Online fashion retailer Myntra has launched a new business of toys, in association with Primarc pecan Retail. Primarc Pecan will be Myntra’s exclusive partner in this business and will help them with the products to be sold through Myntra’s online retail store. Primarc brings its experience in having helped Amazon build its business in the consumer products segment, including toys, personal care products and the like.
Myntra’s decision to enter the toys segment may be the outcome of some of the projections appearing in recent times about the prospects in this segment. The first focus is on the demographic dividend; 20% of the Indian population of close to 1.3 billion falls within the 1 to 12 years age group. That is as huge as it can get as a market.
The Indian government has taken a tough stand on allowing import of Chinese toys following several complaints on the use of hazardous paints and chemicals in them. And lastly the current supply of toys in the Indian market or at least two-thirds of it is manufactured in the unorganized sector and not really pass the quality test.
These factors along with the growing potential for online retailing must have spurred Myntra on to sign this deal. Once Primarc Pecan helps Myntra with products from its own stable and the business grows, Myntra will be free to launch its own brand of toys and get them manufactured.
Interestingly Jabong.com has also announced a similar venture with a tie-up with the UK toy brand Hamleys.
Primarc Pecan Retial itself is looking for dramatic growth of its business in India offering its end-to-end ecommerce solutions to online retailers.