India-China standoff may be one jolt too many for ailing Bengaluru toy industry

Three events in quick succession this year have created an unprecedented crisis for the industry.
With 70 percent of the much sought after modern toys imported from China, shops are surviving on whatever stocks have been imported already. (Photo | Express)
With 70 percent of the much sought after modern toys imported from China, shops are surviving on whatever stocks have been imported already. (Photo | Express)

BENGALURU: The toy industry in Bengaluru is gasping for breath and is set to suffer irreparable damage unless there is a dramatic turnaround in fortunes soon. With 70 percent of the much sought after modern toys imported from China, shops are surviving on whatever stocks have been imported already. There appears to be no light at the end of the tunnel as of now.

Three events in quick succession this year have created an unprecedented crisis for the industry. First was the supply disruption caused by the outbreak of COVID-19 in China. Then came the increase of import duty by the Centre by 200% in February from 20% to 60% and the need to go in for double quality certification for imports to be implemented from September this year.

The latest jolt for the industry is the strained relations between the two countries due to the military standoff and the subsequent campaign across the country to boycott Chinese brands.

There are an estimated 700 to 800 small toy shops and 200 to 300 large ones in Bengaluru, according to the Karnataka Toys Association. Its president Mangalchand S Jain, a big name in the toy business in the country, said the trade has never encountered this kind of situation in the past.

“I own two toy shops in the city and have been running my business for the last 40 years. This is the biggest crisis we are facing,” he said. “There is not a single electronic toy manufacturer in the country. We can use this crisis to set up our own modern manufacturing units. But it could take up to two years for it to begin operations as the mould of the toy needs to be cast first and then there are the packaging and marketing aspects,” he added.

The proprietor of Monopoly Marketing shop in Commercial Street and secretary of the association, Nilesh Gurnani, said that ten percent of toys bought from other countries like Thailand, Vietnam and Denmark depended on China for their electronic components.

“20 percent toys produced in India are purchased by malls or departmental stores who sell it along with other products. They can replace it with other available products. Only exclusive toy shops that deal with imported branded toys will have to switch to other businesses or shut down,” he felt. Online businesses had  heavily impacted the industry in the last few years, he added.

Federation of Karnataka Chamber of Commerce and Industry president C R Janardhana said the positive aspect of this crisis could be the revival of the Channapatna toy industry at a global level.

“The Chief Minister has already called for the toy industry here to be upgraded by incorporating electronic and digital elements into it. They are eco-friendly too. It will take some time but Channapatna could emerge as a global toy supplier,” he said.

Related Stories

No stories found.
The New Indian Express
www.newindianexpress.com