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 ‘Indian Toy Industry’ Background
 Wide product range
 Mainly concerted around urban cities
 Predominantly characterized small scale concern and unorganized sector
 Manufacturing trend-
# labor intensive
# master craftsmanship
# creative designing
 The industry has been growing at over 15-20% every year and is poised to
grow even more
 Identifying toy industry as a focus area, Government of India along TAI has
been providing support to the Indian toy manufacturers

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 Chinese Dominance
(1) Mass Production
(2) Cheaper Prices
(3) Innovation
(4) Variety

 EU reports point out that 85% of “problematic imported toy products”

come from China

 UK and US plan to enforce set rules to boycott imported toys made in

Chinese “sweatshop” factories

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 Objectives
 Primary objective- To understand:

Why is Indian Toy Industry Lagging Behind?

• Secondary Objective-
(1) Since I plan to take HR as my minor, so getting a practical exposure in
HR department would be a learning a experience.
(2) To identify and tap new marketing channels for the company.
(3)To try and establish Public Relations with the corporate for future dealings.

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E mail:-akrishna1234@rediffmail.com
 Advantage to India Inc.
 Harmonious relationship with US and Europe
 Government is nowadays increasingly providing Duty drawbacks and
other benefits to Indian toy manufacturers
 Increased awareness of Patent and Copyright laws
 UNIDO national programme for development of toy Industry
 Synergy and harmonization among various toy manufacturers in the
country
 Free Indian economy- potential growth in entrepreneurship
 Now after getting split ups with the left parties, government can take
aggressive stands to promote the growth of all the manufacturing
industries including Toy

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 Reflections
 Interaction with the professors at IIT- Delhi, Prof, Mr. L.K Das over the
challenges faced by the organization (technology and design specific)
 Cracking a deal with international recreation parks Pvt. Ltd. (IRPPL) for
3000 toys for the company
 Involvement in annual buyer and seller meet- Toy Biz 2008
 Interaction with Chinese buyers at the meet
 Successfully designed a software for calculating company’s costing
 Suggested and supervised ‘Job Rotation’ technique at the organization in
order to avoid monotony
 Exceptional learning experience at company’s R&D department
 Visit at Footwear Design and Development Institute (FDDI) Noida
 Case study -“Chinese Entanglement”
The Case: Mattel, Inc., the world’s most renowned and largest toy company in
California USA, during August-September 2007 was thumped by a number of
allegations regarding its flawed designs , hazardous quality and inefficient supply
chains.
Background: Amidst competitive scenario where survival is the sole mantra,
outsourcing through Asian countries was seen as only solution by the major
companies to focus on cost cutting
Key issues:
 To discuss Mattel’s emergence as the world's premier toy-maker
 To critically examine the reasons behind Mattel’s product recalls for more than a
decade
 To identify the problems in outsourcing manufacturing operations to suppliers in
low-cost countries
 To suggest different ways of handling Mattel’s crisis
Mattel’s outsourcing problems:
 Disproportionate focus on cost cutting
 Fissure/gap in quality control (failure to notice safety checks)
 Flaws in Management (mixed Delegation with Responsibility)

Suggestions for Mattel:

 Creating value for money should be the objective rather than cost cutting
 No compromises on quality
 Long term contractual deals should be avoided
 Planning high quality and safety standards and pledging to stick to that.
 It should take responsibility for company’s reputation, customer expectations and
above all its problems and issues.
 Changing its outlook.

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 Suggestions
 More institution to cater to the HR problems of the toy industry
 Avenues for technology transfer
(1) Foreign Collaborations
(2) Licensing Arrangements
(3) Outsourcing of production by developed countries
 Government should more aggressively try to change the conservative outlook of
Indian Toy manufacturers
 European quality at Chinese mantra
 Launching Rolling mix
 To retain the unskilled workforce, The manufacturers can actually provide them with
incentives, such as PF and insurance plans covering the whole family of the workers
 The Toy manufacturers should understand the need of getting certified and registered
 Conclusion
The above discussion concludes that the Indian toy makers
should:
1. Remain dedicated to build its trade relationships with the
developed nations.
2. Needs to educate its manufacturers and suppliers about the
quality and safety requirements.
3. Understand that cost cutting techniques should be seen as a
defensive strategy but never as a strategic solution
4. A mark on the world map can be made by analyzing China’s
drawbacks and India’s strengths.

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E mail:-akrishna1234@rediffmail.com