Renting benefits for toy lovers

Parents spend huge amount of money on toys but kids soon get bored with them and desire for new ones. Thus this investment becomes a waste. As a result the concept of renting toys is emerging fast. Read on to explore the opportunity. 

 

Toys are an indispensible part of almost everyone’s childhood. However with toys becoming more and more expensive it is becoming difficult for parents to buy new toys and games for their little ones. Moreover kids get bored of toys very quickly and after few days toys become a waste and occupy lot of space. To avoid this and make toys more affordable the unique but functional concept of toy rentals has become popular in India. The concept is already quite popular in countries like New Zealand, Australia, and America where even the government funds such concepts. However in India toy libraries was an unheard concept till recently. With more of awareness, a toy library is an upcoming opportunity with many entrepreneurs already cashing in on this new concept. Read on to be more aware. 

Need for toy renting

Toys are still considered to be a luxury in India. Although parents spend huge amount of money on toys yet it is not a healthy investment.   Moreover kids get bored with the toys very soon making it a storing item. This brought the idea for buying toys on rent. The concept of rental toys work wonders for kids as well as parents. Let us have a look at the advantages of this venture:

• New toys without much expense: Kids usually get bored with toys, which are quite expensive. They store these in their playroom as useless items. However getting toys on rent saves money for parents as well as gives variety to the kid.
• Toys as learning experience: There is a continuous range of new toys available in the market. These not only provide entertainment but also knowledge to kids as well as their parents. Instead of buying them, toys can be taken on rent.
• Saves space: Presently everyone mostly have small compact houses without much storing space. Buying toys and storing them takes a lot of space. Therefore toys on rent save money as well as space.
• Play, learn and pass it on: The best thing about toys on rent is that they can be passed on to the next child when the previous owner gets tired playing with it. This way they do not get wasted.

Rental toy franchising:

Concept of renting toys is quite recent in the large bandwagon of franchising. However it is becoming more organised due to the various brands in the sector which have taken the franchise route for rapid and successful expansion. As informed by Toys-on-rent that Franchising is essential for giving the next big step to their business. Moreover seeing the success of this concept in other nations, they can be assured that it has a bright future in India also.

New and emerging players:

As mentioned the toy rental concept is quite recent, therefore there are few players who are benefitting from this concept till now. Few of them are:

• Toys-on-rent: The brand has recently opted for the franchise route. It needs a total investment of Rs 2,30,000 which would include the sign up fees and franchise set-up cost as well. Toys-on-rent is presently planning to open franchise outlets in Hyderabad, and Mumbai etc. 

• Planet Toyz: It is a fun library from where kids can get books, toys, games, CD’s etc on rent. The first outlet was opened in north Delhi. It needs an investment ranging from Rs 1.5 to 1.75 lakh with an area approximately 200 sq. ft. 

• Rent Me Toy: The toy library, headquarters at Mohali has recently opened. The brand has taken the franchise route for rapid expansion pan India. It needs an investment of Rs. two to five lakh.  

Play way for franchisees:

A toy rental franchise can be benefiting for aspiring entrepreneurs. There are not many requirements for taking toy rental franchise. Any aspirant with total commitment to quality and service can opt for this. Moreover toy rental concept is well suited for women who are home makers. They understand kids and love dealing with them. Few of its other benefits are mentioned below:

• Low cost but attractive returns: Taking a toy rental franchise is not very expensive. It is a low cost business opportunity which can fetch lucrative returns to franchisees.

• Easy to manage: Toy rental business is easy to run. As informed by Kapure: “The business can be managed at home with just a 6'X3'X3' storage space.”

• Staggered investments: The franchisees can keep expanding the business with no additional fees within their territory. Moreover adding more and more toys can give this business an easy leap.

Few hurdles on the way

Along with numerous benefits, this concept faces a few challenges as well. The understanding of rental toys among parents and kids is the greatest challenge. Moreover entrepreneurs have to keep updating newer toys, games and books in the outlet. This forms the major issue as one needs to add on toys keeping children’s expectation in mind.

It can be concluded that a toy rental franchise is low cost with high benefits and easy to manage as well. Therefore aspirants who love toys and kids can surely opt for this venture for a happy and fulfilling business growth.

Wedding bells are ringing again!

The Indian wedding season is round the corner and retailers are all set to bank on this opportunity once again. The shopping carnival has just begun for Indian customers.

Tuning in to this fervor are the retailers who look up to this time of the year as a big opportunity to get their cash registers ringing again. And this trend gets bigger every year with the market maturing to even a greater extent.

Retailers gear up for the D-Day 

The Indian wedding season generally runs from late August to September. The advent of the season means more business to every retailer. Every retailer awaits this wedding and the festive season to push in more and more business.

Like any other occasion, Gitanjali Jewels has come up with a number of exciting promotional offers to celebrate the forthcoming wedding season. Tamanna, one of the savings scheme started by the jewellery brand is every woman’s aspiration of turning her dream of owning her favorite piece of diamond jewellery into reality. Under this savings scheme, a consumer can manage his/her savings more efficiently and plan ahead to make that special purchase for a memorable occasion like that of a wedding.

The Bombay Store, on its part has introduced a range of exquisite evening bags in a wide selection of colours and styles. The Bombay Store has also introduced larger tote bags for the woman who needs more room to hold make up, jewellery and clothes for the wedding.  These tote bags dawn classy prints and add to the chic quotient. Come October and the Indian wedding extravaganza begins with great pomp and grandeur.  The lavish Indian weddings that have replaced the once conventional marriages have become a costlier affair.  Indians no longer keep a tight budget in hand while organising a wedding. It is during this time when people go on a shopping spree, without thinking about the returns.

Bullion sale scales up

More than anyone else, it is the bullion traders who benefit the most during this time. Despite the skyrocketing gold prices, the sale of gold ornaments rises as the wedding season draws closer. After occasions like Akshay Tritya and Dhanteras, wedding ceremonies account for the largest purchase of this shiny precious metal.  

Demand for gold in India increases every year at this time but reports have indicated that the rate at which consumers are buying this year are well above, as predicted by the Bombay Bullion Association. It is said that consumers are not only buying gold jewellery but the demand for investment coins have also gone up.

Finally...

The trend of splurging is nowhere going to stop for Indians. It is said that an Indian spends almost one fifth of his lifetime savings on a wedding ceremony and this means tremendous business opportunity for retailers. As the wedding season begins to wrap up by the end of December, the retailers begin stocking their stuff for the next year and come up with even more innovative ideas to lure more customers to their end.  

Toys Market

Toy market on a growth trajectory

The industry is growing at 30 per cent every year; more than 55 per cent of the Rs 6,000-crore Indian toy industry is still accounted for by imports, as projected by Toy Association of India, TAI.

Drivers

The burgeoning growth in organised retailing has helped domestic and international toys and games manufactures to target tier two and tier three cities and expand their market base deeper into India. The health hazards that cheap Chinese toys can pose has also made people aware and grow even more conscious. Both these factors helped domestic organised toy suppliers to grow in prominence in the Indian market through their innovative and quality toys and games. Also, the perception towards toys as a necessity for all round development of child will help in further driving this market. Growth in preschool, large population of children, increasing awareness of quality issues are other factors that is leading to the growth.

In 2010, the toys and games market was valued at INR 40 bn. The market is likely to grow with increased per capita income of Indians and the increased availability of world class toys. Health concerns associated with cheap materials are likely to reduce the popularity of cheaper imports and this is likely to help local toys manufacturers further.

Toy makers go green

Toy manufacturers in India have embarked on a green drive by initiating a recycling process and the use of non-toxic raw materials. In line with this green commitment TAI has recently launched its ‘We Care’ campaign. The campaign is designed to spread awareness among small toy manufacturers about the health hazards associated with using toxic materials in toys and also encouraging them to initiate recycling process.

A study by Delhi-based Centre for Science and Environment showed that 45 per cent of the toys made in India contain dangerous phthalates, a group of chemicals. Regular exposure to phthalates can cause asthma, skeletal defects, damage the male reproductive system and impair the lungs in children. Raw materials like high-density polyethylene (HDPE), styrene acrylonitrile (SAN) and acrylonitrile butadiene styrene (ABS) can be used instead which are less harmful.

The department of industrial policy and promotion (DIPP) is also coming up with guidelines for the industry in a month or two. “We are trying to create awareness among small manufacturers of this unorganised sector now. We have already urged all our 600-odd members to adopt non-toxic materials only and if possible, to recycle toys too,” said Raj Kumar, president of the Toy Association of India (TAI).

Looking ahead...

Growth in demand from relatively new sectors of toys and games such as video games, infant games and pre-school games is expected to steer the toy market in the years to come. Local manufacturers have to find out new means to tackle the Chinese challenge and build up more innovative products that will help grow this market. To do this, they are to do away with obsolete designs and old technologies.

Retailing

Retailing for Infants

Kids retailing in India has seen enormous growth, not just in urban areas but in rural areas also

The Indian retail industry is undergoing major revolutions. Retailing in India is gradually becoming the next boom industry. The consumer buying pattern and behavior are changing steadily. The growth of India's retail sector is not only limited to urban areas but also growing in rural areas. In the next five years, it is expected that, India's retail industry will expand more than 80 percent.

Organised retailing is slowly and steadily making its presence conspicuous in India and increasing its share as opposed to the unorganised retailing. With the coming of organised retail, various retail formats such as departmental stores, hypermarkets, supermarkets, malls, gaming zones, etc, have taken their market share. This segment is expected to touch an annual growth of around 35 percent. Hence, there is definitely considerable opportunity in this sector.

Understanding kids needs & demand

The trend for specialised retail is also growing in India. Today, there are many specialised retail stores taking care of specific needs of men, women, kids & infants exclusively. Kids’ retailing in India has seen enormous growth during the last decade. The scope of kids’ retailing is increasing as the industry expands phenomenally. Now it covers the entire gamut of apparel, sportswear, toys, eyewear, watches, stationery, footwear, perfumes and other accessories.

A close study of the evolution of the kids’ market shows that retailers dealing in juvenile products have an edge over their competitors, which eventually leads to a sustainable competitive advantage. Today, retailers are keener towards understanding the needs of kids than their parents.  Kids now have a wide range of branded merchandise. This allows them to add a wide range of flexibility to kids’ products in this market.

Players in the category

The kids wear retail market caters to kids aged up to 12 years. There is also a specialised market space for infants wear retail market segment that includes sales of garments for children between the ages of 0-2 years. Leading the kids' retail revolution is the apparel business, which accounts for almost 80 percent of revenue, with kids clothing in India following international trends. Some of the leading brands in kids apparel segment includes - Gini and Jony, Zapp!, Cinderella, Lilliput Kidswear, Raymond Apparel and Trent.

The recent entrant is PB Retail Ltd., a company in infant retail promoted by Pawan Agarwal. The company has opened their store in the brand name – My Mart, the first store of the company in the country which has an area size of 2000 sq.ft. My Mart caters to the children aged between newly born to five year olds. My Mart brings all the necessary goods for kids including apparel, footwear, accessories (bath and fashion), stationery, gifts and toys, Kids furniture etc.


Future growth

The kids retail industry is growing at a rate of 35 percent, which is a fairly good indicator of the promising prospect of this segment. As the market is still untapped, there is growth potential for new players to enter this segment. A more focused nature in understanding the changing demands, trends and growing needs of the kids segment and constant effort to better product will help retailer to become category leader.

CO-BRANDING: AN OVERVIEW

Winning through partnership

Through co-branding strategy, the new entrants in retail market have successfully established their brand identity and created new consumer base

In today’s competitive market scenario, where every category has different brands offering product with similar features and price points, it’s become very challenging for a new brand to sustain in market and create a new consumer base. As a brand building alternative, most of the brands launch their new consumer products through co-branding. It is a proven concept where two or more brands merge together to become a single product.

Objective

The co-branding strategy has been used by players in every sector be it automotive or consumer durable or apparel brands or fast food giants. Many leading brands and retailers use this marketing strategy in order to attract new customers, increase the brand awareness, support the customer loyalty etc. The aim of co-branding strategy is to combine two brands in order to attract more customers and to maximize the power and prestige that each brand has to offer. The partnership helps in opening up new markets and marketing opportunities for both brands.

Different forms of co-branding

There are four different forms of co-branding. The first form is ingredient co-branding – an example could be Dell computers with Intel Processors. Next form of co-branding is same-company co-branding – a Titan watch from the house of Tata is an example of the second kind.  Joint venture co-branding is yet another form of dual branding – the case of Godrej and Procter and Gamble is example of this kind. And last is multiple-sponsor form of co-branding, where co-branding of two or more companies work together to form a strategic alliance in technology, promotions, sales, etc. The example would be the case of HCL computers with hardware alliance of HP, processor alliance of Intel and software alliance of Microsoft.

Advantages

Through co-branding both brand and consumers are benefitted. The brand gets preliminary benefit of instant brand recognition in markets where there may not be any consumer awareness (at the launching stage) or a lesser degree of consumer awareness a company desires. Other benefit is the financial advantage provided by the alliance. It results from the sharing space, which lowers operating costs, maximizes marketing dollars through joint promotions and increases marked exposure with one product carrying both brand names.  Consumers´ attitudes toward a particular brand alliance influence their subsequent attitudes towards the individual brands that comprise that alliance. 

Disadvantages

Despite all the advantages of co-branding, there are possibilities that the strategy may have negative effect on the partner brands due to co-branding. The strategy may fail if the two products have different market and are entirely different. If there is difference in visions and missions of the two companies, then also composite branding may fail. If the customers associate any adverse experience with a constituent brand, then it may damage the total brand equity. Once a brand takes position in the market, it becomes difficult to dismantle the co-brand. Also it will become a big challenge for brand to re-establish the brand identity alone.

Future of co-branding in India

As the consumer in today’s modern era are more informative, demanding and conscious about their buying behavior, the need for co-branding in retail will increase in future. Many foreign giants are venturing into Indian retail sector in strategic partnership with Indian companies – the example will include Wal-Mart, Metro, and Tesco etc. With advance technologies in modern retailing, it is now possible to know the exact information about consumer shopping habits, which further will help retailers to improve marketer knowledge and strategies. As additional market sectors become more and more difficult to penetrate for newcomers, co-branding may be preferred as a faster, cheaper and safer growth strategy.

Reliance Brands limited strategies

Reliance gives its premium brands a ‘personal' push

Reliance Brands is banking on personalised service such as ‘outside-shop' purchases and customized services to push sales of its high-end branded apparel. The company, a fully-owned subsidiary of Reliance Industries, is into high-end retailing and has exclusive sales and distribution licences for six international apparel and footwear brands.

Currently, Reliance Brands offers personalised services on two premium brands that include casual wear maker Diesel and apparel maker Zegna. Nearly 10 per cent of the total sales value in Zegna and Diesel stores are through outside-shop sales (home delivery of apparel without the customer visiting the store), company sources said.

They are adding value to the brand through the concept of personalized services. over the next few years, the company was expecting nearly 20 per cent of its revenue through outside-shop sales.

VIP ROOM FACILITY

While outside-the-shop selling remains an option, the company currently has a VIP room facility in its Diesel store in Juhu, Mumbai. The room is booked exclusively for the customer, who will not have to go around the shop. The apparel and the latest designs will be brought to the customer by company-appointed personal managers.

VIP room facilities and home delivery of apparel is available at no extra charge. International brand Louis Vuitton's New Bond Street outlet is known to offer such lounge services for its high-end customers.

MADE TO ORDER

Another of the company's strategies has been the introduction of made-to-fit tailoring. Particularly available in Zegna stores, the concept involves having designer suits tailored to the customer's measurements by Italian designers. This is a premium service available at an extra cost. Made-to-order suits are priced at least 15 per cent higher than a normal Zegna suit.

Reliance Brands has associations with Diesel, Timberland, Zegna, Paul & Shark, Quiksilver and Steve Madden. The company operates through exclusive stores for each brand. It has 20 exclusive stores, of which Paul and Shark and Zegna have four stores each, while Diesel has seven such outlets. Reliance Brands has five Timberland stores and is yet to launch the Quiksilver and Steve Madden brands in India.