from The Argentine Games Industry Chamber (CAIJ) warns that the sector is experiencing one of its worst moments of its history due to the closure of businesses and the collapse of sales, which in November reached 30%.
Your boss, Matthias FurioHe commented to PERFIL that “in the last two years 300 toy stores out of a total of 3,500 were closedSome are more than 50 years old, meaning a loss of employment for 1,500 people.
According to Forio, the exit of these companies from the market is due to… “Low consumption and in addition to this is the fact that it can be imported without customs duties From virtual stores. In addition, they have to pay more for gas, electricity, rent, salaries, etc. He pointed out that in the case of prices, they have multiplied by 10 since December 2023.
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“order “Door to door” actually mainly kills the importer “And for the toy merchant, because his merchandise is branded or licensed,” Furio added.
Between January and October, Toy imports amounted to US$91.3 million FOB and 17.5 million kilograms. With an annual increase of 59.5% in values and 94% in volume. China accounts for 85.7% of the value and 94.4% of the imported volume, according to CAIJ data.
Moreover, the lower tariff did not affect prices for families:
“The tariff was reduced by 15%, but the prices of imported toys did not decrease.” Furio pointed out.
Regarding the government’s position on this situation, “They have their ideas, the people voted for them and they will continue what they have been doing. They order the macro and then the micro as best as they can.
Toy smuggling
Another aspect that worries the toy store sector is smuggling, which may reach 30% of the market. “Customs have been left with fewer controls. Previously, a toy certificate was required upon entry of the product, now it is done after delivery, depending on the demand,” the CAIJ president stated.
Regarding the situation, Forio commented: “This was the worst November in the industry’s memory. Sales were not too bad, 6% or 7% less than last year, but in November they were down 30%.”
As for the industry, it currently exists 6 out of 10 machines stopped production.