
Children's toys and clothing became cheaper, but debt, high interest rates and competition limit sales
Children's toys, clothing and footwear saw a drop in prices last year, but family debt, high interest rates and online and foreign competition are expected to weaken Children's Day sales.
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Toys and children's clothing registered deflation in the twelve months ended in September, but household debt reached 29.6%.
Children's toys, clothes and shoes became cheaper last year, but the lower price will not be enough to boost commerce on Children's Day, celebrated on Monday (12).
In the 12 months ending in September, toys and sporting goods were 0.89% cheaper, while general inflation measured by the IPC (Consumer Price Index) of FGV (Faculdade Getulio Vargas) was 3.94% for the period.
The prices of children's clothing fell 0.40%, and those of children's footwear, 3.21%. Among toys, bicycles became 1.98% cheaper, and dolls, 0.51%. For economist André Braz, from FGV Ibre, the prices of traditional gifts had a more favorable variation for the consumer this year.
The economist at the São Paulo Commercial Association (ACSP) Ulisses Ruiz de Gamboa, however, says that the lower price is not enough to encourage families to go shopping.
"It may be cheaper, but the issue is the availability of income. Everyone is in debt," he says.
The Peic (Consumer Debt and Default Survey), released by the CNC (National Confederation of Commerce in Goods, Services and Tourism), showed that the average commitment of family income with debt increased to 29.6% in September, compared to 29.3% in August.
According to Gamboa, despite the increase in employment, high interest rates and debt lead families to prioritize essential consumption, and there is little left over for the rest. For him, Children's Day will be weak.
Marcelo Mouawad, director of Univinco (Union of shopkeepers on Rua 25 de Março and surrounding areas) and ALBB (Brazilian Toy Shopkeepers Association), sees the issue from another angle.
For him, debt affects the average ticket, since whoever was going to buy a R$100 toy gets a R$60 one, for example. But what really weighs on us is the loss of relevance of the date and competition from other activities.
Mouawad says that Children's Day had more strength, with advertising on TV and in newspapers, and today it competes for attention with rides, parks in shopping malls and restaurants with toy areas.
Furthermore, there is competition from commerce with online stores. On platforms, prices tend to be lower and customers who compare a single item stop going to the store. In-person sales, says Mouawad, still have strength due to the variety of products and help those who don't know what to buy.
Another factor is the lack of tax equity in competition with companies from other countries. Mouawad sees tax exemptions for foreign products as unequal competition. He argues that it harms national industry and retail, since an item purchased for US$1 (R$5) in China can cost around R$40 to consumers in Brazil after taxes, shipping, insurance and distribution, while direct imports without taxation cost much less.
On Rua 25 de Março, a hub of popular commerce in the center of São Paulo, shopkeepers are divided between positive and negative perspectives for the coming days.
Edson Lima, 53, manager of a children's party supplies store, says that the movement is well below that of previous years. He cites the burden of taxes and rents and states that many stores in the region are closing.
A street vendor selling soap bubble guns was discouraged by sales and said the year was very slow. For him, children's preference for electronic items harms the performance of toy sellers. He did not want to identify himself.
João Cavalcante, store manager nearby 25 de Março, says that the company's focus at this time of year is Christmas and Halloween. He states that the purchase of toys has fallen in recent years, with the advancement of cell phones and the internet and, also, debt.
“Either buy a toy or pay the household bills,” he said.
But there are businesses that have gone through the opposite movement. Rita de Cássia, who has worked in a toy store in the region for 19 years, says that sales have grown. According to her, the owner estimates an increase of close to 10% compared to last year's sales.
She attributes the result to original products from well-known brands and, above all, to Pokémon cards. A collection that arrived this month, he says, boosted sales considerably. There are also many toys related to K-pop and the Sylvanian Families line of bunnies.
Rita also states that, after the pandemic, parents started giving toys again, worried about too much screen time. Furthermore, many adults today look for original products to collect.
"The collector knows the difference and so does the child. The difference in value is big, but parents still buy the original," she says.
The store's customers interested, for example, in Pokémon cards are varied. "From the age of 6, it doesn't matter if it's a boy or a girl, and it goes up to the adult. Why? Because the child collects and the adult sells", he says.
This is the case of Júlio Ventura, a businessman in the retail sector, who went to the streets to buy cards for himself and to resell. He says he has had a relationship with the cartoon since childhood, when he would run out of school to watch Pokémon.
For him, those who heat up the card market are the generation aged 25 to 35 or more, who grew up with these designs and now have an income.
Cards, he states, are both leisure and investment. Júlio says that he even resold two letters that he took from packages for R$7,500 — on which he spent around R$2,000.

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