Contents

1. List of figures ...................................................................................................................... 2

2. List of tables ........................................................................................................................ 3
3. Executive summary............................................................................................................. 4
4. Indian toys industry - Overview.......................................................................................... 5
5. Types of Toys ...................................................................................................................... 6
6. Export & Import of Toys ..................................................................................................... 6
7. Trends in the Toy industry .................................................................................................. 9
8. Major hubs and clusters in India for MSMEs toy manufacturers..................................... 11
9. Industrial Hubs .................................................................................................................. 12
10. Toy Manufacturing Clusters .......................................................................................... 15
11. About Channapatna ...................................................................................................... 19
12. Competition from Chinese toys .................................................................................... 24
13. CPM matrix ................................................................................................................... 25
14. Current marketing strategy .......................................................................................... 25
15. Key Issues and Challenges in Marketing Activities ....................................................... 27
16. Certificates and Marks Related to Channapatna Toys.................................................. 29
17. Safety Standards & Compliances .................................................................................. 34
18. Majors Players selling Channapatna products.............................................................. 38
19. Home Decor and Accessories ....................................................................................... 54
20. Product range of home decor and accessories ............................................................ 56
21. 4 P’s of Home decor and Accessories ........................................................................... 57
22. Government Aid and Incentives ................................................................................... 58
23. Literature review........................................................................................................... 61
24. Marketing Objective ..................................................................................................... 64
25. Sample and data collection ........................................................................................... 64
26. Objectives of the primary research .............................................................................. 64
27. Findings of the study ..................................................................................................... 65
28. Other Recommendations to assist Marketing Efforts .................................................. 75
29. Bibliography .................................................................................................................. 76

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 1. List of figures
Figure 1 : Map showing location of Channapatna ................................................................... 19
Figure 2: Pictorial representation of the manufacturing process ........................................... 24
Figure 3: Symbol of World Fair Trade Organisation ................................................................ 29
Figure 4 : Symbol of Craftmark ................................................................................................ 33
Figure 5 : Photos of Varnam Store at Indiranagar ................................................................... 38
Figure 6 : Varnam Packaging .................................................................................................... 39
Figure 7 : Description on Varnam Packaging ........................................................................... 40
Figure 8 : Screenshot of Varnam Facebook Page .................................................................... 41
Figure 9 : Aatike Products and Offers ...................................................................................... 41
Figure 10 : Screenshot of Aatike Facebook Page ..................................................................... 43
Figure 11 : Snapshot of Aatike Website ................................................................................... 43
Figure 12 :Aatike at Bangalore International Airport .............................................................. 43
Figure 13 : Packaging of Maya Organic Products ................................................................... 45
Figure 14 : Packaging of Maya Organic Products .................................................................... 45
Figure 15 : Screenshot of Maya Organic Products on Flipkart ................................................ 46
Figure 16 : Screenshot of Maya Organic Facebook Page......................................................... 47
Figure 17 : Oodee’s Logo ......................................................................................................... 47
Figure 18 : Product Details on Oodee’s Packaging .................................................................. 48
Figure 19 : Oodee’s Packaging ................................................................................................. 48
Figure 20 : Products of Sri Kaveri Handicrafts ......................................................................... 49
Figure 21 : Screenshot of Shilpa Trust Facebook Page ............................................................ 51
Figure 22 : Logo of Cauvery ..................................................................................................... 51
Figure 23 : Screenshot of Cauvery Handicrafts Emporium ...................................................... 52
Figure 24 : Bar Graph representing product preferences ....................................................... 65
Figure 25 : Age wise product preferences ............................................................................... 65
Figure 26 : Age wise product preferences ............................................................................... 66
Figure 27 : Age wise product preferences ............................................................................... 66
Figure 28 : Pie chart depicting perception of quality ............................................................... 67
Figure 29 : Preference for certificate mark.............................................................................. 68
Figure 30 : Average amount spent on toys .............................................................................. 68
Figure 31 : Variation in preferred place of purchase ............................................................... 69
Figure 32 : Perception of Channapatna toys ........................................................................... 71

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 2. List of tables
Table 1: Import of toys............................................................................................................... 7
Table 2: Commodity wise data .................................................................................................. 8
Table 3: Export of toys ............................................................................................................... 8
Table 4: Commodity wise export data ....................................................................................... 9
Table 5: Percentage wise distribution of toys manufacturing MSMEs ................................... 11
Table 6: CPM Matrix ................................................................................................................ 25

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 3. Executive summary

Channapatna is a town about 60 km from Bengaluru, famously known as "toy town”. The
traditional toys and dolls are handcrafted of special wood in various bright colors and are
protected as a geographical indication (GI) under the World Trade Organization (WTO).
With mass and cheaper forms of production coming up, the handicraft is fast losing its charm.
Being a very labor intensive and time consuming manufacturing process, its revival is
essential to conserve and protect this traditional form. The labors work independently and
most of them are turning to export markets for their living. In the domestic market, the toys
are facing stiff competition from their cheaper and more attractive, durable Chinese
counterparts. In order to meet the needs of the local market, the artisans have come up with
alternate and newer product categories like home accessories and jewellery. Though, newer
product adaptations are coming up, our project deals exclusively with appropriate marketing
strategies for these famous toys. We chose to limit our study to the toys, since they represent
the origin of this craft and its revival is essential to sustain the unique aspect of the craft. The
strategies we have devised are based upon data collected from primary and secondary
resources.

4
 4. Indian toys industry - Overview
Toys and games in India witnessed single digit retail value sales growth in 2014, following
the strong double-digit growth seen in 2013. This slowdown was mainly due to the toy
industry being flooded with cheap Chinese imports that resulted in Indian toy manufacturers
being decimated. Also, online retailing offered products, mainly Chinese imports, at low
prices which also negatively affected sales of Indian manufacturers.

The Indian toy industry is a major market for both domestic and international players, owing
to low penetration (0.5 per cent) as well as growth in the size of the middle class. India's toy
industry has a meager share of 0.51 per cent of the global market. The Indian toy market,
whose size is estimated at about Rs 8,000 crore (as of March 2013), is expected to grow at a
compound annual growth rate (CAGR) of 30 per cent by 2015.

A study by ASSOCHAM in this field said, overall toy imports into India increased at a
CAGR of 25.21 per cent between 2001 and 2012. Imports from China and Italy surged at a
CAGR of 30 per cent and 38.6 per cent respectively during this period.

Nearly 40 per cent of Indian toy makers have already closed down in the last five years and
another 20 per cent are on the verge of closure, the study said. The toy industry in India is
concentrated mainly in the small and cottage sectors, with about 4,000 manufacturers in all.

The worst-hit toy clusters are in Allahabad, Delhi, Kanpur, Lucknow and Patna. About 50 per
cent of the toy units are in Delhi-NCR, 35 per cent are in Maharashtra, and the remaining 15
per cent are scattered across the country.

The toy industry currently employs a total of around three million people in the organized
and unorganized sectors. With robust growth anticipated by 2015, the Assocham study
expects employment in the industry to rise to around five million by 2015.

It is estimated that there are approximately 800 enterprises in India engaged in toys
manufacturing falling primarily in micro and small scale sectors. It has also been observed
that at the national level a hefty portion of the Indian Toy manufacturing Industry (MSMEs)
is still in the unorganized sector accounting for almost 60 percent share. In addition there are
few toys manufacturing units located in large scale sector and the prominent ones include

5
Funskool ( under collaboration of MRF and Hasbro ), Hanung toys , OK play etc plus foreign
brands like Mattel that are importing toys from their factory at China and marketing them in
the Indian market.

5. Types of Toys

Although a wide variety of toys are available in the Indian market, broadly they can be
classified/clubbed in two distinct categories based on their application & purpose i.e.
educational or recreational toys. Within these two categories under Educational toys various
toys & games made out of plastics and cardboard materials are prominent.

Recreational toys mainly include Electronic toys (remote control, video games), Battery
operated toys (cars etc), Plastic toys (Dolls etc), soft toys, Mechanical pull back toys etc. Out
of all of these toys Electronic toys & games and Battery operated toys are presently not being
manufactured in India and are imported. For all other type of toys they are being
manufactured in India as well as being imported.

6. Export & Import of Toys

While SMEs are being pummeled by Chinese imports within India, made-in-India toys are
offering tough competition to Chinese products in the mid- and high-priced segments in both
domestic and international markets. Industry experts also say that major global buyers have
slowly begun looking towards India.

In current scenario the Indian toy market is flooded with Chinese toy imports and thereby the
Indian toy manufacturers are being decimated as a result of dragon effect. The Indian toy
market still has an enormous potential to grow considering its huge population and the fact
that almost 50 percent of our total population is under 25 yrs of age. In addition the global
market for toys which at the present level is estimated at US$ 80 billion ( Rs 4.8 lakh crores)
is still not tapped by our MSME toy manufacturers as exports from India for toys presently
constitute less than 0.08 percent of this huge market. The world market for toys is currently
dominated by China that produces toys worth US$ 29 billion every year (almost 36 percent
share of total world market for toys) out of which US$ 17 billion worth of toys are consumed
in China itself and balance toys worth US$ 12 billion per annum are exported to other parts
of the world with major destinations being USA, EU etc.

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It is estimated that approximately 30 per cent of the Indian toys market is served by Domestic
manufacturers (MSMEs and Large units), with the rest 70 percent (approximately) being
accounted by imports mainly from China (approximately 75 percent share of total imports of
toys in India), which offers wider variety of toys of inferior quality at cheaper prices and
attract children of all ages. Due to this fact, the domestic toy industry, which largely consists
of micro, small and medium enterprises (MSMEs), is facing a difficult time in competing
with imported toys particularly from China. In order to survive in the Indian toys market,
many Indian MSME toys manufacturers have resorted to importing cheaper toys from China
(cheaper by 25-30 percent as compared to Indian toys) and market them in the Indian market.

Import of Toys in India from major countries of the world

The statistics on imports of toys in India have been provided in the table below that clearly
shows that China is the major source for imported toys in India with almost 75 percent share.
The data also shows that the imports of toys in India is expected to reach a level of approx Rs
2000 crores during year 2013-14 thereby increasing @ 21 percent from 2012-13.

S. No Year Total import of Major countries of

toys (in Rs. Crores) Imports (% share)
HS code 9503,
9504, 9505
1 2010-11 924 China (72)
USA (7)
Taiwan (6)
2 2011-12 1318 China (76)
USA (5)
Taiwan(3)
3 2012-2013 1634 China (74)
USA (7)
Italy (4)
4 2013-14 (April- 495 (projected at China (74)
June,2013) Rs. 2000 crores for USA (7)
entire year) Italy (4)

Table 1: Import of toys

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Import : Commodity wise (values in Rs. Lakhs)
S.no HS Commodity 2014 – % share 2015 - % share
code 2015 of total 2016(Apr- of total
imports Sept) imports
1 9503 , puzzles of all kinds 168,870.55 0.0617 98,597.55 0.0770
2 9504 Video game 24,872.39 0.0091 12,959.53 .0101
3 9505 Festive and other 9,853.68 0.0036 5,147.38 0.0040
entertainment articles

Table 2: Commodity wise data

(Source - Department of Commerce, Export Import Data Bank, GOI)
Export of Toys from India to major destinations
The statistics on export of toys from India have been provided in the table below that clearly
show that USA, UK, UAE are the major destinations

S. no Year Total export of Major countries of

toys in Rs. Crores exports (% share)

1 2010-11 162 UK (22), USA (25)

UAE (5)
2 2011-12 233 UK (10), USA (26)
UAE (6)
3 2012-13 337 UK (12), USA (31)
UAE (5)
4 2013-14 (April- 96 (projected at Rs UK (12), USA (31)
June,2013) 400 crores for entire UAE (5)
year )

Table 3: Export of toys

(Source - Department of Commerce, Export Import Data Bank, GOI)

8
Export : Commodity wise ( value in Rs. Lakhs)

S.no HS code Commodity 2014-2015 % share 2015-2016 % share

of total (Apr-Sep) of total
exports exports
1 9503 Other toys, 25,055.82 0.0132 17,443.45 0.0205
Reduced size
models and similar
recreational
models, puzzles of
all kinds

2 9504 Video and game 7,754.19 0.0041 4,694.33 0.0051

consoles, articles
for funfair,
table/parlour
games, billiards,
special tables for
casino.
3 9505 Festive, carnival 25,832.38 0.0136 24,267.68 0.0286
or other
entertainment
articles or other
entertainment
articles

Table 4: Commodity wise export data

(Source - Department of Commerce, Export Import Data Bank, GOI)

7. Trends in the Toy industry

The Indian Toy industry has witnessed a lot of changes over the last few years with regard to
categories of toys, innovation, eye-catching design and other aspects. The revamping of the
toy industry has shown tremendous growth & expansion in the domestic market. The growing
9
awareness among parents in India has lead to the growth in toys market and particularly
educational toys and games made of plastics and cardboard that offer creativity and lead to
the development of the brain of the child.

In recent years, cities like Ahmedabad, Bangalore, Hyderabad and Pune have become the
most important manufacturing sites of the Indian toy industry. Among the local
manufacturers in India about 59 % are still focusing on the production of cheap and
unbranded toys which appeals to the price-sensitive Indian consumers. In the future it is
expected that these companies will shift towards branded toys as well to stay competitive
with international companies.

Internet retailing is becoming a more and more important distribution channel due to several
reasons. Consumers have increasing access to the internet and online retailers often have
better merchandise in terms of variety, new launches and the offer of branded toys. The share
of internet retailing in sales grew from 1 % in 2007 up to 18 % in 2012.
Focus on quality
Indian consumers pay more and more attention to high-quality products and thus branded
articles. Although the price is often still the major deciding factor, its importance is relatively
less in the case of well-known branded toys that promise good quality. Especially remarkable
is the fact that 64 per cent of consumers plan their purchase and as many as 57 per cent of
these look for a specific toy or game.
Factors in the decision to buy
The children usually accompany their parents and have a direct influence on the decision to
buy. TV advertising plays a major role here. The most popular product categories are
electronic toys, followed by soft animals and hard toys. Presents make up a significant share
of toy sales. Indian tradition demands that the person receiving a present must give back
something similar. Experts suspect that this accounts for about 50 per cent of the market for
gifts for people outside the family.
Educational toys have gained popularity in urban India
A change in attitude towards buying educational cum entertainment toys was seen, which was
observed primarily in urban cities. This trend was driven primarily by the country's young,
upwardly mobile, urban class. Parents were no longer satisfied with their children engaging
in coloring and toys which make sounds. They understood the importance of skill and
personality development, a process that starts as early as a couple of months old. Due to

10
being proactive and more aware, these parents increasingly opted for structured development
through toys.
Internet retailing
Traditional toys and games stores continued as the predominant distribution channel for toys
and games in India in 2014, accounting for a dominant share of retail value sales. However,
internet retailing also witnessed a further significant gain in retail value sales share. Most of
the larger e-commerce companies like Flipkart and Snapdeal sold toys online, while e-
commerce portals focused on baby products, such as Babyoye, also offered a collection of
toys. There were also specialized online toy retailers like Yellow Giraffe, which sold toys
according to age and skill levels.

8. Major hubs and clusters in India for MSMEs toy manufacturers

Region Approx Distribution of toys Prominent States in the region

manufacturing MSMEs (%)

Northern 70 Delhi , UP (Noida & Greater

Noida)

Western 18 Maharashtra (Mumbai)

Other regions 12 West Bengal (Kolkata), Karnataka

(Bangalore), Tamil Nadu(Chennai)
etc.

Table 5: Percentage wise distribution of toys manufacturing MSMEs

Source: www.nsic.co.in

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 9. Industrial Hubs

The processes and methods involved in the industrial toy manufacturing are very different
from those of a cluster. Below is a gist of the product categories, processes, materials, etc.
used in the industrial manufacturing of toys:

Material Processes Products

Plastic / PVC Injection molding, blow molding, insert Pull Along, Spinner, Drag &
molding, Roto-molding Go, Riders, Transport
Models;
Building blocks, Learning
Aids;
Money banks;
Dolls, Play kits;
Outdoor toys: Sports
equipment.
Tin & Metal Die Pressing, transfer printing, assembly Transport Models, Trains,
Musical Toys, Money banks,
Pencil boxes, Collectibles,
winding toys etc.
Wood Cutting, finishing, turning, printing, Building Blocks, mobiles,
painting, etc Construction & transport
models, pull along, alphabets,

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 furniture.
Board games Printing, die cutting, molding, assembly, Puzzles, Jig Saw, Chess,
sealing. Scrabble, Monopoly etc.
Soft / Plush : Carding, pattern cutting, stitching, face & Dolls, teddy bear, animals,
Stuffed Toys eye features, filling accessories back-packs, cushions, etc. in
cotton & synthetic pile
fabrics.
DIY, Craft / Activity based, Stationery Items Technological / Electronic / Action toys (Very
minimal presence in Indian Toy Industry) but gaining momentum.

 NCR covers almost 60% of current domestic toy market. Seemingly unorganized, the
sector has well established supply chain. Historically, the toy trade in NCR started in
the Old-Delhi region including Sadar Bazar, leveraging proximity to - Railway
stations for accessibility to buyers, Wholesale market for materials & availability of
various skill sets. To accommodate growing needs, the industry spread to industrial
areas of Kirti Nagar, Jhandewalan, Janakpuri, Naraina. Wide network of Mini
enterprise / Small scale Vendors with dedicated skill set, are concentrated in Sadar,
Seelampur, Laxmi Nagar, Tughlaqabad etc.
 Toy City at NOIDA was set up a decade ago to develop geographically integrated
cluster. In spite of wide range participation & investment in the initial phase, currently
very few units operate from here.
 Some of the big manufacturers of this region are: Fun Zoo toys (Greater Noida, UP),
Jasco Handicrafts (New Delhi) – an important manufacturer of soft and plush toys,
Smart Plaything Pvt. Ltd. (New Delhi), Girnar International (Delhi).
 The toy manufacturers in Maharashtra are concentrated mainly in Mumbai. However,
there are certain other important plants in Pune, Nagpur and Nashik as well. Some
mentionable names are: Mattel Toys (Mumbai), Playmate (Mumbai), Gulshan Toys
(Pune).
 The remaining 12% which is concentrated in other parts of India are important players
from Karnataka, Chennai, West Bengal, Andhra Pradesh, etc. Kidken Edu Solutions
(Bangalore), Learner’s World (Bangalore), Afterskool toys and games Pvt. Ltd.

13
 (Kolkata), Funskool (India) Ltd. (Chennai) are manufacturers from this section of the
country.
 The Assocham study also added that cities like Ahmedabad, Bangalore, Hyderabad
and Pune were fast-emerging as toy manufacturing hubs.

Key players

 Mattel Inc.
 The Lego group
 Hasbro
 Funskool
 Bandai
 Leap frog
 Butterfly Edufields Pvt Ltd (Butterfly Fields)
 Chalk and Chuckles Products Pvt Ltd
 EdSix Brain Lab Private Ltd
 Flinto Learning Solutions (Flintobox)
 Hanung Toys and Textiles Limited
 Jay Robotix Pvt Ltd
 MadRat Games Pvt Ltd
 Olympia Games & Toys Pvt Ltd
 Pegasus Toy
 Kraft Pvt Ltd
 Reliance Trading Corporation (Learners Play)
 Shinsei Industries (Min Toy Pvt Ltd)
 Zephyr Toymakers Pvt Ltd

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 10.Toy Manufacturing Clusters

 Channapatna

Channapatna toys are a particular form of wooden toys

(and dolls) that are manufactured in the town of
Channapatna in the Bangalore Rural district of
Karnataka state, India. This traditional craft is protected
as a geographical indication (GI) under the World Trade
Organization, administered by the Government of
Karnataka. As a result of the popularity of these toys,
Channapatna is known as Gombegala Ooru (toy-town)
of Karnataka. Traditionally, the work involved
lacquering the wood of the Wrightia tinctoria tree,
colloquially called Aale mara (ivory-wood). The craft
has diversified over time; in addition to the traditional
ivory-wood, other woods—including rubber, sycamore,
cedar, pine and teak—are now used as well. Vegetable dyes are used in the coloring process
to ensure that the toys and dolls are safe for use by children. Animals, dolls, jigsaw puzzles,
blocks, tops, pull-trains, etc are some of the most common toys. Apart from toys a number of
utility items are also produced such as key chains, candle stands, pen stands, kitchenware,
stationery items, etc.

 Kondapalli

Kondapalli is a census town in

Krishna district of the Indian state
of Andhra Pradesh. It is located in
Ibrahimpatnam mandal under
Vijayawada revenue division. It is
located at 16 km from Vijayawada,
on National Highway 221. It is
very famous for Kondapally Toys
known as Kondapalli bommalu.
The toys are chiseled from locally

15
available special light softwoods (Tella Poniki) and painted with vegetable dyes, and vibrant
enamel colors. They are made by local wooden and lay artisans. The artisans who make these
toys are known as ‘Aryakshatriyas’. It is said that these craftsmen migrated from Rajasthan to
Kondapalli around the 16th century bringing with them the art of crafting toys. The most
popular toys include Dasavatarams (ten incarnations of Lord Vishnu) elephants with Ambari,
palanquin-bearers carrying the bride and bridegroom, toddy tapper, set of village craftsmen,
as well as various animals. The papier mache swinging doll is a favourite with many.

 Dungarpali

Dungarpali cluster falls under Orissa State in Balangir district.

The Dungarpali cluster employs 571 plus Artisans & forms 51
SHGs supporting the strong work force. The mobilisation gains
momentum day by day. Cane and bamboo are the two most
commonly-used materials for dolls and toys. No mechanical devices are used in the craft.
Apart from human and animal figures, toy shotguns and musical instruments are crafted.

 Sheopur Kalan

Sheopur is a city in Madhya Pradesh state of central India. The town is

traditionally famous for its wood carving. The wood carvers of Sheopur, with
great sensitivity and skill transform different varieties of wood. The crafts
persons of Sheopur make pipes, masks, toys, doors, stands, windows, wooden
memorials, flower vases, bedposts and cradle posts etc.

The Sheopur Kalan cluster is able to form 300 plus Artisans & 25 SHGs
supporting the strong work force. The tribals are blessed with the inborn art of
carving and make very attractive items. Lathe-turned and lacquered toys in
bright colors and at affordable prices are popular all over the state. Carved wooden toys, dolls
and elephants exhibiting the skills of the artisan are also made. Bhurkul or gular wood,
mango wood, green bamboo, shisham wood, Doodhia wood, lac, lac stick, oil, old cloth,
colored paper, waste material for stuffing, clay etc. are some common materials used.

 Udaipur

16
 Udaipur is a big centre for wooden toys. The craftsmen use the local wood doodhia which
is soft and can be finely chiseled and shaped. The toys are lacquered and polished with leaves
of a flowering cactus to give them a better look and increase their life.

The large variety of toys made in Udaipur include the cart drawn by a sparrow, kitchen
sets, grinder, cradle on a stand, gas lantern, gramophones, trains, cars, jeeps, aeroplanes,
counting stands, and clock towers. Animal figures include horses, camels, and elephants.
Udaipur is also famous for imitation dry fruit which bear a striking resemblance to the real
fruits.

 Bassi in Chittorgarh district is another noted centre for wooden toys where the entire
village is engaged in wood-carving and in making wooden products.

 Jaipur too is very well known for cloth dolls and toys which are generally dyed and
stuffed with waste material. These toys are beautifully decorated with colorful paper
with expression writ large on their faces.

17
Mathura

Mathura Cluster falls under Uttar Pradesh State in Aligarh district consisting of 500 plus
artisans and 20 SHGs. Jute, latex, polyurethane, or vinyl are some common raw materials
used. Gods and goddesses idols, dolls are some of the toys manufactured here but it is
majorly known for its rugs and durries (carpets). The cluster also produces soft toys.

 Chitrakoot

Chitrakoot Cluster falls under Uttar Pradesh State. It is well known for
its perforated lacy craft. Items are made of sisam, dudhi and sal. The
woodcarvers create magic on the articles they prepare. Important items
include small shrines and deities, low carved stools for marriages.
Carved wooden toys, dolls and elephants exhibiting the skills of the
artisan are also made.

 Kalaigaon (Assam), Kalimpong (West Bengal), Thanesar (Haryana), Khetri

(Rajasthan), Karyal Brahmna (Jammu and Kashmir), Lucknow (Uttar Pradesh) are
some of the clusters in India engaged in the manufacturing of soft toys. The materials
used are not necessarily all natural.

18
 11.About Channapatna

Figure 1 : Map showing location of Channapatna

Channapatna is a city located 60 km south-west of Bangalore, India on Bangalore-Mysore
state highway. The city is famous for its wooden toys and lacquer ware. In the native
language kannada, Channapatna is also called as "gombegala ooru" meaning town of toys.
These toys are manufactured in traditional and advanced small scale industries.
Manufacturing and twisting of raw silk, rice, ragi and coconut is a major product of
Channapatna taluk.
Channapatna taluk comes under Ramanagara District. Its headquarters is located in
Bangalore-Mysore highway. The total geographical area of the taluk is 53,587 hectares. It has
three hoblies namely 1) Kasaba 2) Malur 3) Virupakshapura.
These toys have obtained geographical indication (GI) status under the World Trade
Organization. In Channapatna, most households have some sort of association with toy
making

Social and economic background

The lacquer ware industry began as a household craft that catered to the local tourist market
of Karnataka. Many artisans sold their wares on the roadside at Channapatna and productivity
was low. In the last twenty years, the industry has grown rapidly. It now exists as small and
medium scale enterprises, serving a large export market. Due to the phenomenal growth and
the influence of market forces from abroad, the nature of employment, the demands on
artisans and the character of the artisans has changed dramatically.

19
As early as 1892, hereditary artists called “Chitragars” were engaged in wood-turnery which
is the basis of lacquer ware artistry. Bavasmia, a local artist, is known as the originator of the
craft in Channapatna and nearby areas. He went to study lacquer ware in the northwestern
state of Punjab. After a period of experimentation, he introduced study of the craft at the
Industrial School in Channapatna. Bavasmia also mechanized the craft through the power
lathe.

Though Bavasmia introduced lac-turnery to encourage the Chitragar, their response was
hesitant, so admission was opened to students of other castes and religions. Bavasmia
convinced Muslims and scheduled caste members to join the course; even today, the majority
of Channapatna craftspeople belong to these communities.

A number of interesting features concerning women's participation emerge at Channapatna

- more urban than rural women are involved;

- participation is religion and caste based;
- over 90% continue to work on hand lathes;
- most women continue to be in the household sector;
- women continue to produce traditional products required for local markets;
- women's earnings are significantly lower than men's;
- the number of women in lac-turnery is declining.

In rural villages, with few exceptions, lacquer ware artisans are predominantly male with
only a handful (2-5) of female artisans in each village. These village women are mostly self-
taught, presumably with the help of male artisans in the family. Female participation in the
craft is greater, however, in urban areas. In the urban areas of Channapatna a good number of
Yelakeri Adi Karnataka (SC) women and a smaller number of Muslim women are involved
in lacquer ware production. This contrasts with national and state-wide statistics for FBSSEs
in general.

Rural women engage in seasonal agricultural work which is not available to their urban
counterparts. Additionally, urban women have easy access to the institutions and training
centers which have nurtured the industry. The distance, the need for daily travel and the low
stipend all limit rural women's participation in urban training programs

20
Women make different products than men. And these products determine the market and
income levels to which women have access

Channapatna, the toy town of Karnataka famous for its wooden toys for ages was reeling
under severe financial crunch for more than a decade and the craftsmen community involved
in the manufacturing of the same reached near starvation a few years back

Channapatna toys

Channapatna toys are a particular form of wooden toys (and dolls) that are manufactured in
the town of Channapatna, The craft has diversified over time; in addition to the traditional
ivory-wood, other woods—including rubber, sycamore, cedar, pine and teak—are now used
as well. Manufacturing stages include procuring the wood, seasoning the wood, cutting the
wood into the desired shapes, pruning and carving the toys, applying the colors and finally
polishing the finished product. Vegetable dyes are used in the coloring process to ensure that
the toys and dolls are safe for use by children. Hale wood is used as:
1. close- grained

2. Moderately hard

3. Ideal for turning

The product range has spread its tentacles from traditional toys to producing articles meant
for interior decoration, household utility articles, spice box, salt and pepper box, coaster sets,
coat hangers, key chains, mobile holders and an extended range of corporate gift items.

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The process can be done on lathe which is machine or hand operated. For turning slender and
delicate items, hand lathe is suitable

Process of Lacquering

Manufacturing Process - Channapatna Toys

Process of the toy making

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1. The mallet is used to beat the work piece to the desired form.
2. The piece is then cut in various parts using the mechanized saw machine.
3. The work piece is turned on the lathe machine using tools to curve the surface.
4. Cuts and incisions are made on the surface using chisels.
5. Sandpaper is used to smoothen and file the surface for a sleek finish.
6. This tool is used to measure the work piece with reference to the technical drawing of
the design.
7. The surface is smoothened for the process of coloring.
8. The colored lac sticks are used to impart the colors to the work piece.
9. Different vegetable dyes are used manufacture various colored lac sticks.
10. The heat produced by friction melts the colored lac stick on the surface

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 Figure 2: Pictorial representation of the manufacturing process

12.Competition from Chinese toys

Channapatna toys are facing severe competition from Chinese toys, which have already
altered the buying preferences of the customers Channapatna has always thrived on exports.
There is a certain beauty in the bright natural colors. If you go to China, they can make every
sort of toy that one can possibly imagine, but the beauty of channapatna toys lies in the fact
that they are made by hand from natural colors and are not mass manufactured

In the past, most artisans in Channapatna used to make traditional Dasara toys. But as the
prices of raw materials have gone up, especially that of lacquer, most artisans have given up
the traditional profession. The price of lacquer has gone up from Rs. 700 to Rs. 1,750 in a
span of a year. While the traditional Channapatna toys are made out of soft wood also called
as white wood or ‘Aale Mara’ and non-toxic vegetable colors, cheap and attractive Chinese
toys have silicon and other dangerous materials in them. Despite all the competition and a
variety of toys available in the market, artisans say that homemakers across Karnataka,
especially those in the old Mysore region, prefer colorful Channapatna toys to China made
toys for displaying at their homes during the Dasara festival. A mat made up of white wood
will cost nearly 1000 while Chinese mat will be available at Rs 250 – 400 and there are very
less buyers for the quality product the demand for cheaper products are more in the market .

Despite of coming under a GI and having bright colors channapatna toys are not flying off the
shelf. Cheap and attractive Chinese clones are giving a run of their money .

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 13.CPM matrix
The Competitive Profile Matrix (CPM) is a tool that compares the firm or industry and its
rivals and reveals their relative strengths and weaknesses.

critical success factors weights Channapatna toys Chinese toys

range of products 0.08 2 0.16 4 0.32
prices 0.09 2 0.18 4 0.36
health safety 0.1 3 0.3 1 0.1
market share 0.09 2 0.18 4 0.36
customer retention 0.1 2 0.2 3 0.3
technology 0.12 3 0.36 4 0.48
promotions 0.08 1 0.08 4 0.32
online presence 0.07 2 0.14 4 0.28
financial positioning 0.15 1 0.15 3 0.45
global expansion 0.12 2 0.24 3 0.36
total 1 20 1.99 3.33

Table 6: CPM Matrix

The CPM analysis reveals that Chinese toys are the stronger player in the industry than
Channapatna toys. Channapatna toy industry should create their strategies according to their
strengths and weakness and improve their ratings in the most significant toy market.

14.Current marketing strategy

1. Story telling

The town’s toy making tradition is said to have originated in the 18th century when Tipu
Sultan was gifted a lacquered-wood toy made in Persia. Impressed by the craftsmanship of
the toy, he is said to have asked for artisans from Persia to be brought in to train locals to
make such toys. Artisans who learnt the craft settled in Channapatna, some 65km from his
capital Srirangapatna. Thus the town’s association with toys began.

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Some players who sell Channapatna toys in the market continue to tap this story as their
major marketing tactic. They try to convey how the craft originated by mentioning the same
on their packaging. They try to connect with the customer by conveying about the history and
origin of the craft.

2. Campaigns

Today, the craftsmen involved in the manufacture have braced themselves by opening new
vistas into the current trend with drastic changes in their thinking and attitude by producing
products according to present market demands. This has brought back the smile on the faces
of hardworking craftsmen and traders involved. This change in attitude has not just given a
stimulus and dividend to the craftsmen community, but this has changed the face with a new
outlook to the entire toy town of Channapatna.

The IPR Regime in India is inadequate to address all of the issues involved in protection of
handicrafts. The GI and Handicraft Mark if successfully implemented can be powerful tools
for creating value for handicraft sector and are expected to bring monetary gains in terms of
increased sales turnover, higher prices and better profitability. They are also expected to
bring overall socio-economic development and better lifestyle for the artisan sector in few
years. However, they will not live up to expectations if they sit passively on some register as
is currently happening in India
Various campaigns or exhibitions where Channapatna toys can be found:
 100 hands
This programme, aims to provide a support network to small artists/ artisans/social
enterprises and livelihood groups. The Channapatna toys are sold at various campaigns held
by 100 hands. Varnam, a for-profit social enterprise works with artisans from Channapatna to
create lac-turnery products that have a purpose within the home décor and lifestyle space.
Varnam has been empowering the artisans of Channapatna by giving them an outlet to
explore what the traditional art can be tweaked up to do.
 Dastkar mela
Dastkar is an Indian NGO working with craftspeople across India, for promotion and revival
of traditional India. It was founded in 1981 in Delhi, by a group of six women,
including Laila Tyabji, its current chairperson. Channapatna toys are showcased at dastkar
mela as to make them more familiar among the domestic market .

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  Exhibitions of other craft societies like Abhimaan Craft Society also promote Channapatna
toys. The Abhimaan craft society was formed by a group of artisans, in July 2012. They
named the program as“KALA SAMMELANA” which means a union of arts and crafts.
They are a registered union under the Ministry of Textiles. Organizations like
Abhimaan Craft Society help the artisans to promote and sell their craft based goods
“direct to consumers” in different places.

15.Key Issues and Challenges in Marketing Activities

There are numerous issues that these clusters and the organizations involved with them are
currently facing and may face in the future. Some of them are described below:
1. Participation in International Toy fairs /Exhibitions is quite expensive and
unaffordable for these small clusters, hence majority of them (almost 95 percent) do
not participate in such events there by leading to dismal export of toys from India or
even in the domestic market the recognition is much lower.
2. Latest trends in marketing i.e. E-Commerce or online marketing through own website
or other web portals are still to be adopted by toys manufacturers or organizations
supporting these clusters. The e commerce has been a prominent avenue of marketing
adopted in developed countries and other competing economies like China.

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3. In India lesser Number of Exhibitions/ fairs focusing on toys industry are held each
year (may be 2 Nos), whereas in China, on an average 4 such International level toy
fairs are held every year that helps manufactures in promoting their products. So,
required platform is itself not available in the first place.
4. Government initiatives and schemes for facilitating participation in exhibitions and
other marketing initiatives are still inadequate. Clusters lack awareness and hence are
unable to reap the benefits of the present opportunities.
5. Lack of awareness amongst the present distributors and retailers is another drawback
of these products. The sales staff at retail shops barely knows the story of
Channapatna toys and their USP, i.e., the fact that they are natural and not harmful for
the kids. Hence, they are not able to promote the product quite appropriately. It is very
vital that people associated with selling are educated about these products if the craft
has to be promoted.
6. Consumers of developed countries like the US and UK are well informed about the
natural and organic products and they are increasingly shifting towards such products.
However, in a country like India, people are still unaware of the benefits of these
products and this transition is not to be seen in the near future. It will still take time
for consumers in developing countries to realize and actualize the benefits of such
products. This problem is being faced now and will be present in recent years to
come.
7. Another problem which these products face and will continue to face in India is the
benchmarking and standardization of these products. There is growing awareness and
shift towards certified products. Since these products are handcrafted, every single
product is different from the other, even though the difference is not even noticeable
or negligible. For this reason, it is difficult to standardize these products despite the
fact that there are regular quality checks for consistency and maintaining similarity.
Thus, promotion becomes difficult without a certified programme.

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 16.Certificates and Marks Related to Channapatna Toys
Fair Trade

Figure 3: Symbol of World Fair Trade Organization

In the 1970s enthusiastic westerners started to become importers of crafts at the same
time as the rise of Bollywood and the decline of western influence on the local market for
toys. Today there are two Fair Trade organizations based in Channapatna today that seek to
wholesale the wooden toys not purely for profit: Shilpa Trust, who sell through SIPA, and
Maya Organic.

Two of the main ways of recognizing Fair Trade are through Fairtrade International
(previously called Fairtrade Labelling Organisation or FLO) and the World Fair Trade
Organisation (WFTO, previously called International Federation of Alternative Trade, IFAT).
They agreed a joint charter of Fair Trade principles in 2009.The charter recognizes that there
are many products that can be Fair Trade and states that: ‘Clearly one mode of operation
cannot address all the problems experienced in different product sectors (from coffee to
crafts)’. In this way FLO, which is the best known organization working in Fair Trade,
recognizes that there can be Fair Trade crafts, although they do not have a standard to
recognize crafts and so do not have any crafts carrying the FLO label. The charter also
explains that there are two routes to market for Fair Trade products, which are also
recognized in the EU Report of Fair Trade and Development (EU, 2006). Firstly, product
certification, for which there are standards for many commodities from tea to timber, from
coffee to cocoa, and more being developed all the time. The compliance to the standard is
audited and these products can then carry the Fair Trade label. In order to do this the standard
has to define what it applies to.

In the case of a commodity, for example coffee, this is not difficult, but for a craft
there many different forms and no one common definition. Consequently, to date, there is no
FLO product standard for a Fair Trade craft. The other method of recognition of Fair Trade is
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through the integrated supply chain where the products are made or produced and sold by
organizations that have Fair Trade as a core value throughout the organization. The
organizations that specialize in this route can be members of the World Fair Trade
Organisation (WFTO). In 2010, WFTO had 472 member organizations and individuals in
seventy-four countries (WFTO, 2010). Here the consumer usually recognizes the product as
Fair Trade through the brand of the member organization.

Indicator of the declining role of crafts within Fair Trade is the level of research on
craft compared to commodities such as food and coffee. For instance, The Fair Trade Institute
aims to list all the Fair Trade publications from 1992 to today in print or in journals. In the
early archives there are many references to craft work; however, recently there is increased
focus on food and a clear decline in the inclusion of craft products.

In 2013 the first dedicated Fair Trade Organizations were audited against the new
World Fair Trade Organisation (WFTO) Fair Trade Guarantee System and will be able to
label its product Fair Trade. A craft product made in Fair Trade conditions in the global
South will now be able to have a credible label (WFTO AGM 2013). Although the two Fair
Trade Organizations based in Channapatna are not yet externally audited, both Maya Organic
and Shilpa are members of WFTO. Fair Trade aims to create employment to disadvantaged
communities. It can sell exclusively in the local market, but often it does this by selling to
overseas and sometimes mainstream markets. With these markets come constraints and
changes to the craft. Fair Trade has engaged with wooden lac toys since at least the 1980s.

The World Fair Trade Organisation has ten Fair Trade principles, which should be
followed by Organizations who are members (WFTO 2011), which are given as follows:

Principle One: Creating Opportunities for Economically Disadvantaged Producers

Principle Two: Transparency and Accountability

Principle Three: Fair Trading Practices

Principle Four: Payment of a Fair Price

Principle Five: Ensuring no Child Labor and Forced Labor

Principle Six: Commitment to Non Discrimination, Gender Equity and Women’s Economic
Empowerment and Freedom of Association

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Principle Seven: Ensuring Good Working Conditions

Principle Eight: Providing Capacity Building

Principle Nine: Promoting Fair Trade

Principle Ten: Respect for the Environment

Principle Three is called ‘Fair Trading Practices’ and in it WFTO recognize the role
of design and state that the Fair Trade Organisation ‘avoids duplicating the designs of
patterns of other organizations without permission.’ Shilpa has had regular design sessions,
using both national and international designers. The designer needs to know not only the
local craft they are working in detail, but also the commercial restraints that impact the final
cost of the product as well as what market they are designing for.

GI certificate

India, being a signatory to World Trade Organisation (WTO) and Trade Related
Intellectual Property Rights (TRIPS), requires protection for its products originated with
specific quality and geographical origin under GI so that the producers of other countries do
not corner the benefits arising out of the unique products.

GI's, the latest addition to Intellectual Property Rights (IPRs), is defined as indications
which identify a product as originating in the territory of a member-country or a region or
locality in that territory where a given quality, reputation and other characteristics of it are
essentially attributable to its geographical origin. According to IPRs, producers/inventors can
claim protection for their items in other WTO-member countries only if they are protected in
the country of origin. According to law, individuals cannot hold GI certificates

In 2005 the Geographical Indicators registry granted a GI certificate in recognition of

the tie of the locality to the unique skills of and materials of the turned lac ware of
Channapatna, but this is very little used or known, although it could be a useful tool for
crafts. But the use of Geographical Indicators within Fair Trade needs to be further
developed. SIPA went to Italy and saw how popular football is there and came back with the
idea to make football key rings, fridge magnets, etc.

Shilpa has achieved the non-toxic finish on the toys as required by the international
market by using paint tested for international standards for toxicity mixed with the natural

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lac. The awareness has now changed. With the new colors so a new look has come to the toys
– more translucent colors and more of the wood showing. There are conflicting and
contradictory roles created in the commercialization of the craft. On the positive side, as the
craft becomes more mainstream and gains larger orders it has potential to generate more
income, and encourage the maintenance or generation of the crafts skills, but at the same time
it both loses its traditional identity, and thus exposing itself to copying by other craftspeople,
and may also compromise Fair Trade principles. And so some significant changes and design
developments can be tracked and attributed to both Government and Fair Trade
Organizations in Channapatna. Copying is part of the craft tradition, and the use of
Geographical Indicators is perhaps a more appropriate form of protection than design
protection for traditional crafts.

WIEGO

Women in Informal Employment: Globalizing & Organizing (WIEGO) is a global

network focused on securing livelihoods for the working poor, especially women, in the
informal economy. They believe all workers should have equal economic opportunities and
rights. WIEGO creates change by building capacity among informal worker organizations,
expanding the knowledge base, and influencing local, national and international policies. The
informal economy is comprised of economic activities, enterprises and workers that do not
receive social protection through work or legal protection through the state. The concept
originally applied to self-employment in small unregistered enterprises. It has been expanded
to include wage employment in unprotected jobs.

In 1991 when Campbell researched the lac ware craft for FAO it was found that ‘more
urban than rural women are involved, over 90% continue to work on hand lathes, most
women continue to be in the household sector, women continue to produce traditional
products required for local markets, women’s earnings are significantly lower than men’s and
the number of women in lacturnery is declining.

The women lac ware producers of Channapatna traditionally made beads and simple
items. It was observed that mechanization, resulting in larger orders and electrification,
encourages the development of larger production units and small to medium-size factories.
These are replacing the household units where the women used to work. Without training to
transfer their skills to the power lathe, women are being excluded from the new mechanized
industry.

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 At Maya Organics they proactively train women in the use of the power lathe: training
for girls in lac ware – the people used to be scared of the machines and all. They didn’t
wanted to work, so slowly they started building the confidence and then they put them into
the working place and start training, and now in their organization there are more than 50%
women working in the craft. This appears to support the position of WEIGO in which women
producers have experienced significant progress in meeting their practical and strategic needs
through participating in collective forms of enterprise and linking to Fair Trade markets.

Producers of crafts in developing countries are mainly part of the informal sector
working in units that are not regulated by the government and do not receive social protection
through their work. For example, the International Labor Organisation (ILO) in 2002
estimated that 93 per cent of employment in India was informal. Craft work is a significant
contributor to the Indian economy. It is estimated that it is 15 to 20 per cent of the total
workforce and the market is around US$4.6 billion.

Craftmark

Figure 4 : Symbol of Craftmark

Established in 2006, the Craftmark is a certification that certifies genuine Indian
handicraft products produced in a socially responsible manner, develops sector-wide
minimum standards and norms for labeling a product as handmade and increases consumer
awareness of distinct handicraft traditions and strengthens the supply chain from
manufacturer to end consumer.

Under this initiative, AIACA (All India Artisans and Craftworkers Welfare
Association) licenses the Craftmark seal to artisan organizations, craft-based businesses,
cooperatives and NGOs for use on their products. Over the years they have been able to build
‘integrity’, ‘quality’ and ‘cutting edge design’ as some of the core values, evidenced by
endorsements from large global chains like West Elm and Ten Thousand Villages, who
regularly source Craftmark-certified products. Today, Craftmark certifies 80+ organizations
with an outreach of about 20,000 artisans across 20 states of India. Some of their members

33
include FabIndia, Dastkar Ranthambore, Aavaran, Sewa Mandir, Coppre, INTACH Kashmir,
Disha Shekhawati, Gramin Vikas Chetna Sansthan (GVCS), to name a few.

Varnam is one such member certified by Craftmark, which is initiated by All India
Artisans Welfare Association (AIACA) that endorses authentic handmade products with a
reassurance of quality and integrity. The registered members of craftmark are given
opportunity to showcase their products at international fairs like New York Gift Fair, India
International Gift & Handicraft Fair and various national level exhibitions and Melas. These
participations have generated many opportunities, and created many buyers. Orders and
enquiries were placed by buyers from Australia, Turkey, South Africa, Germany and USA.

17.Safety Standards & Compliances

ASTM Standards

ASTM F963 is Standard Consumer Safety Specification for Toy Safety. It is effective
from Feb. 10, 2009; all toys in the United States must meet the safety requirements of ASTM
F963, Standard Consumer Safety Specification for Toy Safety. The ASTM International
standard is cited in the Consumer Product Safety Improvement Act of 2008 (CPSIA), which
makes F963 a mandatory requirement for toys while the Consumer Product Safety
Commission (CPSC) studies the effectiveness of the standard and issues final consumer
guidelines for toy safety. ASTM International Committee F15 on Consumer Products
regularly reviews and updates F963 to ensure that its technical guidance is up to date and to
keep up with emerging hazards. Committee F15 is comprised of a dedicated group from
academia, consumers, industry and government.

ASTM F963 includes guidelines and test methods to prevent injuries from choking,
sharp edges, toxins, pinching, and other potential hazards. The latest approved revision to the
toy safety standard, F963-11, is now available for purchase from ASTM International.
Revisions made in F963-11 include sections on ingestion of magnetic components; acoustics;
yo yo tether toys; impaction hazards and flammability. Other revised areas reflected in F963-
11 include sections on jaw entrapment; packaging film/age requirements as they pertain to
use and abuse testing; and folding mechanisms and hinges. ASTM International’s open
consensus process and advanced Internet-based tools ensure worldwide access for all
individuals interested in participating in the standards development process.

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 Children today seem more sophisticated than ever, and just as their interests are
constantly changing, so must toys to entertain them. It follows that with new, innovative toys
come new safety considerations. Toy safety standards must keep up with these ever-changing
trends. Accordingly, Subcommittee F15.22 set out to examine these new product categories,
any newly-identified potential hazards in toys, and other areas where clarification to the
existing standard was needed. ASTM F963 is a living document, calling for modification and
improvement as toys change and as the CPSC injury data system is improved. The toy
industry, together with the CPSC and knowledgeable consumer groups, all play an important,
cooperative role. A large part of F963’s success has been its broad acceptance and
recognition in the U.S. and in other countries. This was achieved, in part, through cooperative
efforts between industry and government — conducting toy safety seminars and producing
other training tools such as a video demonstrating key safety tests.

EN 71 Standards

Before toys reach the shelves, they must undergo rigorous testing to ensure they are
safe for children to use. Safety testing a teddy bear, for example, might include tugging its
eyes, to make sure a young child couldn’t easily pull them out and swallow them, and setting
it alight, to check whether a child holding a teddy which caught fire, would have time to drop
it before being burnt. There are lots of different toys to test, from chemistry sets to swings
and slides, and things to test for, such as:

• Making sure toys cannot stab, trap, mangle or choke

• Checking the fire safety of high-risk products such as fancy dress costumes, play houses
and soft toys

• Ensuring children aren’t at risk from elements such as lead, cadmium and mercury when
sucking or chewing toys, with limits and test procedures for more than 80 potentially
dangerous substances, such as solvents and preservatives

• Regulating the ingredients in finger paints, and requiring that these taste bitter to deter a
child from swallowing them

More parts are always being added to the standard to cover a range of safety aspects
from new methods of analyzing certain chemicals to new specifications for domestic
trampolines, cosmetic kits, and board games involving smell and taste. European

35
standard EN 71 specifies safety requirements for toys. Compliance with the standard is
legally required for all toys sold in the European Union.

The standard has been published in 13 parts:

 EN 71-1: Mechanical and physical properties

 EN 71-2: Flammability

 EN 71-3: Specification for migration of certain elements

 EN 71-4: Experimental sets for chemistry and related activities

 EN 71-5: Chemical toys (sets) other than experimental sets

 EN 71-6: Graphical symbols for age warning labeling

 EN 71-7: Finger paints

 EN 71-8: Swings, slides and similar activity toys for indoor and outdoor family
domestic use

 EN 71-9: Organic chemical compounds – Requirement

 EN 71-10: Organic chemical compounds – Sample preparation and extraction

 EN 71-11: Organic chemical compounds – Methods of analysis

 EN 71-12: N-Nitrosamines and N-Nitrosatable Substances

 EN 71-13: Olfactory board games, cosmetic kits and gustative games

The European Toy Safety Directive strengthened the rules on toy safety and
introduced significant changes including:

• Manufacturers and importers face new obligations to ensure that no unsafe toys enter the
market

• From July 2013, the accessible parts of toys must no longer contain certain heavy metals
such as lead, or chemicals that could provoke cancer, change genetic information or harm
reproduction (known as CMR substances)

36
• Fragrances that are likely to cause allergies are also forbidden from July 2013 Labels and
warnings

All toys on sale in the UK must carry the CE mark. This shows that
the manufacturer has declared that the toy meets the requirements of the
European Directive and is intended for sale in the European Community.

Also the Lion Mark is necessary. This tells consumers that the
manufacturer follows the British Toy and Hobby Association code of practice
and guarantees that the toy meets the requirements of BS EN 71. You might
see various other labels on certain toys, as required by the Directive.

Toys that might be dangerous for children under three years old must
state: ‘Warning. Not suitable for children under 36 months’, together with an
indication of the risks, such as choking on small parts. They may also include the optional
symbol pictured

• Toys such as slides and climbing frames should state: ‘For domestic use only’, and specify
whether they are for indoor or outdoor use

• Food that contains toys should state: ‘Toy inside: adult supervision recommended’

• Water toys such as inflatables must state: ‘Warning: only to be used in water in which the
child is within its depth and under supervision’.

The players in the export market for Channapatna toys such as Varnam, Aatike,
Maya, Sri Kaveri Emporium, Shilpa all follow these standards and produce their products.
Although the toys have now become popular in a wider market it has been at a cost. The
process of moving to a global market has meant sacrificing aspects of the product’s local
identity and, in turn, products become easier to copy by other toy-making countries such as
China. Although the craft’s centralization can lead to improved quality and capacity, it can
also exclude women producers unless they are proactively trained. Fair Trade Organizations
have made interventions such as training women and training in toy safety that has helped the
craft. It is with these challenges and both the help and hindrance of two Fair Trade
Organizations that the toymakers of Channapatna are developing their craft.

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 18.Majors Players selling Channapatna products
Varnam

Figure 5 : Photos of Varnam Store at Indiranagar

Varnam (meaning ‘colors’) is a multi-award winning social enterprise that has been
working with artisans Channapatna, for over 4 years. It has produced a series of designs
interpreting this 200-year-old toy-making craft in the home and lifestyle, women’s
accessories space, giving tradition a contemporary twist. Using traditional lac-
turnery methods popularized by the traditional Channapatna toys range, the label produces
home and lifestyle products, toys and jewelry. Varnam was started in late 2011 by Karthik
Vaidyanathan, who had just designed his own new home in Bengaluru in the Chettinad Style

38
– one that was much appreciated by visitors for both its interiors and his use of the traditional
‘khanaa’ fabric in soft furnishings.

Figure 6 : Varnam Packaging

In 2014, after selling on the internet through the websites like Snapdeal, Filpkart,
Ebay, Amazon, Paytm and Shopclues and through certain retail stores across the city, the
brand’s first flagship store, called the Varnam Store, was started at Indiranagar in Bengaluru.
Varnam closely trains and employs women artisans of Channapatna. In an industry where
more than 90% of the artisans are men, many of Varnam’s products have been handcrafted by
women artisans. Proceeds from the sale of Varnam products go into the design and
production of more innovative products while striving to keep the craftswomen employed.
Varnam works with a team of 20 artisans and two artisan clusters, who are either paid a
monthly stipend or on a per product basis. He is also planning to introduce a pension scheme
for artisans and provide them performance-based incentives apart from loans at zero per cent
interest to buy raw materials. Varnam also trains and works with interns of well-known
design institutes like NIFT and NID.

Varnam is also certified by Craftmark, which is initiated by All India Artisans

Welfare Association (AIACA) that endorses authentic handmade products with a reassurance

39
of quality and integrity and has also won several awards regarding the packaging & design of
their craft.

Figure 7 : Description on Varnam Packaging

All the above mentioned characteristics are all emphasized even in the packaging of
Varnam products. There are few customers who personally like the packaging of Varnam and
prefer it for gifting and carrying purpose. As can be seen from the photos they even mention
the origin of the craft. They have reoriented the 200 year old toy- craft to the modern context
by ensuring that each design has utilitarian value and an aesthetic that is current.

Varnam have a Facebook page and is also having its own website which is very
interactive and provides thorough information about the products, Varnam and its crafts. To
make their designs and products differentiating they have even given names to the products
like kuruvis, flaky snowman, quackers family etc. they constantly come up with a lot of
campaigns for ever season, whether it be a festival or the new collection that they come up
with. They do not offer their products at discounted rates. The price range at which Varnam
offers their product is from Rs. 125 to Rs. 5000. The price are a bit high compared to other
players in the market, as they believe that the products they offer to their customers are of

40
superior quality and made with intense precision. Varnam believes in selling the story behind
the craft. Varnam team also participates in the various exhibitions and fares which gives them
quite a good exposure.

Figure 8 : Screenshot of Varnam Facebook Page

Aatike

Figure 9 : Aatike Products and Offers

Aatike promoted by SK Nirmiti, focuses on production, distribution and sale
of Handmade Indian Toys, Home & Office Décor products having a traditional charm with a
modern flair. Aatike products are inspired by natural colors, textures, shapes & traditions of

41
India. They are made from locally available sustainable natural products and are handcrafted
by various artisans across India including Channapatna, Etikoppaka, Saharanpur. Aatike
products are carefully designed and crafted with lot of care to enhance a child's learning,
safety in usage and most importantly be FUN. The Aatike team is driven to present customers
with a unique range of products made with natural materials that bring happy moments and
are value for money.

SK Nirmiti was started in 2006 with the idea of exporting wooden products to
international markets. It intends to explore new business opportunities having social impact
by contributing to the cottage industry and selling products under the Toys, Home & Office
Decor categories. They are based out of Bangalore & work with skilled artisans in
Channapatna, Etikopakka & local carpenters for their designs. Importance is given to
sourcing of materials locally following stringent quality processes as per CE
certifications. They have a passion for design and manufacture of toys, home & office decor
products and specialize in Indian Toys for Pre-School Children and hope on having an impact
by Design on Society.

It has its store in the Bansharkri stage II, Bangalore. Aatike is also available at Kempe
Gowda International Airport Terminal II. It has its own website where they sale their
products underdifferent categories like, Aatike for children, Aatike for others, Aatike for pet,
Aatike tales, Gift zone, bundled offers, and festive sale like cristmas sale. They do put their
roducts on sale. They not only offer a range of channapatna toys but also offer home and
office décor products. They believe in catering to all groups of customers and not only toys.
Their price range starts from Rs.160 to Rs. 1820. They not only sell on Snapdeal, Filpkart,
Ebay, Amazon, but also on Firstcry, Bestshoppers, Babyoye, TradeIndia, IndiaMart, etc.
through their facebook they try and endorse their products by posting about the latest
collection and the discounts and offers available on their products, as shown in the snapshot
below.

42
 Figure 10 : Screenshot of Aatike Facebook Page

Figure 11 : Snapshot of Aatike Website

Figure 12 :Aatike at Bangalore International Airport

43
 As can be seen their packing is also quite simple though interesting. They have photos
of the product inside the product and gives descriptions of the same. They are easy to carry
and to be gifted too. It also protects the product from getting damaged. They not only
promote their products at the domestic level but also at the international level too. Aatike
team also participates in the various exhibitions and fares which gives them quite a good
exposure.

Maya Organics

Maya Organic is a livelihood development initiative involved in developing a network

of artisans, workers and micro-entrepreneurs capable of producing high quality wooden
products. They are a non-profit company registered under section 25 of the Indian Companies
Act and a member of the World Fair Trade Organisation.
Currently Maya Organic is working with the artisan
community in Channapatna. In addition to supporting
existing artisans with contemporary design/product
development support and consistent orders, the initiative
has also been training several new artisans, particularly
women into the handicraft cluster in order to revive the
cluster with an infusion of fresh skills, designs and
markets and supporting the artisans to build viable micro
entrepreneurial alternatives.

44
 Figure 13 : Packaging of Maya Organic Products
As can be seen from the pictures the MO emphasizes on the fact that the products are
sustainable wood sources, hand- crafted, Made with natural dyes and most importantly Made
in India. They have these symbols on the packaging of all the products. On one side of the
package they have the description about the product, its source of origin and about Maya
Organic. They are easy to carry and to be gifted too. It also protects the product from getting
damaged. They do not promote their products at the domestic level and also at the
international level. They sell their products to the distributers abroad and they sell it either
under their own name or under MO. They are doing very well at the export level so do not
concentrate much at the domestic level. Though they have a facebook page and also sell their
products through the various platforms like Snapdeal, Filpkart, Ebay, Amazon and
Shopclues. But as of now the sales are very less in the domestic market.

Figure 14 : Packaging of Maya Organic Products

45
 As can be seen their packing is also quite simple though interesting. They have black
and white photos of the product inside the product and gives descriptions of the same. They
are easy to carry, stored and to be gifted too. It also protects the product from getting
damaged. For the products to be exported they have little bit different packing. And the
products are provided with the certificates. They do not promote their products at the
domestic level but do sell very well at the international level. Their major sales come from
the exports. Maya Organic team also participates in the various exhibitions and fares which
gives them quite a good exposure. The price range products is from Rs, 150 to Rs.2900

Figure 15 : Screenshot of Maya Organic Products on Flipkart

Maya Organic recognizes that merely with inputs of finance/ technology or even some
kind of knowledge little is likely to change since it may not be possible for people to depend
on these continuously. Building capabilities thus not only becomes essential but is perhaps
the most sustainable and effective way to alleviate poverty. Maya Organic operates from the
central premise that addressing livelihood issues is only possible through building mutually
beneficial partnerships between the various stakeholders. In this regard, it presents a wide
range of opportunities for interested individuals and institutions to involve themselves as
active partners in this process.

46
 Figure 16 : Screenshot of Maya Organic Facebook Page

Oodees

Figure 17 : Oodee’s Logo

Jufaro Craft Private Limited is a design and brands startup from Bengaluru, India.
OODY & OODEES are their brands. They design and create innovative, exciting, wooden
toys & home decor products -handcrafted by a consortium of humble and cheerful women
artisans using a 200 years old traditional lacware craft. They blend lessons from modern-day
research in child development and the traditional, environmentally responsible Indian craft to
make delightful and functional toys. Their toys are of international quality, while retaining
their essential Indian-ness.

47
 Figure 18 : Product Details on Oodee’s Packaging
These colorful, durable, designer, handcrafted toys are far superior to the mass-
manufactured, plastic, soulless Chinese goods flooding the market. They do not use any toxic
material, nor do they create any toxic waste. All colors used are 100% natural. They contain
no lead, no arsenic. Computer & video games are Digital garbage that make young minds
numb and make them fat and obese. Unlike computer games, they bring back the tradition of
playing with real Oody toys—that exercise their mind and body in equal measure.

Figure 19 : Oodee’s Packaging

Eco- Friendly, safe, sustainable, hand- crafted, made with natural dyes, with CE
certification, complying with ASTM Standards are some of the characteristics that are
emphasized in the packaging of Oodees products. There are few customers who personally
like the packaging of Oodees and prefer it for gifting and carrying purpose. As can be seen
48
from the photos also, the packing is very colorful and attractive. Oodees have a facebook
page and is also having its own website which is very interactive and provides thorough
information about the products, Oodees and its crafts. They do not promote their products at
the domestic level much, but do sell very well at the international level. Their major sales
come from the exports. They believes in selling the story behind the craft.

Sri Kaveri Handicrafts Emporium

Sri Kaveri Handicrafts was established way back in 1899 at Channapatna (Karnataka).
With its wide industrial experience, the company has carved a niche in the Handicraft
industry as a Handicraft Item Manufacturer, Exporter, and Supplier. Under the aegis of the
CEO Mr. MV Nagendra, the company is gradually rising to newer heights of success. Due its
exceptionally designed products, the company has set
up a benchmark for the competitors. Sri Kaveri
Handicrafts commenced its journey as an exclusive
wholesale wooden handicrafts Manufacturer from a
small shop. With its extensive experience, the company has now reached a distinct position in
the industry as a Handicraft Manufacturer, Exporter, and Supplier.

Figure 20 : Products of Sri Kaveri Handicrafts

The company is having an elite factory and factory outlet spread over 8000 square
feet space on the Bangalore - Mysore highway. The company is having a highly innovative
team of artisans and craftsmen who are dedicatedly engaged in providing an elegantly
designed Handicrafts range to the clients. They have more than 3000 artisans who are highly
experienced and trained to bring exceptional quality of Handicraft Products. Clientele with
their unrivalled quality production, they have earned great appreciation from their customers.

The creativity of their well-trained artisans has provided them a huge clientele across
the globe. Their traditional products are highly demanded in the global as well as domestic
market. Apart from the domestic business sphere, they also deal in UK, USA, and Australia.
49
The company does not focus much on the domestic market. It majorly exports its products.
Thus do take into consideration the various marketing aspects. Also they not only have the
wooden Channapatna toys, but also produce the other wooden products like boxes, bangles,
etc. they have their own website too.

Shilpa Trust

Established in 1992 in Bangalore, India, “Shilpa Trust” is a renowned as one of the

foremost manufacturers, exporters and suppliers of Lacware toys, sandalwood craft, silk
stoles, artistic furniture and key chains. To bestow their customers with a fine quality range
of products, they have developed a state-of-the-art manufacturing unit, in which their
products are fabricated with the latest production processes. These products are fabricated
using high grade raw material procured from their reliable vendors of the market.

The sound infrastructure of their organization

assists them in every process related to their domain. Their
teammates work in close sync with each other and also
with their clients to offer the best quality products in an
efficient manner. Due to factors such as a wide distribution
network, timely delivery procedure and ethical business
practices, they have garnered the satisfaction of their clients. Each product offered by them
undergoes strict quality testing procedures. This assists them in delivering the best quality
product range to their clients.

Their exporters include Bahrain, United Arab Emirates, United States, Germany and
United Kingdom. Their total annual sales are around US $100,000 to 199,999. They don’t
even sell under their own name. They just act as manufacturers and suppliers of Channapatna
toys to the various distributors. Thus, as they don’t have their own brand they never focus on
the marketing of the products. They have never even tried to come up with their own brand
over the lifetime of the company. The quality of the products is very good. As they majorly
export all the products that they produce are of export quality and comply with ASTM
standards and European standards. They also follow fair trade policy. Even on their facebook
page they do not endorse much about the products that they manufacture and sell.

50
 Figure 21 : Screenshot of Shilpa Trust Facebook Page
Cauvery Emporium

Figure 22 : Logo of Cauvery

Karnataka State Handicrafts Development Corporation Limited, (KSHDCL) was
established in the year 1964 under Companies Act 1956. The objective of the corporation is
to preserve, develop and promote handicrafts. Government of India and Government of
Karnataka are the share holders in the organization.

Karnataka State is richly endowed with widely practiced, accepted and acclaimed
crafts since time immemorial. The major crafts are sandalwood carvings, rosewood inlay,
channapatna lacquer ware & toys, Mysore traditional paintings, bidri ware, kinhal toys,
Navalgund dhurries, stone carvings, other wood carvings, traditional jewellery, mirror and
embroidery, banana fiber, terracotta, bronze icons, Pile carpets and many more. Karnataka

51
State Handicrafts Development Corporation Limited is the pioneer in establishing 13 craft
complexes across Karnataka state wherever there is concentration of artisans for various
crafts. Common facility centers are also built at these craft complexes for the benefit of
artisans.

Around 4544 artisans are registered with the corporation and over 50,000 artisans are
indirectly depending upon the corporation for preserving, developing and promoting their
craftsmanship. The corporation has provided 1222 living cum work sheds to the eligible and
deserving artisans. Raw materials such as sandalwood, silver and zinc are being provided to
the artisans at subsidized rates. Workshops and training programs are conducted periodically
to upgrade the craftsmanship and skills of artisans. Besides, providing forward and backward
support to the traditional artisans, courses are conducted to the interested persons in learning
and sustaining the craftsmanship in various crafts.

In order to market the products made by the artisans across the state 11 retail sales
outlets popularly known as 'Cauvery', Karnataka State Arts & Crafts Emporium at major
cities such as Bangalore, Mysore, Mangalore, Hubli, Chennai, Secunderabad and New Delhi
have been established.

The corporation has made inroads into both national and international markets. Its
products are widely accepted and admired world over. Besides, selling the artifacts in its
retail outlets, the corporation has been exporting to most of the developed countries. The
corporation has also launched online sales through its website www.cauveryhandicrafts.net
which is gaining momentum.

Figure 23 : Screenshot of Cauvery Handicrafts Emporium

52
 The corporation has its facebook page also, through which it updates about the
various products and events at the corporation. Under this name they also sale Channapatna
toys which are sourced from the manufactures like Shilpa Trust and Maya Organic, and also
few of the local vendors. As such individual marketing efforts are not taken for Channapatna
toys but as a whole they are sold under the Cauvery Handicrafts Emporium. The products are
available at the price range of Rs. 14 to Rs. 550, which is much cheaper than any other than
retailer of Channapatna toys.

Cauvery Mark on Channpatna Toys

53
 19.Home Decor and Accessories
Channapatna offers other products apart from toys are in category of home decor and
accessories products. The category of home decor and accessories product was introduced to
add more product variety in existing Channapatna toys to make Channapatna handicraft more
sustainable. The design intervention in home decor has also helped in the home decor
category. According to the designers the traditional techniques can be applied to many things.
It can be applied in making functional products also. Designers have brought diversification
in Channapatna craft. The products have become more utility based.

Raw material which is used for these products are generally hale mara (wrightia tinctoria),
pine, rosewood rubber and teak wood, other processes are same as toy manufacturing. Colors
are used organic and synthetic colors. The uniqueness of these products is their quality,
organic colors and eco – friendly.

1. Car seat cover

54
 2. Candle stand

3. Flower Vase

4. Pen stand

6. Tray 55
20.Product range of home decor and accessories

Channapatna Product

Home decor Kitchen accessories

Wall pegs and shelves

Flower vases Salt & pepper shakers

Napkin rings
Pen holder
Paper weight Jars
Coaster set
Candle stand
Fridge magnet
Lamps
Tray
Curtains knob

Key holder
Christmas and festive decor

Accessories

Fashion accessories Other accessories

Necklaces Car seat cover

Earnings Key chains
Cigarette holder
Beads
Wine holder
Bangles

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 21.4 P’s of Home decor and Accessories
Product
Channapatna has home decor and other products other than toys. Home decor and accessories
includes flower vases, salt & pepper shakers, napkin rings, pen holders, candle stand, skipping
rope handles, counting frames with beads, car seats, lamps, bangles, necklace, beads, earrings etc.
In these products mostly organic colors and hale mara (wrightia tinctoria), pine, rosewood rubber
and teak wood are used. These products are non-toxic and eco friendly.

Price

The price for home decor and other product varies from Rs. 15 to Rs. 1000 and above. The
products are available at various prices, like the key chains starts from Rs. 15, bangles starts
from Rs. 25, candles starts from Rs. 250 etc. these are some of various price points of
Channapatna product.

Promotion

Channapatna does not have any advertising or promotional activity. The organizations which are
linked with like “Maya Organic” Channapatna craft they participate in exhibitions. Some of the
organization like “Varnam” they do the social media marketing.

Place

Channapatna products are available at various stores like Maya Organic, Cauvery Emporium,
Caravan craft, Varnam, Fab India, as well as online of the same offline stores. Online stores like
Amazon, Shop clues, Gaatha, craftsvilla etc. also sell channapatna products which includes toys,
home decor, and other products.

57
 22.Government Aid and Incentives
Karnataka Urban Infrastructure Development and Finance Corporation (KUIDFC) had identified
eight clusters around Bangalore. The eight clusters are: Ramanagar-Channapatna, Kanakapura,
Nelamangala, Doddaballapur, Anekal, Devanahalli-Vijayapura, Hoskote and Magadi. Major
industrial areas close to these clusters are also included under the project. These towns come
under the Bangalore Metropolitan Region Development Authority (BMRDA) limits.

Channapatna Craft Park

Karnataka State Small Industries Development Corporation Limited (KSSIDC) offered 14 acres
of land at Channapatna for the project. The Department of Industries and Commerce,
Government of Karnataka sanctioned Rs 650 lakh under the ‘Assistance to states for developing
export infrastructure and allied activities’ (ASIDE) scheme of the Government of India. The
Office of the Development Commissioner (Handicrafts), Government of India, offered financial
assistance for the procurement of machinery for woodcraft.

A Common Facility Service Centre (CFSC) with sophisticated woodcraft machinery has been
established and has commenced operations. This common facility for woodcraft will be utilised
not just by the exporters but also by the entire artisan community. As the most of the machinery
would be too expensive for individual artisans to buy by themselves.

Furniture, kitchen accessories, educational toys, corporate gifts, living room accessories, fashion
jewellery are some of the products that will be manufactured at the Crafts Park.

Channapatna Crafts Park is India’s first crafts park and is located at Channapatna in Karnataka,
South India. Channapatna is a crafts cluster of over 3000 traditional artisans engaged in the
production of lacquerware. The Park was established to help preserve, nurture and grow their
skills by providing them with employment opportunities.

The Park has a sophisticated Common Facility Service Centre with state-of-the-art wood
working machines. The companies currently operating within the Park are: Alpha Designer
Cane, Ajmal Handicrafts, Ashrafi Fashions, Bharat Arts & Crafts, MAYA Organic Ltd., Shilpa
Trust and etc. These companies are engaged in the production of fashion accessories, corporate
gifts, kitchen accessories, lifestyle products, wooden furniture, toys & dolls, educational

58
equipments, accessories for perfumed products, natural fibre products, cane & bamboo articles
and furniture.

Export Promotion Council for Handicrafts (EPCH)

Export Promotion Council for Handicrafts (EPCH), has recommended exemption from Income
Tax, should be reintroduced covering all handicrafts products and exemption from Service Tax
be also extended to merchant exporters and more importantly the name of EPCH should be
included along with other Councils.

EPCH also recommended exemption from Service Tax while paying in any foreign currency
including Indian rupees at the time of participating in international shows and also continuation
of waiving of Service Tax on Membership Fee of the Council beyond March 31, 2010.

There is no direct subsidy given to Channapatna artisans. The artisans depend upon the local
market from where they receive order.

Self Help Groups and Other Organization

Self Help Groups (SHG) - Self-help group is a village-based financial intermediary committee
usually composed of 10–20 local women or men. A mixed group is generally not preferred.
Members make small regular savings contributions over a few months until there is enough
capital in the group to begin lending. Funds may then be lent back to the members or to others in
the village for any purpose.

Suhana and Sneha

The assembly women in Maya Organic are part of two self help groups which are Suhana and
Sneha. The aim of these self help groups is to organise the women working in Maya Organic so
that they are not harassed in any way. It also promotes women empowerment.

59
Some organizations are also involved in up-lifting Channapatna handicraft. Organizations are
like Maya Organic and Shilpa trust which provides them training and help them to become an
entrepreneur. They train artisan mostly focus on women and help them to start their own.

Maya Organic

Maya Organic is a Karnataka-based development organisation, which was initiated in 1989.

Maya Organic is currently working with the lacware handicraft workers of Channapatna to build
a sustainable fair-trade enterprise. It encourages women employment. Maya Organic works with
communities across slums in all of Bangalore’s rural areas. All the members of the worker-
owned enterprises are self-employed and shareholders of the enterprise; therefore they are
entitled to the profits and benefits generated through the work executed.

Shilpa Trust

Shilpa Trust is based in Bangalore, the capital of the Indian state of Karnataka. Shilpa works
with economically disadvantaged artisans, many of whom have not had access to education. The
Managing Trustee of Shilpa Trust, Mr. M. Bhupathy, has been active within India’s fair trade
community and is himself an accomplished craftsperson. He originally learned wood carving and
turning from his father, who earning his living as an artisan. Bhupathy observed the business
practices of retail agents in the community, and decided he wanted to bypass these intermediaries
and create an organization that would be of more benefit for artisans. He established Shilpa Trust
in 1992. Shilpa Trust provides artisans with children's educational assistance, free health check-
ups, social security insurance, a loan program, skill training and product development.

60
 23.Literature review
Selling a toy often involves selling to three individuals simultaneously, namely the child, who
will use the toy, the mother, who is concerned about safety, space to play, etc., and the father
who controls the purse strings.
Toys and Board Games can be classified in three broad categories.
a. Educational Toys and Board Games – Toys those demonstrate or project the educational
principles using simple tools and equipments in the field of science, geography, mathematics,
music and others.
b. Mechanical Toys – Toys those are specifically used for development of motor skills fitted with
simple mechanical devices. These can be battery or electrically operated also.
c. Other Toys: Toys those are meant to give pleasure to children for their mental and physical
development viz, hand coordination, recognition of different size, shapes and colors, etc.
However, in practice the above classifications of toys are overlapping in most cases.
Waqar Ahmad Khan 1and Zeeshan Amir conclude their study on handicrafts marketing
strategies in UP as that the lack of market awareness is the main obstacle for any village
enterprises to put up their products in urban markets. The reasons listed out for the failure of
village crafts include poor designs, low quality materials and inefficient market approaches.
Handicraft units, which are mostly run by individuals with sole proprietary form of organization
can’t afford to have separate and well-organized marketing system. In view of shortage of
financial resources and small scale of operation; advertising publicity cannot be undertaken by
artisans. Also they conclude that the absence of systematic marketing network has been a
discouraging factor. They suggest that the artisans must be organized by themselves under the
co-operative umbrella for marketing their products by themselves.
Amol Khandagale 2and Meet Shah conducted a study in Pune among toy store retailers. The
key understandings from their study are as follows. Branded toys moved faster in the market
which is line with the consumer expectance of assuming that a brand represents certain trust and
quality. The most fast moving toy categories are dolls, soft toys, remote controlled toys which

1
Amir, Z. (2013). Study of Handicraft Marketing Strategies of Artisans in Uttar Pradesh and Its Implications. Research Journal
of Management Sciences, 2(2), 23-26.
2
Khandagale, A., & Shah, M. (2015). A Study on Retailers Preference towards Chinese Toys over Indian Toys in
Pune City. JOURNAL OF BUSINESS MANAGEMENT AND ECONOMICS.

61
are out of scope of Channapatna toys. Low price and higher profit margin ensure that retailers
stack the Chinese toys in prime areas and give lesser importance to others.
Kristin Morency3 states that the toy-buying process is a parent/child collaboration. 40 percent of
all toys are purchased based on both the child and the parent being equally enthusiastic about
buying it. Major factors parents consider before purchase of toys are price considerations, age
appropriateness, occasion for purchase and perceived quality and value. The purchase is
motivated by an interesting combination of getting exactly what the child wants but also getting
something creative or educational, in line with what the parent wants. Also the toy purchase arena
is characterized by a high degree of impulse purchase.
Dilip Kumar4 and Dr. P. V. Rajeev discuss the advantage of internet marketing over other
modes for handicrafts promotion. Internet marketing makes it easy to focus on the target market
by using search filters. It enables direct inputs from the customers in forms of suggestions and
feedback. Investment through this form is minimal, so it reduces any form of barrier in terms of
expenditure. It enables a wider reach among the population.
Meryl P. Gardner5, Roberta Michnick Golinkoff, Kathy Hirsh-Pasek and Daniel Heiney-
Gonzalez found that when parents choose toys, one of the factors they consider is whether they
will help their child develop intellectually or creatively. Advertising messages affected what
parents considered important for their children.
Monica Chaudhary 6and Aayushi Gupta state that children seem to have significant influence
in product decisions for which they will be the primary consumer. Hence, marketers should focus
on the facts, the learning aspect of the toys or the video games apart from targeting at the kids
directly. Promotion policies should make the children aware and informed about the products
and the brands. Awareness could also be gained through children competitions in schools and
residential societies.

3
Toy and Game Decision Making Study, Toy Industry Association, June 2013
4
Kumar, D., & P.V., R. (2013). A NEW STRATEGIC APPROACH FOR MARKETING OF HANDICRAFT PRODUCTS.
International Journal of Applied Services Marketing Perspectives, 2(3), 540-543.
5
Gardner, M., Golinkoff, R., Hirsh‐Pasek, K., & Heiney‐Gonzalez, D. (2012). Marketing toys without playing around.
Young Consumers, 381-391.
6
Chaudhary, M., & Gupta, A. (2012). Exploring the influence strategies used by children: An empirical study in
India. Management Research Review, 1153-1169.

62
Manjusmita Dash7 found by her study limited to handicrafts in Orissa that most of the
handicraft items are chosen and purchased by the women of the family. Handicrafts are mostly
an impulse purchase people buy handicraft items by seeing it either in exhibitions or in local
shops. The family members can strongly influence buyer behaviour during purchase of
handicrafts.

7
Dash, M. (2015). THE ROLE OF FAMILY INFLUENCE IN BUYING HANDICRAFTS PRODUCTS. International Journal in
Management and Social Science, 3(2), 445-453.

63
 24.Marketing Objective

 To transform Channpatna Toys as a major player in the Toys market.

In order to transform Channapatna toys as a major player in the toys market competing with
branded products, there is a need to study the awareness of the product. Thus a primary research
was undertaken with a structured questionnaire.

25.Sample and data collection

The respondents to the questionnaire were not restricted by gender or any age bracket.
The criteria set to obtain responses were that the respondents should be parents of children of age
less than 12. The responses were collected online from sources who fit the criteria and also by
face to face interaction near stores across Bangalore, Chennai and Delhi. The cities were based
on convenience as the surveyors were hailing from the cities above.

26.Objectives of the primary research

 To understand the type of toys bought for kids across different age groups less than 12.
 To understand the perception towards non-toxic wooden toys
 To determine the place and price range of purchase of toys by parents for their kids.
 To understand the factors influencing the purchase of toys by parents for their kids
 To determine the awareness of Channapatna’s craft.

64
 27.Findings of the study

Preference of the type of products:

Products Preferred for purchase for Kids

30
25
20
15
10
5
0

Figure 24 : Bar Graph representing product preferences

Products Preferred for purchase for Kids of age 0-3

years

Soft toys
Vehicles
Dolls & Action figures
Puzzles &board games
Electronic & video games
Art & Craft sets
Building Blocks
Stackers
Toddler toys- rattles, teethers
0 1 2 3 4 5 6 7

Figure 25 : Age wise product preferences

65
 Products Preferred for purchase for Kids of age 4 -5
years

Soft toys
Vehicles
Dolls & Action figures
Puzzles &board games
Electronic & video games
Art & Craft sets
Building Blocks
Stackers
Toddler toys- rattles, teethers
0 5 10 15 20 25 30

Figure 26 : Age wise product preferences

Products Preferred for purchase for Kids above 5

years of age

Soft toys
Vehicles
Dolls & Action figures
Puzzles &board games
Electronic & video games
Art & Craft sets
Building Blocks
Stackers
Toddler toys- rattles, teethers
0 2 4 6 8 10 12 14 16 18

Figure 27 : Age wise product preferences

Puzzles and board games, Dolls and action figures, Soft toys and Building Blocks are majorly
preferred products. This is possibly skewed because of higher percentage of responses are
parents with kids of age group above 3. In the age group less than 3, Toddler toys like tethers,
building blocks, stackers are preferred. Meanwhile Puzzles and Board games, dolls and action
figures, soft toys are preferred in other age groups.

66
Perception towards wooden toys:

Perception about the quality of toys made of

wood

Inferior & cheap

quality
28% 28%
Good quality but not
as good as branded
plastic toys

Superior quality
44% products

Figure 28 : Pie chart depicting perception of quality

Only 28% of respondents perceive wooden toys as superior quality products with equal
percentage of respondents think them as inferior quality products. Notably, 44% of respondents
perceive wooden toys as good quality products but not as good as branded plastic toys.

It alarms a need to position wooden toys as superior quality products equivalent to any
other branded toys.

Willingness to purchase non-toxic toys and with safety certificates:

Preference to purchase non-toxic Willingness to pay a premium

wooden toys price for non-toxic toys

14% 16% Yes

Yes

No No

86% 84%

67
 Willingness to purchase a toy, if there is a
certification by the Government

6%
Yes

No

94%

Figure 29 : Preference for certificate mark

Over 85% percentage of respondents are willing to purchase toys that are non-toxic and made
out of wood and are also willing to pay a premium price for the product if required. Also 94%
respondents are willing to purchase toys with safety/ authenticity certificates.

Price range and place of purchase:

Average spending on toys

8% <Rs.500

36% 16%
Rs.500-1000

40% Rs.1000-1500

>Rs.1500

Figure 30 : Average amount spent on toys

Overwhelmingly, above 70% of respondents prefer purchasing toys at the price range of
1000 and above.

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 Preferred place of purchase for toys for
kids
35
30
25
20
15
10
5
0
Exclusive toy Maternity and LFS and GM E-tailers
shop childcare stores
stores

Preferred place of purchase for toys for

kids of age less than 3 years
8
6
4
2
0
Exclusive toy Maternity and LFS and GM E-tailers
shop childcare stores
stores

Preferred place of purchase for toys for

kids above 5 years of age
20

15

10

0
Exclusive toy Maternity and LFS and GM E-tailers
shop childcare stores stores

Figure 31 : Variation in preferred place of purchase

Respondents widely shop at Exclusive toy shops, Maternity and child care stores and Large
format stores. In the age group of less than 3, respondents prefer Maternity and child care stores
and Exclusive toy shops. As the age increases, respondents prefer to purchase at large format and
general merchandise stores over Maternity and Child care stores.

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 Above 5 years of age, E-tailers are also preferred opposed to low preference for purchase of
toys for kids less than 5 years of age.

Factors Influencing the purchase decision:

Weighted average of ratings of the factors influencing the purchase of toys
Weighted average of Ratings
Overall Age 0-3 Age 4-5 Age: > 5
Factors influencing the purchase of toys
ratings Yrs Yrs Yrs
Material of the toy 3.92 4.3 3.92 4.05
Durability of the toy 3.5 3.8 3.63 3.52
Non toxic toy 4.5 5 4.25 4.67
Recommendation of experts- teachers,
3.96 4.1 4 4
doctors
Price of the toy 3.64 3.1 3.54 3.95
Associated skill development 4.12 3.6 4.25 4.19
Quality of finishing 3.84 4.4 3.67 4
Safety of toy 4.8 4.7 4.92 4.76
Colour of the cells are dependent on the relative position of factors based on ratings. Red -
Position 1, Blue- 2, Green- 3,Yellow-4, Grey-5

The major factors that influence the purchase decision are Safety, non-toxicity, associated
skill development, advice from doctors / teachers and material. Price is the least factor that can
influence on the purchase decision. Material is a prominent feature in the purchase of toys for
kids of age less than 3, while associated skill development precedes material and finishing as the
age of kids ascend.

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Awareness:

Awareness about Willingness to consider

Channapatna toys channapatna toys in next purchase

8%
24%
Yes
Yes

92% No
76%
No

Willingness to spend an extra

money to buy channapatna toys

Yes
42% No
58%

Figure 32 : Perception of Channapatna toys

Only 8% of the respondents are aware about Channapatna’s craft and all of whom are
willing to consider Channapatna’s toys for their next purchase and are willing pay more, if
required. The questionnaire design facilitated the surveyors to carry a brief about the craft and
the respondents were asked if they will consider purchasing toys next time at a premium price if
required. 76% of respondents are willing to consider with 58% are willing to pay a premium
price for purchasing the well-crafted toys from channapanta. This shows a dire need to promote
the craft in order to increase the awareness levels. Also respondent’s willingness to consider the
products (with a brief) for next purchase is a motivating factor, as it makes way for promoting as
a story.

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Recommendations:

Marketing:

4P’s for Channapatna:

Product:

Currently Channapatna cluster produces toys suitable for age group less than 5. The study
has revealed that Parents are willing to buy Puzzle and boards, dolls and action figures for their
kids, thus appropriate research should go into manufacturing these products to facilitate line
extension. It is to be noted that, the new products developed, should not be yet another ‘Me-too’
products. There is a necessity for the product to have huge differentiations that are disruptive.

Associated skill development is one of the major factors besides, key inherent features of
Channaptana products – Safety and non-toxicity. The products should thus be developed with
view of providing better and promising skill development.

There are certain limitations in the approach: Designers have to create products within
the operational difficulties prevailing in the Channapatna craft industry.

Price:

The study has shown that the price range at which parents are willing to buy is 1000 and
further. Also parents are willing to pay a premium price for non-toxic natural toys made of wood.
Thus the monetary compensation for product is not a key challenge.

As a customer’s perceived risk and perceived benefits of a product influences the

willingness to purchase a product at certain cost, the promotional activity should focus on
reducing the risks / increasing the benefits to command a fair compensation equivalent to
competing branded products.

Place:

The products should be available at all places possible so that a customer can easily
purchase a product.

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 Toys of all types should be made available at Exclusive toy shops. Add to it, Toys for age
group less than 3 years should be made available at Maternity and Child care stores while Toys
for other age groups should be made available at Large format and general merchandise stores.
Also Toys for age group shall utilize the e-retailing platform.

Promotion:

Important Terms for promoting the products

The research has revealed that Safety (like absence of sharp edges), Non-toxicity are very
important for Customers. Favorably, Channaptana products are inherently safe and non-toxic.
The communication should be designed in such a way that toys are safe, non-toxic made out of
natural material – Wood (findings are also inclined towards wood material).

Crafting a story:

The success of Rwands’s ‘Peace basket’ and the Kenyan fashion accessory crafts, not
only in exports but also domestic market shall show the way for Channapatna. The promotion
should be designed in such a way that, not only products are sold, a concept should be sold For
example, A hope for better development for a child should be sold.

Creation of space through Certifications and quality standards:

Since certifications are key, as shown by the study, promotions should also highlight the
Craft mark and other certifications along with stringent quality standards product adhere to.

Use of Infleuncers

Drawing parallels from entry of oats into Indian Market, Channapatna shall also make
use of influencers like doctors and teachers whose recommendations are also one of the major
deciding factors in the purchase decision. In this case, not only Safety and Non-Toxicity but also
better associated skill development is a key to enhance the impact of influencers.

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Inclusive Tourism

International Trade centre, promotes Inclusive tourism concept as it facilitates

exploitation of tourism to the maximum for good. With the help of state tourism board,
Channapatna can make use of tourist places as their avenue to promote awareness and boost
sales.

Change in positioning

The promotions should be directed in such a way it moves the Channapatna toys to high
perceived value and high price quadrant of the position map with variables, Price and Perceived
valued.

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 28.Other Recommendations to assist Marketing Efforts

Creation of Co-operatives

Success of Kanchivaram silks in Indian and Export market should partly be owed to
presence of co-operative societies of Artisans and their collective efforts. Artisans at
Channapatna along with major players, can come together to form co-operative society. By
creation of co-operatives, the bargaining power of the artisan increases, thus they can ask for
enhanced support, promotional activities, stringent anti-dumping laws from the governments and
protect their interest.

Also they can create their own retail spaces which also serves as experience centres for
customers to watch live. The major advantages a co-operative society will lead to is Market
planning, Product development, collective promotion and access to technological support.

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 A Hundred Hands Artist Member’s Profile 2014-2015, p71-88, visited on 28th December
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 Michael Patrao, Channapatna's woodcraft to get new sheen, May 7, 2013, Deccan Herald,
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http://www.deccanherald.com/content/330698/channapatna039s-woodcraft-get-sheen.html

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 Das, Goutam, Toy Story, Business Today. 1/19/2014, Vol. 23 Issue 1, p110-111, Ebsco, ,
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