São Paulo – Estrela, one of the largest toy producers in Brazil, aims to export to the Arab market. According to the president at the company, Carlos Tilkian, Estrela plans to sell in the region products whose production is outsourced in China. “We are greatly interested in entering the Arab world. Our strategy was to do it through production in China, as producing in Brazil and exporting there is not very competitive at current exchange rates,” said Tilkian, in an e-mail interview to ANBA.
Tilkian believes that there are good chances for consumption in the Arab world of some of the brand’s games, like Pula Macaco, in which children hang monkeys on tree branches, Tapa Certo, in which it is necessary to hit a target, and Guerra das Aranhas, a web in which there is competition between spiders. Another line that offers good chances is Pim Pam Pum, in the line for initial infancy. The line also includes Xereta the dog and Brincando de Motorista (a small car panel with steering wheel), and they also have good chances for sale there.
Currently, between 70% and 75% of Estrela revenues come from its two factories in Brazil. The remains are imports from China, where part of the company toys are produced, by outsourced companies. To export to the Arab world, Estrela would ship toys made in China. “To us, maintaining competitiveness in the export market is important, the only way out is exporting products made in China directly, as bringing them to Brazil, for later export, would be too coslty,” said the president. The Middle East and North Africa are much closer to China than to Brazil.
Estrela, according to Tilkian, is producing in China due to production costs, which are cheaper than in Brazil. “This cost is due to macroeconomic factors like exchange rates, taxes levied on production in Brazil and high financial costs. If Brazil implements an industrial development policy, we may return to producing 100% here,” said the executive.
According to Tilkian, it is the Brazilian economic policy that results in companies producing in China. “To have competitive product prices,” he said. Estrela, however, would like to increase production in Brazil. “It all depends on macro-economic conditions. We have installed capacity to increase production immediately,” said the executive. It is all conditioned, according to Tilkian, to the removal of benefits that are currently granted to imported products. “Growing in Brazil means replacing imports, which could generate further jobs, taxes and development for the country,” he said.
The executive recognizes, however, that the domestic market is living a good moment and that the federal government is attempting to aid industry. “Our market is doing well, as there has been expansion of consumer buying power, and the federal government is working on improving the situation for domestic industry,” said Tilkian.
Estrela, according to the executive, hopes to grow 20% in 2012. Company revenues reached US$ 159.3 million last year and the main product on the Brazilian market is the Super Banco Imobiliário, which has been the most sold toy in the country for two years. The cash cow of company sales is its games line. Estrela also exports, but exports are low, according to Tilkian, and go mainly to Latin America.
Estrela was established in 1937, producing rag dolls and wooden cars and is printed in the memory of Brazilian adults as the largest toy industry in the country. The company created products that gained popularity in the Brazilian market, like Pega Varetas, the Susi doll and Amiguinha, which is the size of a child. The company also produced and still produces dolls of characters and games on Brazilian television. The company has units in São Paulo, Amazonas and Minas Gerais, it has a laboratory certified by the National Institute of Metrology, Standardization and Industrial Quality (Inmetro), which confers quality to products, and its factories are ISO certified, for quality management.
Contact
Estrela
Site: www.estrela.com.br
Telephone: (+55 11) 2102-7070
*Tradução de Mark Ament
