In Short:
Ace Turtle, the Toys“R”Us licensee, is enhancing its business strategy by focusing on local toy manufacturing in India due to new Bureau of Indian Standards (BIS) regulations. These rules aim to reduce cheap imports and strengthen local production, with plans to start selling locally made toys by mid-2025. The company also aims to expand from five to 50 stores in three years, boosting revenue significantly.
Revamping the Toy Industry: Ace Turtle’s Strategic Shift
Ace Turtle, the exclusive licensee of the iconic American toy retail giant Toys“R”Us, is on an exciting journey to transform its business model. With a renewed focus on local manufacturing in India, the company is gearing up to launch locally produced toys by mid-2025. This step not only aims to cater to the Indian market but also to strengthen the local economy.
Challenges and Opportunities with BIS Regulations
The introduction of the Bureau of Indian Standards (BIS) in the toy market has brought about some hurdles, particularly when it comes to supply issues. As Nitin Chhabra, Founder and CEO of Ace Turtle, mentioned, the tough regulations have made it more difficult to import toys from China. The government’s decision to hike the basic customs duty on toys from 20% to a staggering 60%—and eventually to 70% in March 2023—was primarily aimed at shielding domestic manufacturers.
However, Chhabra emphasizes that these very regulations have opened up new avenues for toy companies. He states, “The BIS standard regulation has acted as an enabler by eliminating cheap imports and reducing the grey market to almost negligible levels. As a result, we can now access better-quality products.”
Focus on Local Manufacturing
With this newfound focus on quality, Ace Turtle is looking to ramp up its local manufacturing capabilities by partnering with contract manufacturers. Chhabra shares, “We are currently evaluating factories and discussing next steps. Our goal is to finalize these plans by the end of this year, with production expected to begin 3 to 4 months thereafter.” This initiative not only supports local industries but also aims to boost the marketplace with high-quality toys.
Optimizing Prices for Customers
Local manufacturing also presents the advantage of optimizing pricing strategies. Chhabra highlighted, “By localizing production, we can significantly reduce import costs, offer more competitive prices to our customers, and improve access to high-quality Toys“R” Us products across the country.” This is great news for toy lovers and parents looking for quality products.
Expansion Plans on the Horizon
Currently, Ace Turtle runs five retail stores and has ambitious plans to open seven more within the next six months, targeting a new store opening every five to six weeks. Looking further ahead, Chhabra has set an impressive long-term goal of reaching 50 stores within the next three years. Notably, the brand has also recorded a remarkable 245% increase in topline revenue in 2024 compared to the previous year.
The future looks bright for Ace Turtle as they navigate the challenges in the toy industry, focusing on quality, local partnerships, and an expansive retail presence.
