Internet & Chinese Products Harming Indian Toy Industry: Study | SupportBiz


Internet & Chinese Products Harming Indian Toy Industry: Study

According to the study, Indian toy industry is estimated to be around Rs 8,000 crore as on March 2013 and is expected to grow at 30% by 2015 because the middle class population is spending huge amounts for their children.

New Delhi: With huge competition by the Chinese products, Indian toy industry is almost on the verge of collapse, as the Chinese toys are offered at a very cheap price and offers a variety of products.

A recently study on toy the industry by ASSOCHAM, “Indian Toy Industry- the current scenario”, reveals that, nearly 40% of Indian toy companies have closed down in the last 5 years and rest 20% on the verge of collapse as Chinese products are flooding into Indian market, the biggest threat to the Indian toy industry.

China has the largest toy market in the world and accounts more than 45% in the World’s toy market whereas India’s toy Industry has a share of just 0.51%, reveals the study.

“Only 20% of the Indian market is served by Indian manufacturers and rest by import of toys from different countries mainly from China and Italy. According to the study, it is found that nearly 40% of toy companies have already closed down,” said D S Rawat, Secretary General ASSOCHAM.

The major toy producing units are located in Delhi. Around 50% of the toy units are in Delhi and NCR, 35% are in Maharashtra while the remaining 15% are scattered all over the country. The toy industry in India is concentrated mainly in the small and cottage sectors, with about 4000 manufacturers in all, adds the study.

Indian toy manufacturers are facing difficulty in surviving in the market. Nearly 2,000 SMEs have closed so far in the last 4-5 years with the rise in imports from China & Italy. The manufacturers mainly from Allahabad, Delhi, Kanpur, Lucknow and Patna have closed down, added MrRawat.

Internet has also had a play to role as children are becoming more addicted to playing games on mobiles or internet which they used to play with toys.

Monish Ghatalia, founder,, says, “The toy industry in India today will definitely face a challenge from the rise in the usage of internet among children of a higher age group, who we can aptly be described as the ‘digital natives’. These kids have already started preferring tablets over teddy bears for the engagement that it offers over traditional toys.”

“Changing mindsets of the audience which will help physical toy makers make more creative decisions when it comes to new products. (balancing a child’s aspirations with a parent’s thought process)” added Monish.

Research and Development can also help the toy industry to grow as it would help the toy makers to find out what new and innovative games would stuck in kid’s mind.

Philip Royappan, marketing manager, Funskool india ltd, said, “R&D is critical to survive in the toy industry, it is a basic engine of economic and social growth. Considering the challenges that the traditional toy makers are facing today, it is of utmost importance to have a stable r&d team working towards achieving the best standards in the toys and games that are designed.

“The main challenge is to retain the interest of the children. Added to this, is the rising number of players in the toy industry”, added the statement.

Shree Narayan Sabharwal, business head, Simba toys, said, “The main challenge faced by the toys industry is from cheap fake toys which are made from sub-standard material and are harmful for the kids. awareness through various marketing campaigns around the need for safety standards and to educate the customer to make the right choice.”