Please Share this Post
The future of the toys business in India looks promising, with a vast potential for growth and innovation. This will open up a plethora of opportunities for manufacturers, retailers and consumers alike. here
Continue reading
1. The Future of the Toys Business in India
The future of the toys business in India looks bright, with ample opportunities for growth and innovation. With a growing population and steady birth rates newly formed parents are increasingly looking to invest in their childern’s growth to make it more interesting and joyful with a touch of education through buying a mix of new age traditional and educational toys thus fuelling the demand for high-quality traditional and educational toys.
The future of the toys business in India looks even more promising due to various government initiatives to push local toys manufacturing and make Indian toys companies more competitive with the western toy brands.
Here are four major points why the future of toys startup in India looks bright.
- Rising Consumer demand: India has a large and growing population, with a significant number of children and young families. The enlarging disposable income of middle class segment and changing lifestyles all contribute to a rising demand for sophisticated toys. This presents a substantial opportunity for toy businesses to tap into a growing customer base.
- Consumer Awareness: There is a noticeable shift in consumer preferences towards educational and skill-enhancing toys. Parents are increasingly seeking for toys that combine entertainment and learning together. The future is poised to cause a shift in households from traditional toys to innovative and educational toys.
- E-commerce Boom: The rapid growth of e-commerce in India has opened up new avenues for toy business. Online platforms provide wider reach, easy accessibility, and the ability to target specific customer segments. Toy startups can leverage e-commerce platforms to showcase their products, reach a larger customer base, and establish a strong online presence.
- Government Initiatives: The Indian government has introduced various schemes under make in India programme to support the local toy industry, under provisions such as the National Toy Action Plan. These initiatives aim to promote domestic manufacturing, boost exports, and encourage innovation in the toy sector. Local Toy business in India can benefit from such government support in terms of funding, subsidies, infrastructure, and policy incentives.
Start a Toy Business in India. A Quick Guide with 4 Important Points When starting a new toy Startup in India.
Here are some of the other important events happened recently in India to consider when starting a toys business in India and why the future of toys business is full of opportunity and potential.
- To boost India’s toy-making business, the government hiked up import duty taxes on imported toys to 60% starting in Feb 2020 – a huge increase from 20% prior.
- To make sure Indian kids are safe, DPIIT (Department for Promotion of Industry and Internal Trade) created the Toys (Quality Control) Order, 2020 (QCO). In order to cease the manufacturing and stop the import of cheap Chinese toys which are poorly made, toxic and harmful or fake toys in India.
- Toy manufacturing in India is set to get a boost with a new production-linked incentives (PLI) scheme.
- Two major toy clusters are being established in India – the Toy Park in Greater Noida (Uttar Pradesh) and the Koppal Toy Cluster in Karnataka. Both states are providing incentives to access land and get these projects up and running.
- The Yamuna Expressway Industrial Development Authority (YEIDA) has approved 134 companies to purchase land for their toy factories with an investment of about 4.10 billion rupees (49.71 million dollars).
2. Where does the opportunity lies for new Startups in Toy Business in India?
The toy industry is a vibrant and ever-changing market with plenty of opportunities for new startup entrants. With the acceleration of industrial technology, there has been an influx of innovative toys that delight children and adults alike. From interactive robots, educational and functional toys there are plenty of ways for entrepreneurs to capitalize on the growing demand for toys.
Although, there are number of new opportunities in toys and one should not be limited to few ideas and should test newer ideas in market. Here are three focus area one could consider to work in when starting a new toy business.
- Eco-friendly and Sustainable Toy Startups: There is a growing demand for eco-friendly and sustainable toys, as consumers are becoming more environmentally conscious. Startups that focus on creating toys from biodegradable materials or recycled materials can tap into this market.
- Innovative Educational Toys Startups: There is a growing demand for educational toys that promote learning and development in children. Startups that focus on creating such toys can cater to this market. Startups can focus on developing toys that cater to specific interests, skills, or developmental needs, such as STEM toys, eco-friendly toys, educational toys, or toys with augmented reality (AR) or virtual reality (VR) features.
- Gender-neutral toys and Concept of multiplicity – Gender-neutral toys are designed to appeal to all children regardless of their gender, encouraging them to explore a wide range of interests and play styles. The concept of multiplicity in objects goes hand in hand with gender neutrality. It helps break away from traditional stereotypes and offer a broader spectrum of play experiences among children. These toys can include building blocks, puzzles, art supplies, science kits, musical instruments, and other toys that foster a child’s holistic development without reinforcing gender norms.
- Customization and Personalization Toy Startups: Personalized toys to individual preferences and allowing numerous on-demand customization options can be a unique selling point for startups. By offering customizable features, such as engraved names, unique designs, or personalized messages, startups can create a more personalized and memorable toy experience for customers especially among young teen and adults.
What is the process of Toys Manufacturing| Here are 7 Important Points you Must Read Before Starting a Toys Manufacturing business.
3.Choosing between Toys Manufacturing or Retail Toy Store When Starting a New Toy business in India?
When starting any new business, the choice between starting a manufacturing unit or a Retail store front is an important decision to make. Both choices come with their own set of advantages and disadvantages, so it’s important to carefully consider the long-term implications and budgetary constraints of each before making your decision. There are also businesses that combine both manufacturing and distribution via wholesale or retail operations to have better control over the supply chain and expand their market presence though the cost of such operation may escalate you budgets northward.
Toys Manufacturing and Retail Toys stores are two distinct components of the toy business ecosystem. Here’s a comparison between toy manufacturing and toys stores:
A] Toys Manufacturing
The toys manufacturing process involves designing, sourcing materials, manufacturing, quality control, packaging, and shipping. The design process involves creating sketches, diagrams and prototypes to test the toy’s functionality. The manufacturer sources materials required for the toy such as plastic, metal, fabric, or wood.
The manufacturing process involves injection moulding, casting, cutting, shaping, colouring and assembling the toy parts. The toy undergoes strict quality control and checked for various safety standards to ensure it meets the safety standards guidelines set by the government of India. The toy is packaged with instructions and safety warnings, then shipped to retailers. The process requires specialized equipment, skilled labour, and adherence to safety standards.
Advantages of Starting a Toy Manufacturing business:
- Control over the production process: Toy Manufacturers have complete control over the quality, standard and production timeline, and customization of their toy products.
- Branding and differentiation: Manufacturers can establish their own Toy brand identity and differentiate themselves from other toy businesses based on their products features, quality, and innovation.
- Potential for higher profit margins: Most Toy manufacturing companies can capture a larger portion of the profit margin compared to selling through retail toy store.
What are the Licenses and permissions for Toys Business in India.
B] Retail Toy Store
The retail toys store process involves managing inventory, merchandising, sales and customer service, marketing, operations, and Profitability and Brand building. The toy store must also manage inventory, manage supplier, negotiate pricing and payment terms with vendors, and comply with all consumer safety regulations and National Retail Trade Policy. Staying up-to-date with latest trend in toy industry and changing consumer preferences is also important.
And finally, Brand building which is a crucial aspect for a toy store to establish a strong presence both online and offline, differentiate itself from competitors, and create a loyal customer base. Overall, the retail toys store process involves a range of tasks and responsibilities, all of which are essential for running a successful and profitable Toy Store business.
Advantages of Starting a Retail Toy Store business:
- Direct interaction with customers: Retail Toy stores allows direct engagement with young customers of all age, providing an opportunity to build relationships, understand their needs, and offer customisation experience and personalized service.
- Convenient shopping experience: Retail Toy stores provide a physical location where kids and parents can both see, touch, feel and try products before making a decision to purchase. They offer immediate gratification and visually appealing atmosphere which initiates a compulsive buying behaviour among customers due to instant availability of huge and varied range of products.
- Local Presence: Retail Toy stores can establish a local presence and attract customers from the local area as well as surrounding areas who would want to visit a physical store over online store to buy toys. They can leverage local marketing efforts and create a sense of community and branding.
In Conclusion.
Choosing between toys manufacturing and retail stores depends on various factors, including the business model, resources, market demand, and business goals. Some companies may focus solely on manufacturing and sell their products through wholesale or online channels. While Others may opt for retail stores to directly reach and serve customers. Ultimately, the decision depends on the specific industry, product, target market, and overall business strategy.
50 Small Business Ideas An Outrageous List of Unique Business Ideas You must Read Now!
How to Start a Niche Online Business in 2023| Top 7 Really New Niche Online Business Ideas For you to Start in 2023.
Start a Toy Business in India. A Quick Guide with 4 Important Points When starting a new toy Startup in India.
Top 12 AI based ChatGPT Business Ideas that You can Start Today!
Please Share this Post
