an overview
OF TOY AND CHILDREN PRODUCTS
IN
ROLE OF KIDS INDIA AS THE INDUST DUSTRY AND THE
RY MODERATOR
Being the second largest country in the world with a
population of over a billion people, India surely is the
land of opportunities. The target group for the toy and
children product industry, i.e. the age group of up to 18
years, is around 41 percent of the total population of
1.3 billion. The 2000 crore industry in India surprisingly
comprises only of around 10 to 15 percent
domestically manufactured products. The rest of the
market is dominated by the well- known international
brands and the cheap unbranded product range
which mostly comes from China.
The difference surely is huge. Let us try and find out
what demotivates Indian manufacturers and why they
hold back and leans on imported products instead.
Most of the parents in India have always thought of
toys as just a tool to quiet the kid instead of trying to
find out the toys that could be interesting and useful
for the development of the child. Although the
importance of toys has changed a lot in the eyes of
the “Generation X” parents in comparison to parents of
the Baby boomer 1 and 2 generation, many parents
are still not giving enough importance to the impact of
toys on their children’s development which leads
them to buying cheap products.
There always seems to be a comparison between
Page 02 | Kids India Mag Issue 2 : Sept 2017
India and China but China produces around 70
percent of the toys in the world. This already gives an
idea why production costs are so low.
Even though labour is abundantly available,
manufacturing in India is still costlier than importing
products due to the import duty of 20 to 30 percent on
raw material, whereas a ready to sell toy can be
imported at a duty of 5 percent only. The retailer then
imports products that are lower in quality, easily
available, with no warranties and of course cheapest.
This harms locally producing Indian manufacturers
who are not able to compete with such low cost
products.
TOY MARKET SHARE IN INDIA
The Indian toy market is dominated by small and
medium enterprises (SME) that either import or
manufacture at a small scale. With the industry being
so fragmented, it is difficult to find out the exact
figures, but the major brands in the industry have a
total of 25.3 percent of the market share.
Funskool
India Ltd.
10.9%
Mattel Toys
India Pvt.
Ltd. 7.2%
Simba Toys
India Ltd.
7.2%
Zephyr
Toymakers
Pvt. Ltd.
2.4%
My Baby
Excels Ltd.
1.9%