Toys And Games in India
Euromonitor International's Toys And Games in India report offers a comprehensive guide to the size and shape of the traditional toys and games and the video games market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market- be they new product developments, distribution or pricing issues. Forecasts illustrate how the market is set to change.
Tables: 33 | Publication date: Oct 2006
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Executive summary
Rising incomes drive toy sales
A rapidly growing economy, growing consumer confidence and greater stability of relations with Pakistan have all contributed to the buoyancy of Indian consumer spending. Consumer confidence peaked in 2005, when India's stock market was aiming for the skies, registering a 20% growth in a single month during October- November 2005. The markets have clearly cooled off since then, but the overall spirit of optimism continues to pervade the country, which has led to significant growth in many consumer goods sectors and a continued growth trajectory for the toys and games market.
Branded players fighting back
The long-standing bane of the Indian toys market was its domination by an informal sector of unregistered and unregulated manufacturers. Since the turn of the last century however the organised, branded players have increased their market share and the market is currently evenly divided between the two camps. Almost all the key players are now lobbying the federal government to provide legislation to govern the quality and safety of goods, which would restrict the activity of the unregistered manufacturers, who flout all the standards of quality toy-making observed by the international players in relation to materials and processes. The government's recent decision to impose a steep excise duty might, however, create renewed difficulties for the registered manufacturers.
Urban middle class spending more on toy purchases
One of main trends observed during the review period was the growing awareness among high-income households of the benefits of toys for children. Toys have traditionally been perceived in India merely as a means of pacifying children, with little recognition of the benefits they provide in terms of educational and general development. Recent campaigns by the leading toy manufacturers in the country, including Mattel and Funskool India, have led consumers to rethink this attitude, which has benefited the infant and pre-school sub-sectors in particular. Parents with high disposable incomes have spent more on toys that encourage the all-round development of their children's minds and bodies, in order to give them a head start. This has led to increased sales of toys that develop faculties such as hand-to-eye coordination in infants and foster the creativity of pre-school and pre-teenage groups.
Manufacturers keen to build an eco-system with key stakeholders
A key feature of all developed markets is the presence of an efficient eco-system for each product category. The first signs of the maturing of Indian toy industry were apparent from the efforts of market leaders such as Mattel and Funskool, which have entered into long-term relationships with the leading television channels that broadcast programmes targeted at children, such as Cartoon Network, Hungama, Animax, AXN and Nickelodeon. By developing toys incorporating the popular characters/serials that are broadcast on these channels, toy manufacturers benefit from children's greater ability to relate to these characters, while the growing popularity of the toys increases these channels' ratings.
Video games yet to take off on a large scale
The video games market in India has been growing steadily in recent years, which has prompted many experts to be bullish about this industry's future prospects in the longer term, but the aggregate numbers indicate that gaming is yet to catch on with the masses and remains a niche market, with most gamers concentrated in urban areas. PC games still account for the greater part of the business in economic terms, and console games have not yet become established on a large scale. The industry is eagerly awaiting the launch of the PlayStation 3, which is expected to attract quite a few fence sitters into the gaming fraternity.
Table of contents
TOYS AND GAMES IN INDIA : MARKET INSIGHT
EXECUTIVE SUMMARY
Rising incomes drive toy sales
Branded players fighting back
Urban middle class spending more on toy purchases
Manufacturers keen to build an eco-system with key stakeholders
Video games yet to take off on a large scale
KEY TRENDS AND DEVELOPMENTS
India shining and buoyed by its recent success
Toys slowly emerging as "educational tools" rather than mere pacifiers
Children emerging as powerful decision-makers for purchases
Greater personal computer (PC) penetration drives sales of video games
Internet shopping on the rise
MARKET DATA
Table 1 Retail Sales of Toys and Games by Sector: Value 2001-2006
Table 2 Retail Sales of Toys and Games by Sector: % Value Growth 2001-2006
Table 3 Retail Sales of Toys and Games by Distribution Format: % Analysis 2001-2006
Table 4 Toys and Games Company Shares by Value 2002-2005
Table 5 Forecast Retail Sales of Toys and Games by Sector: Value 2006-2011
Table 6 Forecast Retail Sales of Toys and Games by Sector: % Value Growth 2006-2011
DEFINITIONS
Toys and games
LOCAL COMPANY PROFILES - INDIA
FUNSKOOL INDIA LTD - TOYS AND GAMES - INDIA
STRATEGIC DIRECTION
KEY FACTS
Summary 1 Funskool India Ltd: Key Facts
Summary 2 Funskool India Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 3 Funskool India Ltd: Competitive Position 2005
HANUNG TOYS & TEXTILES LTD - TOYS AND GAMES - INDIA
STRATEGIC DIRECTION
KEY FACTS
Summary 4 Hanung Toys and Textiles Ltd: Key Facts
Summary 5 Hanung Toys and Textiles Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 6 Hanung Toys and Textiles Ltd: Production Statistics 2005
COMPETITIVE POSITIONING
Summary 7 Hanung Toys and Textiles Ltd: Competitive Position 2005
MAHINDRA INTERTRADE LTD - TOYS AND GAMES - INDIA
STRATEGIC DIRECTION
KEY FACTS
Summary 8 Mahindra Intertrade Ltd: Key Facts
Summary 9 Mahindra Intertrade Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 10 Mahindra Intertrade Ltd: Competitive Position 2005
MATTEL TOYS (INDIA) PVT LTD - TOYS AND GAMES - INDIA
STRATEGIC DIRECTION
KEY FACTS
Summary 11 Mattel Toys (India) Pvt Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 12 Mattel Toys (India) Pvt Ltd: Competitive Position 2005
MILESTONE INTERACTIVE SOFTWARE LTD - TOYS AND GAMES - INDIA
STRATEGIC DIRECTION
KEY FACTS
Summary 13 Milestone Interactive Software Ltd: Key Facts
Summary 14 Milestone Interactive Software Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 15 Milestone Interactive Software Ltd: Competitive Position 2005
TRADITIONAL TOYS AND GAMES IN INDIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 7 Retail Sales of Traditional Toys and Games by Subsector: Value 2001-2006
Table 8 Retail Sales of Traditional Toys and Games by Subsector: % Value Growth 2001-2006
Table 9 Retail Sales of Traditional Toys and Games by Distribution Format: % Analysis 2001-2006
Table 10 Traditional Toys and Games Company Shares by Value 2002-2005
Table 11 Forecast Retail Sales of Traditional Toys and Games by Subsector: Value 2006-2011
Table 12 Forecast Retail Sales of Traditional Toys and Games by Subsector: % Value Growth 2006-2011
VIDEO GAMES IN INDIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 13 Retail Sales of Video Games by Subsector: Value 2001-2006
Table 14 Retail Sales of Video Games by Subsector: % Value Growth 2001-2006
Table 15 Retail Sales of Video Games by Distribution Format: % Analysis 2001-2006
Table 16 Video Games Company Shares by Value 2002-2005
Table 17 Forecast Retail Sales of Video Games by Subsector: Value 2006-2011
Table 18 Forecast Retail Sales of Video Games by Subsector: % Value Growth 2006-2011