Written By: Bandana Gupta

Introduction

There is an increasing demand for indoor toys for children and toys that contribute to their learning process in India. The parents of today are seeking out toys that are entertaining, safe, and can help in developing their child in a better way. This has been coupled by the fact that toy rentals, educational toy stores, and indoor play areas are being sought out in metro cities and Tier II & III cities as well.

This opens up immense opportunities for entrepreneurs who are keen on venturing into a kids' indoor toys franchise in India. Be it in terms of a smaller investment plan or even a retail store franchise, there are options available. With high demand, increased awareness about STEM toys, and encouragement from the government to manufacture locally, the toy business provides tremendous growth opportunities.

Why Franchise Kids' Indoor Toys in India?

The toy market in India is rapidly growing due to rising expenditures by parents on good toys and educational items. Toy for kids is not just for fun now, it helps kids in developing their creative skills, solving problems, and learning skills.

Following are some of the most important factors behind the growth of the business:

•           Increasing disposable income of Indian households

•           Educational and STEM toys demand

•           Focus on child development

•           Government support under Make in India

•           Tier-2 and Tier-3 city demands

•           Better retail options online and offline

Related  Link:Top Educational Franchise Ideas in India

Why Is the Kids Indoor Toys Market Growing?

*Educational Toys Are Preferred by Parents

Parents in modern times opt for toys that will enhance the child’s education along with entertainment. STEM toys, puzzles, building blocks, and other activity games have seen popularity because of better imagination and cognitive skills.

*Rise in Middle Class Expenditure

Due to the rise in the income levels, parents are able to spend money on premium toys, indoor games, and educational products for kids. The trend has resulted in increased demands for branded toy stores in India.

*Support from Government

The Government of India is supporting indigenous toy production with the Make in India initiative and quality norms provided by Bureau of Indian Standards (BIS).

*Expansion beyond Metro Cities

Not only in big cities but also in smaller towns, the demand is rising due to parents’ search for branded toy stores for their kids.

Benefits of Investing in a Kids Indoor Toys Franchise

Investing in a kids' indoor toys franchise in India is an idea. It has a lot of advantages for people who are starting a business for the time and for people who have invested in businesses before.

*Low Investment Options

You do not need to spend a lot of money to start a kids' indoor toys franchise. Many toy library and rental franchises can be started with an amount of money. This makes them perfect for businesses that you can run from home or for stores.

*Steady Customer Demand

Parents always buy toys for their kids. They buy toys for birthdays and festivals, and special occasions. This means that kids' indoor toys franchises always have customers.

*Franchise Support

kids indoor toys franchise companies help you with:

• setting up your store

• getting the toys you need to start

• training your staff

• telling people about your business

• managing the toys you have

*Multiple Revenue Sources

Kids indoor toys franchise owners can earn money in many ways. Apart from selling toys, they can also earn money from:

• renting out toys to people

• membership plans for kids

• educational kits for kids

• party packages for birthdays

• selling toys in bulk to schools and daycare centres

Suggested  Link: Low-Investment Franchise Businesses in India

Various Franchise Models Available in Kids Indoor Toys Business

Depending on your budget and business intentions, there are different kinds of franchise models available.

1. Toy Library Franchise

In case of toy libraries, parents can hire toys on subscription per month rather than buying them. Such businesses involve low investment and can even be operated from the comfort of one’s own house.

2. Retail Toy Shop Franchise

Retail toy stores deal with educational toys, puzzle games, doll toys, action toys, baby toys, and other such toys. Such businesses have the need of a commercial space and also regular customer traffic.

3. Play Zone Franchise

Play zones provide fun and exercise both to children. Such businesses may involve higher investments but earn money in the form of entrance fees and membership fees for birthday parties, etc.

4. Hobbies and Stem Toy Shops

Such businesses include science kits, robotics, and DIY projects along with model building toys and educational games.

Recommended  Link: Top Retail Franchise Options in India

Top Kids Indoor Toys Franchises in India

There are a number of brands which offer franchises in India in the toys and indoor play space. Some brands offer franchising for educational toys, while some other offer franchise for toy rental and sales, indoor play zones, etc.

Brand  Business Type                     Cost of Investment              Best Suited To

Khilonewala Toy Library and Rental: Rs. 4 - 10 Lakhs               Home-based and Small

                                                                                                     Businesses

TToys Bazar   Retail Toy Store          Rs. 20 – 32 Lakhs              Retailers

The Kids Capitol Indoor Play Centre  Depends upon location     Shopping Malls and

                                                                                                   Commercial Premises 

 Funskool India Educational Toys      Contact Brand Retailers

SmartivitySTEM and DIY Toys           Contact Brand Educational

                                                           Toy Stores

Hamleys India Premium Toy Store:   Premium Investment         Large Commercial Premises

These brands will offer assistance in terms of store setup, stock management, staffing, marketing, etc., making the job easier for the franchisee.

Suggested  Link: Retail Franchise Options in India

Investments, Space Needs, and Profitability

The investment required for a kids' indoor toys franchise in India depends on the business model you choose.

Breakdown of Costs

To start off your franchise business, make a budget for the following costs:

Costs,                     Estimated Cost

Cost of Franchise       ₹2-7 Lakhs

Store Interior:             ₹4-12 Lakhs

Stock                         ₹5-10 Lakhs

Working Capital       ₹2-5 Lakhs

The cost will differ from franchise to franchise based on their requirements.

The Profit Potential of a Kids Indoor Toys Franchise

It is fascinating how profitable one can be when making money through an indoor toy franchise. The fact that there is always going to be a demand for children's toys makes the indoor toy franchise business to do well all year round. An indoor toy franchise is bound to be profitable since the business is going to generate profits regardless of the time of the year.Most toy franchises make money from things like

•           Toy sales

•           Educational kits

•           Birthday gifts

•           Festival shopping

•           School and daycare orders

•           Monthly toy subscriptions

Lots of big toy stores say they make a profit of between 20% and 35%. Toy libraries can also make money every month from people who're members. It usually takes a Kids Indoor Toys Franchise around 18 to 24 months to start making more money than it spends, depending on where it is and how it works.

You can also read about the Profitable Retail Franchise Businesses in India

Things to Think About Before You Buy a Toy Franchise

Picking the franchise is really important, just like picking the right place to set up your business. The Toy Franchise you choose will be a part of your life.

*Choose the Right Place for Your Toy Franchise

You should open your Toy Franchise store in areas where families with children go often, such as:

•  Residential areas where people live
•  Shopping malls where people go to buy things
•  High streets with a lot of shops
•  Near schools and daycare centres where children are
• Compare What Kind of Help You Get from the Toy Franchise

*Look for Toy Franchise brands that help you with:

•  Training your staff
•  Marketing your Toy Franchise
•  Managing the toys in your store
•  Setting up your Toy Franchise store
•  Getting new toys regularly

*Check if the Toys are good quality.

Always pick a Toy Franchise that sells toys that're safe and will last long. The Toy Franchise should sell toys.

*Understand Who Your Competitors Are

Look at toy stores near you, online stores, and local businesses before you decide to invest in a Toy Franchise.

You can also read this: How to Choose the Right Franchise Business

Challenges You Should Be Aware Of

Just like other retail stores, toy franchises do experience some challenges.

*Online Competition

Online stores always give discounts. Having a franchisor that is supportive of both online and offline marketing can help to counter these challenges.

*Toy Trends

Trends change from time to time among children. You should go for a franchisor who introduces new toys every now and then.

*Store Rent

If you plan on having a retail store, make sure that the rent is affordable based on your budget and sales projections.

Future Prospects for Kids Toys Market in India

The prospects for the toy industry appear very bright, with growing awareness of educational toys, growing popularity of STEM education toys, increasing online shopping trend, and the government's initiatives toward the development of local production being some of the major reasons.

There is also an increased demand for eco-friendly toys, do-it-yourself toys activity kits, and even toy libraries subscription. This makes opening a franchise for kids' indoor toys a good business idea in India.

Conclusion

Franchise of kids' indoor toys in India is an attractive business venture for entrepreneurs who wish to venture into the rising children's retail industry. There exist numerous franchise brands that suit different levels of investment for entrepreneurs.

The success of such a business venture relies on the selection of the most suitable franchise brand, location, quality products, and excellent customer service. As more and more parents continue investing in the development of their children through education, it is anticipated that the demand for educational toys will rise.

Disclaimer: The brands mentioned in this blog are the recommendations provided by the author. FranchiseBAZAR does not claim to work with these brands / represent them / or are associated with them in any manner. Investors and prospective franchisees are to do their own due diligence before investing in any franchise business at their own risk and discretion. FranchiseBAZAR or its Directors disclaim any liability or risks arising out of any transactions that may take place due to the information provided in this blog.