It has been sometime I've posted here - partly because of the multitude of things that are there to be read on the internet and partly due to the fact that I've become lazy and spend a lot of time reading unrelated things. But laziness is a different story and I shall discuss it at length some other time.
Now that I am in Mumbai, I have been visiting different malls in the city and a lot many times I go there with a relative who has a kid or with someone who wants to buy some gifts to their relatives' newly born ones. (Its baby boom in India I suppose) As a result, I have been visiting the kids section - especially the toys and games section in search of gifts for kids.
Games and toys have been a very important part of my childhood. Every summer, I used to eagerly go to toy shops in Mumbai, spend days deciding one toy/game (I was allowed one game per vacation) & then buy one at the end of my stay at Mumbai. So, going into this toys divison makes me kind of nostalgic.
According to different press reports, the size of Indian toy market is between Rs 7500 & Rs 9000 crore with around 15% growth expected annually. Based on this, it seems the demand of toys and games is huge and growing. However, when I look at the supply side, I am largely disappointed. The supply comes from some large global players like Funskool, Hamleys and ofcourse China. Global companies like Mattel, Lego, etc have also now started entering the market through the network of different retail super / hyper markets. However, 90% of the toys still come from the unorganized sector.
What I find disappointing in this supply side is that there is no Indian toy brand that is clearly visible among the so many toys and games in the market. Yes, quite a lot of toys are made in India but the brand is missing. Thee is a huge potential for some new player to establish in the market. Toys related to mythological characters aren't much visible in the urban market. I guess a toy brand which is related to mythological characters depicted in a modern style shall be a good idea to make a dent in the games and toys market jst like Indian comics did in the past by focus on traditional characters.
Another thing I've come to observe is that there is a huge gap in introduction of new products in some segments of this market. Now, the toys and games market can be divided into different categories like:
Now that I am in Mumbai, I have been visiting different malls in the city and a lot many times I go there with a relative who has a kid or with someone who wants to buy some gifts to their relatives' newly born ones. (Its baby boom in India I suppose) As a result, I have been visiting the kids section - especially the toys and games section in search of gifts for kids.
Games and toys have been a very important part of my childhood. Every summer, I used to eagerly go to toy shops in Mumbai, spend days deciding one toy/game (I was allowed one game per vacation) & then buy one at the end of my stay at Mumbai. So, going into this toys divison makes me kind of nostalgic.
According to different press reports, the size of Indian toy market is between Rs 7500 & Rs 9000 crore with around 15% growth expected annually. Based on this, it seems the demand of toys and games is huge and growing. However, when I look at the supply side, I am largely disappointed. The supply comes from some large global players like Funskool, Hamleys and ofcourse China. Global companies like Mattel, Lego, etc have also now started entering the market through the network of different retail super / hyper markets. However, 90% of the toys still come from the unorganized sector.
What I find disappointing in this supply side is that there is no Indian toy brand that is clearly visible among the so many toys and games in the market. Yes, quite a lot of toys are made in India but the brand is missing. Thee is a huge potential for some new player to establish in the market. Toys related to mythological characters aren't much visible in the urban market. I guess a toy brand which is related to mythological characters depicted in a modern style shall be a good idea to make a dent in the games and toys market jst like Indian comics did in the past by focus on traditional characters.
Another thing I've come to observe is that there is a huge gap in introduction of new products in some segments of this market. Now, the toys and games market can be divided into different categories like:
- Soft toys, dolls, hobby sets
- Educational games like puzzles/ mechanics, craft
- Group Board Games
- Plastic, battery operated & music based toys
- Cars, automobiles
New products are generally introduced in the categories of soft toys, battery operated toys, cars, etc. We can get to see a huge variety in these categories & new products being introduced regularly in these categories. The quality of toys in this category also seems to be getting better and better each day. (No comments on the Chinese toys)
However, in categories like Puzzles and group board games, the number of new additions has been dismal. While I do understand that introducing different shaped/sized products is far easier than developing conceptual games, it feels disappointing to see the same board games in stores as there were 15 years ago. I do see the same games like Monopoly, Scotland Yard, Life, Mechanix, etc. Yes, I did see some new offerings like Don - The game begins, Disney board games; but when I read the concept, the games didn't sound like fun where I, as a kid, would like to spend the whole weekend. Not much innovation is seen in this category of toys and games market.
One more thing I've come to observe is that the small stores meant exclusively for toys have ceased to exist atleast in the tier 1, 2& 3 cities. Now, toys form a section of a gift store or some stationery store. The fact that more and more toys are being sold in the malls means the toys are getting expensive. As such, the lower middle class and also the middle class is not able to afford these toys. I think more such stand-alone games and toy stores should be built.
At my hometown, I recall, we had a library of toys which allowed me to get one toy for each week. That way, I could come across a lot of different toys. I believe such concepts shall give a boost to toys circulation and also help children to imagine, develop and grow.
And last but not the least, with online shopping (e-commerce) increasing in double digits in India, online games and toy stores offer a huge scope. Players like Flipkart, infibeam, etc do have a small section for toys and games, but the variety isn't much and so offers a great opportunity for a new niche player to tap into the growing product e-commerce market.
In short, I believe that Indian games and toys market is still a huge opportunity for a big local player to tap into. Innovating board / concept games to make sure group games last for hours together, creating stand-alone toy stores for affordability, setting up online games stores for easy accessibility and introducing the concept of toy library are some things which can be taken to tap the huge potential Indian toy & games market has to offer.
