CNE to expand toy range, goes in for new business model

NEW DELHI :In a bid to grab a bigger share of the toy market, Cartoon Network Enterprises India (CNE), the licensing & merchandising arm of Turner International, is looking at new licensing models and expansion of its toy range. CNE currently holds about 10% market share in the organised toy market which is largely dominated by biggies such as Mattel and Funskool. The Indian toy market is estimated at Rs 600 crore.

CNE India executive director (South Asia & India ) Jiggy George said, “Even though we are not a toy manufacturer, we have managed to sell about 1.2 million toys in 2007 under Pogo and Cartoon Network brands. We launched 45 stop keeping units (SKU) in different categories.” In comparison, Mattel is believed to have launched about 50 SKUs while Funskool has launched about 60 new launches.

In India, CNE licenses out its characters to toy makers and gets a royalty fee. Industry sources believe that royalty amounts to about 15% of total revenues from the sale of toys. “In India, Cartoon Network Enterprises spends and invests in marketing, which is unlike the traditional business model.

In the traditional model, we just licence our characters to the manufactures and leave the distribution, manufacturing and marketing with the partners. Now, we are looking at devising new innovative licensing model to increase our revenue share,” he said.