demand, growing by 15% in 2022 alone, according to Mara Ronchin of The Walt Disney Company.

This trend is fueled by the connection between Latin America and the United States, where streaming platforms serve as vital sources for licensing trends. Kids across the region are increasingly drawn to products featuring their favorite characters from digital content and influencers.

According to David Diesendruck, CEO of Redibra, the growth of these services creates numerous opportunities for the toy industry.

Other Top Toy Brands Latin America

The top toy brands in Latin America vary depending on popularity, market share, and consumer preferences. Some of the leading toy brands in the region include

  • Mattel
  • Hasbro
  • LEGO
  • Disney
  • Fisher-Price
  • Nerf
  • Barbie
  • Hot Wheels
  • Play-Doh

These brands have established a strong presence in the Latin American market and offer a wide range of toys that cater to different age groups and interests. Local brands and manufacturers also play a significant role in the toy industry in Latin America, providing unique products tailored to regional preferences and cultural influences.

Amid this trend, traditional toys continue to hold sway, reflecting Latin American parents' inclination towards toys that promote physical activity, skill development, and creativity. Categories such as construction toys, sports equipment, and educational toys remain perennial favorites.

Meanwhile, some of the most popular games in Latin America include board games, beach games, football, jump rope, marbles, and musical chairs (sillas).

Additionally, the market for toys and games in Latin America is witnessing a rise in electric toys, driven by technological advancements and evolving children's interests, offering benefits such as enhanced development and preparation for a tech-centric future.

Given the significant growth of electronic toys and their lasting presence, it's important to note that specific requirements must be met to ensure compliance when selling battery-operated toys.

PRO TIP

Sellers should take note of these trends, as the demand for licensed toys and traditional favorites presents lucrative opportunities in the Latin American market.

Whether tapping into the allure of popular characters or offering toys that promote physical and cognitive development, sellers stand to benefit from aligning their offerings with the preferences of Latin American consumers.

RELATED: 5 Top Strategies for a Winning Amazon Product Launch, 6 Tips for Launching and Scaling Your Amazon DTC Business

Leveraging the Potential of Toys and Games in Latin America

We've already seen that Latin America presents significant opportunities for brands and sellers looking to expand their products. There is a high demand for games and toys among over 20% of the population, with a strong preference for international brands and beloved characters consumed through streaming channels and television.

Capturing this opportunity requires a strategic approach tailored to the region's unique characteristics and consumer preferences. Here are some key strategies to consider:

Market Research

Conduct thorough market research to understand the preferences, demographics, and purchasing behaviors in different South American countries. Identify popular toy categories such as educational toys in Latin America, emerging trends, and cultural nuances that may influence buying decisions.

Localization

Adapt your product offerings, marketing strategies, and messaging to resonate with the local audience. Consider language, cultural references, and packaging design to ensure your toys appeal to Latin American consumers.

Distribution Channels

The easiest way to penetrate the Latin American toy market is through electronic channels, as over 68% of children discover new toys through digital platforms, and more than 50% of total sales occur through these channels. Therefore, consider selling toys and games in Latin America through online marketplaces.

RELATED: Selling on Walmart vs Amazon: Everything Sellers Need to Know

Online Presence

Leverage Amazon SEO and digital marketing channels to expand your reach and visibility in Latin America. Invest in localized websites, social media marketing, and targeted advertising campaigns to engage with potential customers.

Witness your organic ranking soar in 90 days while spending less and generating more sales with PixelMe!

PRO TIP

Strategic Partnerships

Collaborate with local influencers, content creators, and media outlets to promote your toy brands and products to a wider audience. Build strategic partnerships with key stakeholders in the region to enhance brand awareness and credibility.

RELATED: Strategies for Successful Brand-Influencer Partnerships

Compliance and Regulations

Familiarize yourself with local regulations, safety standards, and import/export requirements in each Latin American country where you plan to sell your toys. Ensure your products comply with applicable laws and regulations to avoid legal issues.

RELATED: Mastering HS Codes: Boosting Efficiency and Compliance in Global Supply Chains

Customer Experience

Prioritize customer experience by offering seamless shopping experiences, reliable customer support, and hassle-free returns and exchanges. Build trust and loyalty among Latin American consumers by delivering high-quality products and exceptional service.

RELATED: Tips To Improve Customer Experience And Reduce Returns

By adopting a comprehensive approach that combines market insights, localization efforts, strategic partnerships, and customer-centric strategies, you can effectively capitalize on the lucrative opportunity in the Latin American market.

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Expand to Latin America 

Toys and games in Latin America, fueled by ecommerce growth, present a promising opportunity for international expansion.

With a young population and a preference for digital platforms, the region offers abundant prospects for global brands and sellers. From licensed products to traditional favorites, the demand for diverse toys and games continues to rise, fostering innovation and creating abundant opportunities. 

Sellers interested in tapping into this lucrative market can leverage Carbon6’s suite of ecommerce tools and online selling platform nocnoc to scale and grow their business easily. Nocnoc is your gateway to over 15 marketplaces in Brazil, Mexico, Colombia, Chile, and Argentina. Start expanding your business into Latin America today and explore the untapped potential of the market.

RELATED: How to Sell on Amazon Japan and Grow with Global Selling, A Comprehensive Guide to Global Ecommerce for US Sellers, 3 Supply Chain Optimization Tips to Improve Profitability

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