Toys and Games in India

Growth in total toys and games current value sales slows in 2017

Growth in total toys and games current value sales in India in 2017 was slower than in 2016, mainly due to the impact of the new Goods and Services Tax (GST) and price increases. Current value growth was also restricted by the limited capacity of small domestic manufacturers to invest in equipment, marketing activities and innovation.

Tax and regulatory changes affect toys and games

The implementation of the Goods and Services Tax (GST) in India during the second half of 2017 affected toys and games supply chains. Prior to implementation, distributors and wholesalers exhausted stocks subject to the previous VAT regime, and did not replenish them until the GST came into effect.

Funskool leads traditional toys and games, Sony leads video games

Funskool (India) Ltd and Mattel Toys (India) Pvt Ltd remained the top two players in traditional toys and games in 2017, while Sony India Pvt Ltd led video games with its PlayStation range. During the year, companies such as Funskool and Simba Toys India Ltd sought to strengthen their competitiveness by opening more physical stores and listing their products on leading e-commerce websites like amazon.

Internet retailing gains ground in toys and games distribution

Internet retailing continued to make value share gains at the expense of other channels in the Indian toys and games market in 2017. Gains for internet retailing were supported by the channel’s strong performance in video games and the activities of major online retailers.

Outlook for toys and games remains bright despite 2018 duty hike

Toys and games in India is expected to see total value sales at constant 2017 prices grow at a double-digit CAGR over the forecast period. The market’s performance will be bolstered by rising disposable incomes, increasing consumer awareness of different brands, new launches and the growing willingness of many parents to spend money on toys and games for their children.

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