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Chennai-based toy manufacturer Funskool will focus on increasing its footprint in tier -III towns in India, where there is a latent demand for branded toys.
R Jeswant, Senior Vice-President of Sales and Marketing, Funskool, told BusinessLine , that in the first phase, the company plans to enter 75 towns across Chennai, Bengaluru, New Delhi, Kolkata and Mumbai by October 2017. “Then we will consolidate before we venture into more tier III towns,” he added.
The decision to tap the under-penetrated tier III towns came after a market study by the company revealed the dearth of toy stores in these regions that stock branded toys. “People from these regions aspire to buy branded toys and are willing to spend. But there are not enough stores that sell branded toys,” Jeswant said.
To cater to this demand the company shortlisted 15 towns in five regions – Chennai, Bengaluru, New Delhi, Kolkata and Mumbai to sell its toys. “We will focus on toys in the range of ₹100 to ₹600 for this market,”
Jeswant said while the company has been growing at CAGR of 21 per cent, the growth slowed down in 2017. “We grew about 12 per cent this year,” he added.
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