Ace Turtle, the exclusive licensee of the American toy retail chain Toys“R”Us, is utilising the Bureau of Indian Standards (BIS) to overhaul its business strategy with a stronger focus on local manufacturing in India. The͏͏ company͏͏ aims͏͏ to͏͏ start͏͏ offering͏͏ locally͏͏ produced͏͏ toys͏͏ in͏͏ retail͏͏ by͏͏ mid-2025.
Navigating͏͏ Industry͏͏ Regulations:
The͏͏ introduction͏͏ of͏͏ BIS͏͏ in͏͏ the͏͏ toy͏͏ industry͏͏ has͏͏ posed͏͏ challenges͏͏ for͏͏ sector͏͏ players,͏͏ particularly͏͏ concerning͏͏ supply,͏͏ as͏͏ noted͏͏ by͏͏ Nitin͏͏ Chhabra,͏͏ Founder͏͏ and͏͏ CEO͏͏ of͏͏ Ace͏͏ Turtle,͏͏ making͏͏ it͏͏ more͏͏ difficult͏͏ to͏͏ import͏͏ toys͏͏ from͏͏ China.͏͏ The͏͏ government͏͏ previously͏͏ raised͏͏ the͏͏ basic͏͏ customs͏͏ duty͏͏ on͏͏ toys͏͏ from͏͏ 20͏͏ per͏͏ cent͏͏ to͏͏ 60͏͏ per͏͏ cent͏͏ to͏͏ protect͏͏ domestic͏͏ manufacturers,͏͏ and͏͏ this͏͏ rate͏͏ was͏͏ further͏͏ increased͏͏ to͏͏ 70͏͏ per͏͏ cent͏͏ in͏͏ March͏͏ 2023.
However,͏͏ Chhabra͏͏ highlighted͏͏ that͏͏ these͏͏ regulations͏͏ have͏͏ opened͏͏ up͏͏ opportunities͏͏ for͏͏ toy͏͏ companies.͏͏ “The͏͏ BIS͏͏ standard͏͏ regulation͏͏ has͏͏ enabled͏͏ us͏͏ by͏͏ eliminating͏͏ cheap͏͏ imports͏͏ and͏͏ significantly͏͏ reducing͏͏ the͏͏ grey͏͏ market.͏͏ Consequently,͏͏ we͏͏ now͏͏ have͏͏ access͏͏ to͏͏ higher-quality͏͏ products.”
Continue͏͏ Exploring:͏͏ Ace͏͏ Turtle͏͏ expands͏͏ Toys“R”Us footprint͏͏ with͏͏ new͏͏ store͏͏ in͏͏ Bengaluru
Additionally,͏͏ this͏͏ initiative͏͏ promotes͏͏ locally͏͏ manufactured͏͏ products.͏͏ “We͏͏ plan͏͏ to͏͏ establish͏͏ our͏͏ local͏͏ manufacturing͏͏ capabilities͏͏ by͏͏ partnering͏͏ with͏͏ contract͏͏ manufacturers.͏͏ Currently,͏͏ we͏͏ are͏͏ assessing͏͏ factories͏͏ and͏͏ discussing͏͏ the͏͏ next͏͏ steps.͏͏ Our͏͏ aim͏͏ is͏͏ to͏͏ finalise͏͏ these͏͏ plans͏͏ by͏͏ the͏͏ end͏͏ of͏͏ this͏͏ year,͏͏ with͏͏ production͏͏ expected͏͏ to͏͏ start͏͏ 3͏͏ to͏͏ 4͏͏ months͏͏ later,”͏͏ Chhabra͏͏ explained.
Additionally,͏͏ local͏͏ manufacturing͏͏ plays͏͏ a͏͏ crucial͏͏ role͏͏ in͏͏ optimising͏͏ pricing͏͏ strategies,͏͏ Chhabra͏͏ explained.͏͏ “Localising͏͏ production͏͏ allows͏͏ us͏͏ to͏͏ considerably͏͏ cut͏͏ import͏͏ costs,͏͏ enabling͏͏ us͏͏ to͏͏ offer͏͏ more͏͏ competitive͏͏ prices͏͏ to͏͏ our͏͏ customers͏͏ and͏͏ enhance͏͏ access͏͏ to͏͏ high-quality͏͏ Toys“R”͏͏ Us͏͏ products͏͏ throughout͏͏ the͏͏ country,”͏͏ he͏͏ stated.
Ambitious͏͏ Retail͏͏ Expansion:
The͏͏ company͏͏ operates͏͏ five͏͏ retail͏͏ stores͏͏ and͏͏ plans͏͏ to͏͏ add͏͏ seven͏͏ more͏͏ in͏͏ the͏͏ next͏͏ six͏͏ months,͏͏ with͏͏ a͏͏ goal͏͏ of͏͏ opening͏͏ a͏͏ new͏͏ store͏͏ every͏͏ five͏͏ to͏͏ six͏͏ weeks.͏͏ Chhabra͏͏ also͏͏ mentioned͏͏ a͏͏ long-term͏͏ vision͏͏ of͏͏ expanding͏͏ to͏͏ 50͏͏ stores͏͏ within͏͏ the͏͏ next͏͏ three͏͏ years.͏͏ The͏͏ brand͏͏ saw͏͏ a͏͏ remarkable͏͏ 245͏͏ per͏͏ cent͏͏ growth͏͏ in͏͏ topline͏͏ revenue͏͏ in͏͏ 2024͏͏ compared͏͏ to͏͏ 2023.
