Indian toy industry cannot meet domestic demand, expectations | India News

NEW DELHI: Three-year-old Tejas celebrated his birthday on August 31, a day after Prime Minister Narendra Modi highlighted the Indian toy industry on his radio show Mann ki Baat. Modi stressed the need to increase local toy production and increase India’s share in the global toy market, which is set at Rs 7 lakh crore.
All the toys that Tejas received as birthday gifts – a monster truck, a musical carpet, a Hungry Hippos game, and a toy gun that emits sound and light – were made in China. Her birthday kitten reflects the reality of the toy industry in India – estimated at just 5,000 to 6,000 crore rupees, which is less than 1% of the global market. It gets around 25% of the Indian toy market, with the rest dominated by Chinese toys. If you take Chinese-made toys off the market, local manufacturers will have to scramble to meet domestic demand. Like, it’s happening now.

Toys made in India only cover 25% of the national toy market (Photo file)
Due to the lockdown and an increase in import duties on toys, the supply of Chinese toys to India has declined, the manufacturers said. “But at the same time, the demand for toys has increased over the past three or four months because the kids are locked up at home and asking for more toys.
All of these factors have resulted in an increase of about 25% in the domestic demand for toys, which we are trying to satisfy by increasing production… but it will take us some time to do so, ”said Ajay Agarwal, a toy maker. in Delhi and the chairman of the Toy Association of India, an organization of toy manufacturers, exporters, importers and traders with over 500 industry members.
While organized manufacturers like Agarwal can grow by automating or hiring more manpower, around 60% of India’s 3,500 toy makers operate in the unorganized sector, from small units sometimes with as little as five employees. They don’t have the capital to suddenly increase production.
The Indian market has not always been dominated by Chinese toys which started pouring in after liberalization. As a result, many toy factories have closed over the past 30 years; they could not compete with toys made in China, especially electric toys.
“We lack the material to make electric toys. For this we have to import machines from South Korea and Japan and at the moment they are expensive to get with 34% import duty. If the government reduces the tariffs, we can also start making electric toys. There is great potential for growth in this industry, ”Agarwal said. Indian manufacturers specialize in board games, soft and plastic toys, pull toys, play dough, and puzzles.
But we have a skilled workforce – making toys is labor intensive. If imports go down, more and more investment will flow in, ”said R Jeswant, CEO of Funskool India, one of India’s leading toy brands.
At Kiddi Land, a toy store in Amar Colony, South Delhi, up to 70% of the shelf space is occupied by Chinese toys and 25% by Lego, made in Denmark. “We also import from Thailand, Vietnam, the Philippines… Indian toys are good but they don’t make electronic toys,” said Sanjay Pahwa, owner of the 40-year-old shop.
Suhasini Paul, a Delhi-based toy designer who lived in China and visited many toy factories there, said the Chinese produce all kinds of toys, from the cheapest to the most expensive with high quality. “But due to budget issues, our toy importers only bring cheap Chinese toys to India,” Paul said.
Manufacturers are complaining that retailers are not giving enough space to Indian toys. “With Chinese toys, they earn better margins and therefore prefer to store them more,” said Manish Kukreja, CEO and Director of Shinsei Toys and Chairman of the All India Toy Manufacturers Association.
Kukreja added that if retailers reserve 25% of shelf space for toys made in India, it will give local manufacturing a big boost.
To concern India’s toy industry cannot meet domestic demand, expectations

Source link

About Lola C. Chapman

Check Also

Sex toy industry adopts voluntary safety standards

The multibillion-dollar sex toy industry has passed its first global safety standards amid a sales …