International brands continue to dominate Mexico toy, game market

Mattel and Hasbro account for a third of the country's traditional toys and games market while Lego takes in more than half of the sales from the construction category.

Mexico's economy continues to recover from the recent slowdown in 2012 and 2013, leading to a noticeable up in sales of traditional toys. Being a dynamic and growing market in North America, the country has since seen an influx of international businesses competing for value shares, according to a report from Euromonitor International.

This proves to be a challenge for domestic manufacturers as international businesses have been quickly dominating Mexico's toys and games industry for almost 20 years. These brands and licenses that the models carry are ingrained in consumers' minds, further increasing the products' popularity and sales.

For instance, Mattel México SA de CV and Hasbro de México SA de CV account for about a third of traditional toys and games sales in the country. Lego, representing the construction toys category, takes in more than half of the market share for this niche.

Another player to watch is Spain's Imaginarium, which is known for its high-end toys that are educational and durable. The company's popularity and sales are steadily rising, thanks in part to its marketing strategy that focuses on buying experience and visual merchandising.

Other new players, including UK's Hamleys and Spain's EurekaKids, are still looking for their niche.

Currently, 96.8 percent of distribution of toys and games are store-based, led by grocery retailers at 46.3 percent.