There are around 4 crores kids in the age group of 4 to 12 years
Unlike talks and observations about the domestic toy market coming to a close due to the dominance of the international markets exporting their produce, things seem to be playful for the industry. The sector is growing as there is a steady growth of kids count and the demand of country made toys still stays strong. Though the imported toys from countries like China, Korea, UK and other parts have gone up; the domestic producers have found some ways to tackle the steep competition both from the west as well as national counterparts. The industry previously lacked the sense of innovation and there was a break in introducing new games, toys but presently things have flipped towards betterment.
The current Indian toy industry is valued at 7,500 crores INR and is projected to grow at a CAGR of 20%. The sector according to the observers will touch the mark of 13,000 crores by the end of 2015 which will be an above expectation increase if achieved. Toy industry in the country, similar to others is divided as organized and unorganized sorts. The unorganized manufacturers account to a major share of 70% of the market whereas; the organized sector houses some big names who have managed to hold on into the industry due to their experience. The industry employees more than 25 lakh people and has grown to about 2,000 units of toy making plants.
However going by the market research information, the domestic toy and games makers may get better as they only cater a mere 15% of the total market in a country with over 4 crores children in the age group of 4-12 years. Experts feel the massive emergence of imported toys and the introduction of technology enabled games like video games, computer gaming and mobile gaming is proving heavily injurious for the sector. Further the traditional toy making industry is marred with the disabilities in marketing, innovative product manufacturing, distribution and poor credit availability making survival even tougher. Popular brands like Funskool, Lego, NICI, Mattel, FisherPrice and Hasbro International cater the Indian toy market with games ranging from education, puzzles, mechanical, vehicles (both electric and manual) and stuff toys.
Latest update from the industry is the introduction of the Indonesian toy company Groovy which has entered into a high investment venture with a Hyderabad based distributor Apogee. The company in its first phase is eyeing the market in the southern regions of the country and is planning for a further expansion later.
The company aims to achieve a business worth 50 crores from the Andhra region alone, thereby taking the level of competition to a deeper end.