Toy Retailing in India

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PROJECT REPORT

ON

Identification of locations for the toy retail venture between Reliance and Hamleys

Table of Content:

1.Introduction4

2.Problem Definition4

3.Review of Literature5

4.Research Gap Analysis7

5.Problem objective7

6.Data to be Used8

7.Research Design8

Type of research8

Methodology8

Primary Survey8

Experiential Survey8

Data Collection Method9

Secondary Sources9

8.Toy Industry In India:9

Toys and Games9

About Hamleys: History:14

More about the store:15

Different Products At Hamleys:16

Other Attractions In Hamleys:16

About Reliance Retail:16

About the Joint venture:17

9.Data Analysis and Interpretation20

10.Findings of Experiential survey:35

11.Factors under consideration when choosing a store location:36

12.Final location suggestions :36

13.Annexure:38

Questionnaire:38

14.References42

Introduction

Reliance Retail has tied up with the British toy retailer Hamleys Group to set up a nationwide network of exclusive toy stores. Under the exclusive franchise agreement, Reliance Retail will invest for setting up the network while Hamleys will bring in its expertise on designing stores, training staff and developing its private labels. Reliance Retail will pay royalty to the British company for 20 years.

The company plans to set up 20 stores in seven years across India. This includes two flagship stores of nearly 25,000 sq ft, one each in Mumbai and New Delhi. The regional stores will come up in Bangalore, Hyderabad, Pune, Chennai and Kolkata. Reliance is preparing to launch multiple standalone Hamleys stores, but will also expand the toy shop through the shop-in-shop format.

Reliance Retail targets sales of Rs 900 crore from this business. The Rs 2,500-crore Indian toy industry is dominated by unorganised players and is growing at 25% per annum. Almost 20% of the market share belongs to the organised players like Mattel and Funskool, and other modern retailers. Reliance is targeting a growth of 20% from its toy stores by launching a range of Hamleys products costing Rs 400 and onwards.

Reliance Retail will replicate the experimental elements of seven-storied flagship store of Hamleys in Regent Street, London, in some of its stores. It plans to adhere to the standards of the services and product quality offered by the British toy giant.

Problem Definition

What are suitable locations in NCR for the setting up of a flagship store for Reliance Retail’s foray into toy retailing?

Review of Literature

Studies show that in the USA, toys are more likely to be purchased by women than men, with their purchase incidence reaching 56 percent in 2003, compared to 43 percent for men. Consumers aged 25 to 44 are more likely to purchase items in this category, as these ages represent the prime childbearing and rearing age ranges. Purchase incidence drops off after age 45. Middle-income households making between $35,000 and $50,000 annually are the most likely to purchase toys, games, and dolls. Household size and presence of children are major predictors of purchase. Unsurprisingly, households with children are twice as likely to purchase toys, games, and dolls as households with no children. All education levels are equally likely to make purchases in this category. American parents cannot do enough for their kids. This may be due to guilt on their part over the lack of personal attention and is the simple reason behind the steady growth in the toy market. While children represent the core user market for toys (in USA), more adults are buying toys, not just for kids, but also for themselves. Toys are popular adult collectibles, and more toy companies are recognizing that adults, just like their kids, want to play with toys. Hence, location considerations will have to factor adult tastes also into consideration. Even in India,...
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