Photo by Israel Torres on Pexels.com
A toy store business is a place or shop in the market where people can buy toys and play materials for children. In today’s time, various types of toys are made all over the world. By playing with toys, children acquire knowledge very quickly, the special thing is that toys can be used not only for entertainment but also for studying while playing. This is the reason, that today on many occasions, people of almost all income groups have started giving toys as gifts to children.
Also, every parent tries to provide all kinds of toys to their kids in childhood and they also need to go to the toy store for this. Therefore, If you too start a toy shop, you can earn a good income in this business in a very short time. in this article, we are going to tell you how you can start a toy store business and how much profit you can make every month in this business.
Table of Contents
To start this toy store business, you first need to know why you want to start this business and how much demand there is in the market. The toy industry in India is booming, with an estimated market size of ₹16,000 crores and a compound annual growth rate (CAGR) of 8 to 10%. With the increasing demand from urban and semi-urban areas, this is a great time to open a toy shop. From educational toys to electronic gadgets for children, the market scope is wide, offering opportunities for both small and large-scale businesses. In such a scenario, the toy shop business has grown a lot in the present times compared to the previous times. In clear words, the toy business is going to do well in the coming times and you can earn a lot from it.
Before diving into the business, You will have to do market research and you will also have to know which type of toys are in more demand in the market. For this, you will have to go to the toy shop already present in your city and research which types of toys are sold more in the market and which types of toys are preferred analyze their product range, pricing, and customer base. Nowadays, there is also a high demand for toys with batteries and remotes. Also, check online marketplaces like Amazon and Flipkart to identify trending toys.
If you start this business on a small scale from home or small shop, then you will have to invest only 50 thousand to 2 lakhs, and with this amount, you can open a good toy shop. If your budget is high and you can invest more money, then you can open a toy shop by investing 5 to 10 lakh rupees. With this amount, you can open a toy shop on a large scale and keep all kinds of toys in your shop. If you wish to expand online, add another ₹1 to 2 lakhs for website development and digital marketing. Plan your budget carefully and consider options like bank loans or government schemes to finance your business.
We all know that there are millions of toys in the market, so an entrepreneur running a toy store business cannot make all the toys a part of his store. Therefore, the entrepreneur must keep a list of only the toys that children want to buy. For example, focus on a mix of traditional, educational and high-tech toys, and there should be soft toys, remote control cars, regular plastic cars, battery-operated toys, baby walkers, swings, rickshaws, flying planes, plastic trains, and educational toys for children. Keep an eye on trends such as STEM tools and interactive gaming toys. By doing this, your business will be successful and you will get more customers.
Next, finding reliable suppliers is crucial to your business success. So, attend trade shows in your city or state, interact with manufacturers, and explore online directories to identify reliable sources. Apart from this, wholesale markets in cities like Delhi’s Sadar Bazaar or Mumbai’s Crawford Market are great places to start. Also, you can find toy wholesalers in online at Indiamart, Alibaba, or Tradeindia websites. After finding suppliers, build strong relationships with suppliers, negotiate the best prices, and ensure on-time deliveries. Remember that quality, new arrivels and variety are key to customer satisfaction.
Next to this, to start this business on a large scale, it is mandatory to get a license, so you will need basic licenses like shop and establishment license, GST registration and trademark for your brand. Apart from this, if you are planning to import toys, make sure that you comply with BIS regulations. If you want to do business for a long time, it is better to do such government work well in advance so that you do not face any problems in the future. Consulting a legal expert for this will make the process easier and ensure that you are fully compliant with all the laws and regulations.
Choosing the right location is very important for the success of any business. Therefore, look for high-traffic areas near shopping malls, market places or schools and residential areas for your toy store business. And only after choosing a good location, you should rent a store, and while renting the store, you should enter into a rental agreement that will use that document as the address proof of the business. A space of 300 to 500 square feet is ideal for a small store, while a large store may require 800 to 1000 square feet. Most importantly, the location should be well-lit, child-friendly, and have enough space to display the products.
In this type of business, since the main customers of the entrepreneur are children, the entrepreneur should use colourful themes, playful décor, and interactive displays to attract kids and their parents. So, invest in shelving, racks, and display counters to showcase your products effectively. Also, chairs or sofas for the customers to sit on, and one or two televisions to display new and upcoming products may be required. Apart from this, air conditioners are necessary during the summer season and for security, the entrepreneur should install CCTV cameras.
Marketing is very important for running a toy store business. First, create your own website and sell your toys online, and make it known that delivery and packing will be provided free of charge in the process. Use social media platforms to showcase your products, offer promotions, and engage with your audience. Also, distribute flyers, run ads in local newspapers, and collaborate with schools or daycare centers for events. Offering discounts during festive seasons or packaging toys in attractive packages can increase sales. Order items or products that are not available in your store and arrange for them to be delivered to customers’ homes for free. Lastly, don’t forget to collect customer feedback and reviews to build trust and loyalty.
With proper planning and execution, you can expect a profit margin of 20 to 40% in the toy business. This means that you can buy a toy for Rs 100 and sell it for Rs 150 or more. According to an estimate, you can start this business on a small scale and earn a profit of Rs 40 to 50 thousand every month. Seasonal sales during festivals and holidays can significantly increase your income. Expanding online can further increase your revenue and earnings. By keeping operational costs under control and focusing on customer satisfaction, you can build a profitable and sustainable toy store business.
How to Start Toys Manufacturing Business in Small Scale
Top 10 Best Future Business Ideas for 2025 – 2030
Top 10 Best Kiosk Business Ideas for Big Profit
Today, it is tough for everyone to get a job due to the increasing unemployment!…
The fashion industry is a multi-billion dollar industry and now this industry is growing rapidly…
Did you know the global jam market is valued at $5 billion in 2024 and…
Today 70% of India's population lives in villages, and employment has always been a problem…
Friends, as you know, weddings are significant life events and happen throughout the year. It…
Plastic Pellets are small particles produced by recycling raw materials or plastic waste. They are…