Comments
Ace Turtle, the exclusive licensee of Toys“R”Us, the American toy retail chain, is leveraging Bureau of Indian Standards (BIS) to revamp its business strategy with an enhanced focus on local manufacturing in India. The company plans to begin selling locally produced toys in retail by mid-2025.
The introduction of BIS in the toy industry has presented challenges for players in the sector, particularly regarding supply, noted Nitin Chhabra, Founder, CEO, Ace Turtle, making it cumbersome to import toys from China. Previously, the government raised the basic customs duty on toys to protect domestic manufacturers from 20 per cent to 60 per cent. This rate was further revised and increased to 70 per cent in March 2023.
However, Chhabra pointed out that these regulations have provided opportunities for toy companies. “The BIS standard regulation has acted as an enabler by eliminating cheap imports and reducing the grey market to almost negligible levels. As a result, we can now access better-quality products.”
Additionally, this initiative fosters locally manufactured products, he noted. “We are planning to begin our local manufacturing capacities by partnering with contract manufacturers. Currently, we are evaluating factories and discussing the next steps. Our goal is to finalise these plans by the end of this year, with production expected to begin 3 to 4 months thereafter,” Chhabra explained.
Furthermore, local manufacturing helps optimise pricing strategies, Chhabra emphasised. “By localising production, we can significantly reduce import costs, offer more competitive prices to our customers, and improve access to high-quality Toys“R” Us products across the country,” he added.
The company currently operates five retail stores and plans to add seven more within the next six months, aiming to open a new store every five to six weeks. Chhabra also outlined a long-term goal of reaching 50 stores in the next 3 years. The brand recorded a 245 per cent increase in topline revenue in 2024 compared to 2023.
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.