The Indian toy industry is close to Rs 800 to Rs 1250 billion. 10 % is organised and 90% is unorganised. Funskool is the leader in organised sector with 30% share in organised market. India is ranked 8th in the world in toy industry where as UK is rated as No 1 in toy industry.
The Indian toy industry is estimated at about 400 million US dollars and forms only 0.5 percent of the global market. However, the growth of the Indian middle class and demand for quality toys are likely to spur its growth in the coming years. The share of internet retailing in sales grew from 1 % in 2007 up to 18 % in recent years. In 2017, traditional toys and games in India grew by 6% and further growth is expected.
Indian Toy Manufacturing
In recent years, cities like Ahmedabad, Bangalore, Hyderabad and Pune have become the most important manufacturing sites of the Indian toy industry. Among the local manufacturers in India about 59 % focus on the production of cheap and unbranded toys. Hence they find it difficult to fight with the International brands.
Competition for the Industry
The organized players of the Indian Toy Industry are facing stiff competition from the unbranded Chinese imports which are being sold at cheaper price and thereby affecting growth. However, with more awareness of quality branded products, more promotions and new launches, the demand is slowly increasing for these brands.