In its quest for rapid expansion in India, global toy retailer Toys ‘R’ Us is gearing up to initiate manufacturing in the country by mid-next year, according to a report by The Economic Times (ET) on Monday. This information was shared by Stanley Silverstein, the Chief Commercial Officer of WHP Global, the parent company.
According to reports, the company anticipates that India will rank among its top five markets within the next four to five years. Presently, the toy manufacturer operates two stores in the country and has ambitious plans to open an additional 75 stores over the next three years.
Continue Exploring: Toys ‘R’ Us bets big on Indian market, eyes top five position within 4-5 years
Toys ‘R’ Us initially entered the Indian market with a different licensee partner shortly before the onset of the COVID-19 pandemic. At that time, the company successfully launched 10-12 stores, but unfortunately, had to close them down due to lockdown measures. It made a re-entry into the market in March of this year and has since accelerated its manufacturing efforts in India.
In accordance with the prevailing regulations of the Bureau of Indian Standards (BIS), both electric and non-electric toys are required to carry an ISI mark, and the sale of any toy lacking this mark is prohibited in the Indian market. This regulatory requirement has prompted the company to explore manufacturing in India. Prior to the implementation of these norms, a significant portion of the company’s toys were imported from China.
Six years ago, the toy maker filed for bankruptcy, and subsequently, WHP Global acquired a majority stake in the brand. As of now, the company’s primary markets, ranking among the top five, include the USA, Japan, China, Italy, and Dubai.
In India, the toy retailer competes with Hamleys, which falls under the umbrella of Reliance Industries. Operating with an omnichannel strategy, the US-based retailer intends to establish smaller stores in India compared to its outlets in other regions.
The majority of the stores the company intends to open in India will span between 8,000 and 10,000 square feet. Recently, it inaugurated a store in Mumbai, covering an area of 12,000 square feet.