Toy company Injusa has crossed the pond. Ibi company starts production as planned in Mexico A platform that will allow you to increase your sales in this country as well as make a short-term jump to the United States. Production is initially aimed at passenger vehicles, and it is planned to reach 30,000 units and achieve a turnover of 1.2 million Euros in this first year.
As with the toy industry in general, Injusa, a company dedicated to the production of electric vehicles and passenger vehicles, is not experiencing its best moment. The decline in consumption since the outbreak of the pandemic has been exacerbated by the fact that: When the company’s products are in the mid-to-high range, the products that work best are the most economical..
This situation was also reflected in sales, without going beyond the last published figures corresponding to 2022, which indicate a 21% decrease in turnover. also for overstock that many customers face with this practice and likewise as a result of the increase in costs in the context of inflation. Although the results have not yet been formalized, the situation is expected to improve slightly in 2023, although the outlook remains complex.
But far from throwing in the towel, The company decided to launch an ambitious market expansion plan, one of the key elements of which was the manufacturing of products in Mexico.. The firm began production in the Aztec country last December after striking a subcontracting agreement with a local manufacturer, considering it a cheaper alternative than setting up its own factory. According to the company’s own statement, the aim of this is to make the products more competitive in terms of prices in this market by saving on transportation costs from Spain.
Unfair, stakes from the beginning Taking advantage of new business opportunities in the region with products that suit the tastes, interests and needs of the American people. In this sense, the first products produced were rider motorcycles, which were basic injection models without electronics and should be the cornerstone for expanding the product range from here on. And always, yes, to maintain the same quality of the products produced in Spain, where the same materials and molds will be used, with comprehensive control of the production processes.
Prospects are good; So much so that the toy company plans to increase its sales in Mexico by 60% this year. 30,000 more units and a turnover of around 1.2 million euros. In the short and medium term, the aim is to increase the company’s revenue in this country from 11% to 20% of the group total.
These are short-term goals, but the company’s market-level goals are much broader and focused on the US. So while distribution in Mexico will begin immediately, Discussions are already taking place with potential North American customers We aim to establish business relationships as soon as possible.
However, Injusa will not limit itself to these two markets because The start of production in the Aztec country also opens up many possibilities for penetration into other Latin American regions.due to the facilities opened to transportation and also because of the determination to produce products linked to local tastes, which, as mentioned, do not always coincide with European tastes.
But the toy company has high expectations for this new business project, which it hopes will serve to increase both sales and billings. In this sense, in addition to digitalization, the company has not stopped investing in modernization and energy efficiency at Ibi facilities. In fact, it has its own department to manage online sales and thus adapt to new market trends.
Likewise, it has been renewing its licenses with different brands in recent years. Porsche, BMW or Disney, among others. Likewise, it maintains its garden and pet range, with a clear commitment at the time to diversify production and deseasonalize sales.