17-01-2013, 12:11 PM
PLAYERS OF TOY INDUSTRY IN INDIA
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INDUSTRY PROFILE
Toys are perhaps as old as the mankind. India has a glorious tradition in toys. Toys act as cultural ambassadors reflecting 5000 YEARS OF Indian civilization. The people of India have a very special affection for toys because of inner mysteries, traditions and myths of their culture. In early India, games and sports were very much concerned about the development of the physique and for the art of offence and defense. Also games were considered a kind of recreation, which played a vital role in the development of a man’s personality.
The oldest toys date back to Indus Valley civilization. The perfect modeling of human and animal figures at Mohenjo-Daro and Harappa are testimony to the technical skills of craftsmen who could cast images in metal using the wax process. They could cast in clay and chisel in stone with ease, creating an art, worthy of these great centers of civilization. The excavated toys and dolls found in Harappa and Mohenjo-Daro have been carefully preserved by the museums in India.
The toy industry in India is a late starter. Till early 1980’s Indian toys were not in a position to expand in the domestic market substantially. The toy industry in India is concentrated mainly in the small and cottage sectors, with about 2000 manufacturers in all. The manufacturing units are clustered around Delhi, Mumbai, northern state of Punjab, Uttar Pradesh and Haryana, also some in the Southern State of Tamil Nadu and Karnataka and in other clusters across India’s central states. They produce a wide variety of items ranging from plastic and metal toys to electronic items. Dominant players in the toy industry are the plastic toys. The Indian toy market is presently characterized by limited product innovation and insignificant expenditure on advertising or brand building.
PLAYERS OF TOY INDUSTRY
The Indian toy industry is fast growing. The past one-decade has revealed that the Indian toy industry has made quick strides in terms of exports and production. The scenario of the toy industry in India has changed substantially after the advent of globalization and liberalization in the nineties. With the lowering of tariff barriers, melting of international trade boundaries, the domestic market is now open and the Indian industries are facing the challenge of competition from distributors and multinational competitors who import cheaper products mainly from the South East Asian Countries and China.
Major players who are having global operations are
a) Mattel,
b) Hasbro, and
c) Bandai.
Mattel Toys are the largest toy manufacturer in the world. Bandai of Japan and Mattel have a strategic alliance worldwide for marketing each other’s product. The company sells toys under the brand name of Barbie, Hot Wheels, Star Beans etc. The Mattel Company is a US $ 30 Billion company out of which their market share in India is around 5%.
The size of the Indian toy industry is about Rs.4000 crores of which Rs.1500 crores of revenue is generated by the organized sector while Rs.2500 crores generated by the unorganized sector. The Indian toy industry is characterized by small-scale establishments and is highly labor intensive. There are about 1500 units operating in the cottage sector alone. According to industry statistics, the toy sector is estimated to be growing at 8 per cent, with the organized sector growing at 18 per cent, against a negative growth in the unorganized sector. The largest share of this market goes to electronic toys segment, followed by plastic Board games & puzzles and stuffed toys. The dominant player in this market is China, which accounts for 52% of the total world production. Like many other industries, the Chinese competition is a major issue for domestic toy manufacturers, which has resulted in a chaotic market condition.
SWOT ANALYSIS OF INDIAN TOY INDUSTRY
STRENGTHS
a) Growing large domestic market.
b) India is the 2nd largest populated country in the world.
c) Increase in demand due to rise in the disposable income of domestic consumer
d) Growing confidence of both- domestic and international buyers in the Indian toy industry
e) Availability of most of the raw materials
f) Availability of skilled manpower at comparatively lower cost
g) Support structures available for obtaining finance
h) Innovation skills
WEAKNESSES
a) Many toy manufacturing units are tiny in size hence Low Volume of Production
b) Lack of Research and Development facilities
c) 20% age group of 1 to 12 year.
d) Toy specific designers are not available
e) Absence of strong & professionally managed Toy Industry Associations
f) Absence of focus on export
g) Inadequate technical capabilities particularly in electronic toys and video games
h) Insufficient/ inconsistent vendor support
OPPORTUNITIES
a) Well developed market -- domestic as well as overseas
b) Growing domestic market & buying capacity
c) Increasing surplus income of Indian middle class
d) Toys recognized as a better medium for education in a play way method
THREATS
a) Competition from international players as they started manufacturing operations in India
b) China and other countries corner major market share of the growing Indian toy Market
c) Shift in market demand to electronic toys in which India does not have competitive edge
d) Enhanced brand consciousness amongst Indian consumers
e) Children devoting more time to computers/ internet/ studies, leaving less time for games and toys
INTRODUCTION TO THE ORGANIZATION
Opportunity exists everywhere; even the simplest moments of life can turn into a thriving business prospect. This principle seems to be the bases which lead to the creation of MadRat Games. MadRat Games creates innovative and meaningful games for the masses.
Bangalore based MADRAT games Pvt ltd was set up in the year 2009 by three IITians whose visiting cards designate them as the Head Rat Rajat Dhariwal, the Design Rat Madhumita Halder and the Ideating Rat Manuj Dhariwal. Mad Rat is the company which has designed and produced the world’s first Hindi word game AKSHARIT.
The story of Bangalore-based MadRat Games Pvt. Ltd began when Manuj Dhariwal, studying at the Indian Institute of Technology (IIT), Guwahati, in 2005, was working on his project to develop a game which could connect the third generation and first generation. Interestingly, it was during a 55 hour long train ride from Guwahati to Jaipur the Ideating Rat Manuj Dhariwal who used to play board games for time pass in train got the idea of a board game in Hindi. There he decided that his design project would be to create a board game in an Indian language. The game was on the lines of Scrabble, except that it was in Hindi.
As technical graduates, Manuj, Rajat and Madhumita found themselves constrained by the analytical and logical business world. The free-spirited entrepreneurs wanted to explore the avenues of an unconditional career. Driven by eamestness to contribute to the field of education, and propelled by a passion for Indian languages. Rajat and Madhumita, now each other’s better halves, began teaching at the Rishi Valley School in Andhra Pradesh. Their exposure to the organic style of teaching at Rishi Valley, where the duo taught for four years, encouraged them to venture into the entrepreneurial labyrinth.
A START-UP’S STARTING TROUBLES
Aksharit is the vehicle through which the trio launched their in-house production about five years ago, and though the journey for MadRat Games, their company, has been challenging so far, it has been enriching and filling at the same time.
“Designing board games seemed a suicidal idea in today’s age of fancy computer and video games. Explaining why we were making games in Hindi was another story in itself,” says Manuj Dhariwal, 27, a pioneer in the field of vernacular board games. English is the aspirational language today; why Hindi? Governments are hopeless: you can never work with them ethically! These comments are just part of a typical day in the lives of Manuj, Rajat Dhariwal and Madhumita Halder, three young inventive and enterprising individuals responsible for developing Aksharit, the world’s first board game in Hindi.
Getting Investment was tricky. Eventually the founders self-funded the venture through initial investments of Rs.25 lakh, collected from friends and family as investors. This got the ball rolling for Aksharit. As the ‘Rats’ kept burrowing deeper into their business, they encountered quite a few obstacles. “Hiring right people, maneuvering the business, and learning on-the-go are challenging,” says Manuj.
Not without reason, through; Madhumita recalls the time when she had to overlook the production by herself. Befriending non-Hindi speaking workers at the manufacturing unit, supervising production, developing a rapport with vendors-she has to dive into the raw operations of the firm. From sending couriers to sweeping their office floor, the trio has experienced the grind typical of start-ups such as theirs.
PRODUCT PROFILE
Aksharit will help children learn the language faster. Children find the game interesting and engaging and it with friends from school, or with family at home leads to a better grasp of Hindi. Initially positioned as an entertainment tool catering to families, Aksharit soon evolved into a learning aid for children. Basic problems related to the usage of matras have been addressed through this game. “Children enjoy playing Aksharit. Their Hindi language skills have developed considerably. Now, they also understand what they’re reading. They can create new words and express themselves which is a great achievement.