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: 34 | Publication date: Nov 2008
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- 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
Indian middle class continues to prosper
The Indian middle class is prospering, with around 70 million households earning anywhere between Rs 80,000 and Rs 180,000 per annum. These comprise 34% of the middle class of slightly over 200 million. India’s urban population is the second largest in the world, greater than the combined urban populations of all countries except China, the US and Russia. Overall, consumers’ spirits are high, which has led to significant growth in many sectors of consumer goods and continued growth for the toys and games market. Rising prices, the costs of children’s education and medical care, and the decline in share prices are nevertheless all key concerns. The toys and games market in India stood at Rs 29.8 billion in 2007 and were expected to reach Rs 35.5 billion in 2008.
Children are main focus of Indian families
Children are the main focus of Indian families, and their aspirations in terms of education and career choices are running very high. The average family size in India is declining: as of now it is almost 4.3 whereas in earlier years it was more than 5. With the reduction in their average size and the increase in their incomes, Indian families have more money to spend. Their main focus is their children, and they try their best to fulfil their aspirations. Children are getting more attention and participating more in the decision-making processes.
Imports from China a major threat to domestic players
As in many other industries, imports from China are a major issue for domestic toy manufacturers, and this has led to chaotic market conditions. Chinese and Taiwanese manufacturers have been innovative and specialise in producing novelty items, which can last for up to ten months. They are of lower quality and hence less expensive, which quickly attracts Indian buyers’ attention. According to official government sources, China exported around US$8 billion worth of toys, while Indian imports in 2008 were expected to be around Rs 1.5 billion.
Increasing awareness of quality issues among customers
The US toy-maker Mattel’s recall of thousands of its Chinese-made toys in 2007 had a positive impact on the Indian market, which includes many manufacturers in the unregistered, unregulated sector. Very little is known about the manufacturing processes, or even the manufacturers, as these details are not available to the purchasers. Leading toy companies now believe that the increased awareness of quality concerns will prompt buyers to choose better-quality, branded toys. Most toy manufacturers in the unregistered, unregulated sector do not follow these norms much of the output of the unbranded segment is not marked, according to industry experts.
The toy sectors is estimated to be growing at 18–20%, with the registered and regulated sector growing at 22–25%, compared with a lower rate of growth in the unregistered, unregulated sector.
Change in people perception
The gaming industry has been very slow to mature in India, although some things have changed during the review period and hopefully others will do so in future. In September 2006, Microsoft launched its Xbox 360 in India. In April 2007, Sony launched its PlayStation 3, which included the latest blu-ray optical disk drive. The third major console, Nintendo’s Wii, has not been officially launched in India, but it is available through various channels at a substantial discount to the Xbox and the PlayStation 3. The main drivers of the gaming industry’s growth in India will be seeding initiatives by the players, marketing and the pricing of games. While consoles were left to sell themselves in the past, their manufacturers are now taking a proactive approach to selling their products. People’s perceptions of gaming have also changed: “It has gone from being a product for a cult group to a lifestyle product.” As a result, the video games market in India stood at Rs 4.8 billion in 2007 and was expected to reach Rs 6.2 billion by 2008.
Table of contents
TOYS AND GAMES IN INDIA : MARKET INSIGHT
EXECUTIVE SUMMARY
Indian middle class continues to prosper
Children are main focus of Indian families
Imports from China a major threat to domestic players
Increasing awareness of quality issues among customers
Change in people perception
KEY TRENDS AND DEVELOPMENTS
The growth of the economy and the middle class
Increasing role of children in decision-making
Emergence of toys as educational tools
Increasing penetration of PCs
Rise in Internet shopping
MARKET DATA
Table 1 Sales of Toys and Games by Sector: Value 2003-2008
Table 2 Sales of Toys and Games by Sector: % Value Growth 2003-2008
Table 3 Sales of Toys and Games by Distribution Format: % Analysis 2003-2008
Table 4 Toys and Games Company Shares by Value 2004-2007
Table 5 Forecast Sales of Toys and Games by Sector: Value 2008-2013
Table 6 Forecast Sales of Toys and Games by Sector: % Value Growth 2008-2013
DEFINITIONS
Summary 1 Research Sources
LOCAL COMPANY PROFILES - INDIA
CREATIVE EDUCATIONAL AIDS PVT LTD - TOYS AND GAMES - INDIA
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Creative Educational Aids Pvt Ltd: Key Facts
Summary 3 Creative Educational Aids Pvt Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 4 Creative Educational Aids Pvt Ltd: Competitive Position 2007
FUNSKOOL INDIA LTD - TOYS AND GAMES - INDIA
STRATEGIC DIRECTION
KEY FACTS
Summary 5 Funskool India Ltd: Key Facts
Summary 6 Funskool India Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 7 Funskool India Ltd: Competitive Position 2007
HANUNG TOYS & TEXTILES LTD - TOYS AND GAMES - INDIA
STRATEGIC DIRECTION
KEY FACTS
Summary 8 Hanung Toys and Textiles Ltd: Key Facts
Summary 9 Hanung Toys and Textiles Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 10 Hanung Toys and Textiles Ltd: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 11 Hanung Toys and Textiles Ltd: Competitive Position 2007
MIN TOYS PVT LTD - TOYS AND GAMES - INDIA
STRATEGIC DIRECTION
KEY FACTS
Summary 12 Min Toys Pvt Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 13 Min Toys Pvt Ltd: Competitive Position 2007
SONY INDIA PVT LTD - TOYS AND GAMES - INDIA
STRATEGIC DIRECTION
KEY FACTS
Summary 14 Sony India Pvt Ltd: Key Facts
Summary 15 Sony India Pvt Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 16 Sony India Ltd: Competitive Position 2008
TRADITIONAL TOYS AND GAMES IN INDIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 7 Sales of Traditional Toys and Games by Subsector: Value 2003-2008
Table 8 Sales of Traditional Toys and Games by Subsector: % Value Growth 2003-2008
Table 9 Sales of Traditional Toys and Games by Distribution Format: % Analysis 2003-2008
Table 10 Traditional Toys and Games Company Shares by Value 2004-2007
Table 11 Forecast Sales of Traditional Toys and Games by Subsector: Value 2008-2013
Table 12 Forecast Sales of Traditional Toys and Games by Subsector: % Value Growth 2008-2013
VIDEO GAMES IN INDIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 13 Sales of Video Games by Subsector: Value 2003-2008
Table 14 Sales of Video Games by Subsector: % Value Growth 2003-2008
Table 15 Sales of Video Games by Distribution Format: % Analysis 2003-2008
Table 16 Video Games Company Shares by Value 2004-2007
Table 17 Forecast Sales of Video Games by Subsector: Value 2008-2013
Table 18 Forecast Sales of Video Games by Subsector: % Value Growth 2008-2013