Welcome to the colorful world of teddy bears, singing dolls, miniature pianos that play nursery rhymes, battery operated cars and stuffed dogs and rabbits that walk, talk and shake hands. In one word: Toys. Toy merchants of yester years gave shape to the creative fancies and dreams of young ones and grow-ups alike. Once upon a time, toys were given away as wedding presents to the child bride. Today, toys not only provide a diversion but also a colorful canvas for depicting Indian life in its plethora of cultural beauties.
The world market has seen various upheavals due to changing consumer preferences, new fads, technological advances and trade liberalization. Countries like China have marveled the world with their low cost manufacturing expertise while at the same time astonished them with their quick imitation, leading all the gigantic players of the world to act on their feet and formulate strategies to counterattack them and safeguard their shares.
India too has seen a shift in focus from traditional board games like Chess (Shatranj) and Ludo (Paasa) and sports like cricket to video games and consoles, puzzles, and Monopoly. The traditionally scattered market has shown signs of consolidation with the entry of companies like Reliance ADAG and Mahindra & Mahindra who are both expanding the market and adding sheen to it.
India as a developing economy is a hotspot for MNCs like Mattel and Hasbro which have now become household names with Barbie and Monopoly respectively. Big retailers of the world which exclusively cater to this segment include Toys R Us and Hamleys, which house the best brands of the world and add a service dimension to toys. This document discusses the various classes of toys, the current global scenario for toys, how China has affected the global toy industry, India’s market and its growth prospects.
1. INDIAN TOY INDUSTRY
The Indian toy industry is as old as our heritage. The range of toys manufactured in India reflects our cultural diversity. Industry set to reach 13000 crore in the next three years, from current value of Rs. 6500 crore (retail turnover) where 10% constitutes of organized sectors and 90% constitutes of unorganized sector. Since the last four or five years the Indian Toy Industry has shown a healthy growth rate. The industry is growing at a compounded annual growth rate (CAGR) of about 20 per cent at present.
According to a Euromonitor study, spending on toys and games in India is set to grow at 157% between 2009 and 2014, much faster than other Asian countries such as China (84%), Taiwan (35%), South Korea (33.1%) and Singapore (17.2%).
The Indian toy industry caters to about 40 million kids (20 percent of India’s Population) in the age group of 12 years across the country. The estimated growth is based on increasing consumerism and a growing population in the country. It is large and growing which needs more organized approach to face the challenges of factor distribution & marketing. But domestically manufactured toys account for only 15 per cent of the market and the rest of the market is flooded with imported toys. The producers are mostly based in the Delhi, Mumbai, Northern State of Punjab, Uttar Pradesh and Haryana, also some in the Southern State of Tamil Nadu and in other clusters across India's central states.
Many of these toys are usually imported from countries like Dubai, China, Korea, Malaysia, the UK and the US. The Chinese toy market is also flooding the domestic market but Indian markets still have design or modification to some games that reflect Indian taste in them which is absolutely true. Social relevance is majorly used as a factor that is being used.
Play, with emphasis on safety and learning, are the core foundations for the toy industry in India. This industry is predominantly confined to micro, small and medium-scale...