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International toy retailers and brand licensors are staving off competition from Chinese makers by competitive pricing, intense brand campaigns and even co-branding products for larger reach.
For starters, German toy-maker Simba has brought a life-size model of the popular protagonist Lightning McQueen car to India. The car from the movie Cars2 has come to India after a stint in many countries around the globe.
Shree Narayan Sabharwal, Business Head, Simba India, said, “The lifecycle of a property is too short. We are trying to establish a feel of neighbourhood international toy chains; something that kids can identify with. This kind of brand campaign will help us sell electronic toy cars at a competitive price. Most of the toys sold here are of Chinese origin and lack in quality.”
Sabharwal said lack of a pan-India brand had given it tremendous opportunities. The company said it plans to establish 10 stores by the end of this year. “Last year sales were low, but beginning this year things are looking up and campaigns like these will help us bring newness into the business.”
Chinese companies mostly operate in the electronic toy segment, manufacturing up to 70 per cent of the world's electronic toys. Most of the Indian manufacturers operate in segments such as soft toys, wooden toys, plastic toys, board games, among others.
Dream Theatre, which has the license right to popular character merchandises such as Angry Bird, Power Ranger and Kung Fu Panda, too, has been fending competition from Chinese products by co-branding tie-ups.
Decline in fakes
The company recently entered into alliance with Bata to create footwear with characters such as Angry Bird. “Bata has a huge retail and distribution network. Ever since this tie-up, there is a huge decline in pirated products. The high volume products have generated good sales and as many as 800 products in stationery, footwear and back to school category have been created,” Jiggy George, Founder-CEO, Dream Theatre, said.
Industry body Assocham expects the Indian toy industry to reach Rs 13,000 crore by 2015, from about Rs 7,500 crore at present.
Disney India is on a tie-up spree to establish a brand connect and speed up growth in the children’s products category. From tying up with real estate firms for Disney-inspired homes, to creating affordable watches by associating with Titan, the company is trying to push its brand.
“All our categories provide head-room for growth. We are making sure that the characters kids identify have a touch and feel experience to it. The association builds brands and also weeds out the fake market,” Roshini Bakshi, Managing Director (Consumer Products, Retail and Publishing) said.
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