CHENNAI: With children stuck at home due to the pandemic and sentiments against Chinese products running high, toy manufacturer Funskool aims to cash in on the opportunity and expand its market share—both domestically and abroad.
The Chennai-headquartered toy maker is expecting a growth of 15-20 per cent in its exports this financial year and is hopeful of a sound growth in the domestic market too as it expands its product portfolio and ramps up production. The toymaker currently has two manufacturing units in Tamil Nadu and one in Goa.
To drive sales, the company has launched a series of educational toys and board games recently after a deep look at present customer needs and consumption patterns, CEO of Funskool India R Jeswant told TNIE.
New product launches are a key aspect of keeping brands relevant and Funskool says it has a strong line-up.
“The toy industry thrives on novelty. We have to continuously offer new products to our customers at affordable rates to keep them connected. In such changing times, when schools are closed and home learning is being stressed, we are focusing on developing innovative educational toys like abacus, puzzles, and word games, and demand is overwhelming,” Jeswant said.
The toy industry in India is largely unorganised, which has helped in driving a massive influx of Chinese-made toys. But, if the Chinese toys are prohibited in the country, then Funskool can easily fill in the vacuum, claimed Jeswant.
“Our three manufacturing units are well-equipped to cater to the rising demand and we can ramp up our production anytime. Besides, our dependency on Chinese markets for moulding and tooling materials for making toys is very limited,” he added.
The company had lost its peak business season this year—the summer vacation—due to the lockdown. However, demand has begun recovering now, Jeswant says.
“We have export orders lined up for next three to four months. Our exports are growing much faster than domestic sales. Interestingly, we are receiving good demand from places like Africa, Mongolia and Maldives,” he said.
In the domestic market, the company will also be focusing more on sales through e-commerce websites.
“We see a bright future for us in the long run since the Indian toy market has a huge potential for growth. Currently, the Indian toy market is just 0.5 per cent of the global toy market, but in the next ten years it will grow significantly. We are leveraging our infrastructure and consistently focusing on our research to tap the market,” Jeswant noted.
As far as the product pipeline goes, Funskool is all set to launch a wooden range of toys since an increasing number of parents are opting to buy eco-friendly products recently. With kids spending more time watching online cartoons, the company is also planning to launch toys based on cartoon characters.