Toys ‘R’ Us now in India – via Reliance Retail – who’s next in Indian Toy market ?

Retail industry is still in its early stages in the country. Having understood the huge untapped retail market, few retail players like Reliance Retail (which runs Reliance Fresh, Reliance Digital, Reliance Footprint, Reliance iStore, dozen others …) and Future Group (which runs popular ones like Panataloons, Big Bazaar, eZone ..) are in expansion spree – opening more of its retail units and getting more foreign brands to country.

The latest brand to come to India is the world’s leading toy retailer “Toys R Us” and its Mukesh Ambani owned Reliance Retail which made it possible. “Toys R Us” runs more than 1,500 toy supermarkets across 34 countries and has annual revenues in excess of $13 billion. It also owns other brands such as “Babies R Us”, “FAO Schwarz” and “KB Toys”.

Reliance Retail tied up with “Toys R Us” only to add up brands in its existing Toy retail stores. Earlier to this, Reliance retail had already tied up with the popular British Toy maker Hamelys. The company is clearly toying with the idea of introducing more international brands to the Rs 6,000-crore Indian toy market, where unorganized players hold more than 60% share.

For the past two years, Indian retail industry was in pause mode for not much major brands entered into the country. But as the economy is back on its path, home grown retail industries are on expansion spree to get more international brands.

Under Mukesh Ambani’s clever management, Reliance Retail is well poised to tap the huge retail market going forward. The retail group clocked in over Rs. 4500 crore as revenues in the last financial year and Mukesh in his recent annual general meeting hinted on massive retail investments and making it a value creator for the Reliance Group.

I am sure, in another five years or so, most of the world’s major retail brands will have a presence in India – either through partners like Reliance Retail, Future Group, etc., or on their own. Who can ignore the massive Indian market ?