What’s your assessment on the kids’ product market in India?
There is a growing demand for apparels and toys for both infants and kids in India. According to a leading research company, Novonous, the child care market is poised to grow at a CAGR of 13.66 percent over the coming years, owing to strong demand for baby and children apparel, footwear, toys and baby cosmetics. The annual spend on toys in India compared to the rest of the world is as low as $4-5 per child and it is set to grow substantially to reach close to $14-15 dollar per child by 2025. The advent of internet retailing has also allowed infants and kids’ products to reach out to a larger audience and Indian consumers have welcomed this move as well.
With the presence of many national and international kids brand in India, how will you differentiate yourself from the competition?
TRU’s global positioning as a category leader together with its brand promise is well-suited to bridge the need gaps in the Indian market. We do not think we need to particularly focus on differentiating ourselves from any other brand since we have a unique attractive positioning, both on the product and service fronts.
As the brand is looking to tap the mass market, what would be your pricing strategy?
Studies are being conducted to finalize our price positioning, however, it’s going to be positioned in such a way there is ‘something for everyone’ and appealing across income segments also implies straddling a wide range of price points.
Keeping in mind the growing online boom, what’s your e-commerce plan?
On the global level, Toys ‘R’ Us racks up nearly 10 percent of its annual sales from the internet. We believe there is a similar potential for internet retail in India, and we plan to have a dedicated e-commerce site for the brand in the near future.
Please share your future plans.
We have signed a master franchise agreement for India and Sri Lanka with Toys ‘R’ Us and we plan to invest $85 million to open 65 outlets in the next 10 years. If the current market scenario continues, we hope to reach our store target in the next eight years.