America has put the Indian export industry in trouble by applying 50% tariff on India, which will also see a big impact on the Indian Toy industry. America is a big export market for the toy industry, because India exports toys in more than 150 countries, but the most business is with the US.

The reason behind this is clear that the demand for toy in America is quite high. India exports $ 104 million every year to America and now the toy industry exports will see a decline of 8-10 %.

Thousands of people hover over jobs

During a conversation with ABP, Ashwini Kumar, co-founder and CEO of Smartivity, a leading company in the Indian Toy industry, said that the impact of the tariff is going to be on the functioning, but the saddest is that the danger is also hovering over the jobs of thousands of people.

According to Ashwini Kumar, the toy industry has the highest labor to make stuff toys and hendicraft toys and both the business growth and demand of both of these categories is the most in America and when the situation of doing business from there is deteriorating due to tariffs due to tariff, then the effect will be on thousands of people in the long term.

Talk industry benefits the most at this time

Ashwini Kumar’s company Smartivity has been in this toy industry for 10 years and has 35% exports, of which 80 to 85 percent is only in America. The US has a peak time for growth and business in terms of growth and business, as the most toys are sold in the US at Christmas time.

The toy industry has suffered a major setback due to the tariff just before the peak time. Ashwini Kumar told that, for this year his company has already sent a lot of goods to America. Some were in the way and some have to go now, for which work is being done, but the challenge.

The rates of toys will increase in America

He told that for the time being the strategy is that in the coming one or two weeks, we are going to increase the price of our product inside America. Overall 12 to 15 percent of the toy price is going to go up in America.

According to Ashwini Kumar, the highest peak time for the sale of toy in the US is October, November and December, as it is Christmas time and the most toy sales are in these months. In these three months, we will know the response of the customer how to increase the price. Some of our partners are also in America, when we talked to them, they say that toys in America are going to be 5 to 25 percent expensive.

20 percent less tariff in China

The US is a big export market for the toy industry, in which China does the most business, because the US has put 30% tariff on China, due to which the products coming from China are 30% tariff on them. According to Ashwini Kumar, China has 30% tariffs and we have 50%. If we have a tariff of 20% among us, then our products 20% will become expensive than China. This is going to have a lot of impact on our business.

Ashwini Kumar explained that there are many types of categories in the Indian Toy industry. In the case of export in the toy industry, the highest export stuff is of toys, such as teddy beer, handicraft toys. This is the category in which the most labor works and it is going to be threatened in the coming times.

America is the largest market for toy export

He said that the strategy that is still understood so far is that we should diversify our exports in another country as well, but it cannot be denied that America is the biggest market in terms of Toy Export. There will also be a decrease in growth to move somewhere else.

Ashwini Kumar said that her company makes the most DIY (do it your) product, in which it would have to be made by itself. Smartivity Company has also won several awards in the US for its products last year.

Now a big loss due to tariff

According to Smartivity CEO Ashwini Kumar, America is a very good market. Also for education related products and toys, due to which the growth in the toy industry and export was going well, but due to tariffs, there is now a big loss. There is a lot of demand for toys related to such education in the US and in the same category, the company was making toys and targeting the demand in America’s toy industry.

This company was exporting toys in India in America, due to which the company’s growth was very fast. Ashwini said that in the US and Europe, the category of Do It Yorself Toy is in great demand. People like to get such toys to their children. Therefore, America was a very big market for us in terms of category, but now the challenge has increased a lot. Till the tariff situation is not correct, we do not even know what we will do.

There is no way but to increase the price of the product

Will run for toy companies, it is also very high that the price of product will have to be increased in America. Apart from this, the production cost cannot be reduced. According to Ashwini Kumar, the price of toy will increase, but we cannot work for production cost.

There is no solution but to wait for a one or two months in terms of strategy. If things are not right, then we will once again work on the new strategy in October or November, how to grow America’s business in such situations.

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