After PM Modi’s announcement on banning Chinese products and toys while increasing the import duty from 20% to 60%, let us take a look at the toy industry of India and the World.
Crux of the Matter
World Toy Industry
- According to the NPD Group (formerly known as The National Purchase Diary Panel Inc. and NPD Research Inc.), Global toy sales increased by 9% in the first half of 2020 (January-June).
- Sales of toys in Europe increased during May and June by 9% and 11% despite the restrictions of lockdown.
China’s Toy Industry
- According to International Business Information Systems (IBIS), China’s toy market size is said to be at $41 billion with an annual growth rate of 3.3% in the last five years (2015-2020). It also manufactures about 70% of the world’s total toy products.
- China’s toy market was said to be at $14.9 billion in 2019.
Indian Toy Industry
- The toy industry of India comprises of 4,000 micro, small and medium enterprises (MSMEs) in the unorganized sector.
- In 2019, the Indian toy industry was worth $1.75 billion, with a compounded Compound Annual Growth Rate (CAGR) of 15.9% from 2011 to 2018.
- According to the Information Management Research Centre (IMARC), the industry is estimated to cross $3.3 billion by 2024, with a CAGR of 13.3 %.
Prime Minister’s Announcement
PM Narendra Modi, in his monthly speech of ‘Mann Ki Baat’, addressed the startups and entrepreneurs to team up and develop toys and gaming systems based in India to help promote the “Vocal for Local” movement. He asked the startups and entrepreneurs to utilize the rich heritage of India in formulating new gaming systems and toys which will aid in increasing the contribution of the Indian toy industry globally. The government will provide space for a toy cluster where more than 200 factories could be, set up in the Delhi-Mumbai Industrial Corridor, which can be a huge contribution to the industry and in making India a hub.
- Funskool (India) Ltd. is an Indian toy manufacturing company founded in 1987 with headquarters in Chennai, Tamil Nadu. In 2014, Funskool surpassed Mattel to become the market leader in the mid to premium range of the Indian toy market. Funskool has published the Monopoly board game in India since 1987.
- Hamleys is a British multinational toy retailer, one of the oldest and largest in the world. The chain has 15 outlets in the United Kingdom and also has more than 90 franchises worldwide. In May 2019, Reliance Industries announced that it had acquired Hamleys for £67.96 million (around ₹620 crores) in an all-cash deal.
- Kondapalli Toys are the toys made of wood in Kondapalli, Andhra Pradesh. Bommala Colony translates to Toys Colony in Kondapalli is the place where the art of crafting takes place. It was registered as one of the geographical indication handicrafts from Andhra Pradesh.
- NPD.com – NPD reports on First Half 2020 Global Toy Industry Sales
- ZeeNews – Indian Toy Industry to Get a Big Push After PM Narendra Modi’s Digital Strike Against Chinese Apps
- HindustanTimes – India’s First Toy-Making Hub Pins Hopes on ‘Vocal for Local’
- TheToyAssociation – Global Sales Data
- IBISWorld-Toy Manufacturing Industry in China – Market Research Report
- IndiaToday – A Sad Toy Story
- FinancialExpress – PM Modi Urges Startups To ‘Team Up for Toys’ For India to Become Global Toy Hub