J.M.S.P.Jayasinghe

3rd year

As 2005034

Overview of the Sri Lanka wooden toys

industry

Toys

“Play things for children”

Main categories of toys in Sri Lanka.

Wooden ToysMade up of wood

Soft toysMade up of plush , fabric, stuffing material and accessories

Target market group

Children, teens and young adults

Target market

International Market

e.g. Europe and USA

Local market

Number of manufacturing Industries

More than 50 manufacturing industries

30-40 exporting Industries

e.g. Ancel, Ambegoda Handicrafts, Alma Toy

Wooden Toys

income of wooden craft items

0

100

200

300

400

500

600

700

800

2005 2006 2007

year

Rs. million

Materials of Wooden Toys

Wood

Rubber wood (treated or not treated)

Plywood

MDF

Pinus

Albezia

Mahogani

Beach wood

Paints

e.g.CIC, Vortex,

Macroshine etc

Threads

Cloths

Pins and nails

Accessories

Gums

Thinner

Under coat paints

Machineries and tools used in wooden toys industry

•Petso machine (cuts wood)

•Sand paper

•Planer

•Sander

•Router

•Leath machine

•Drills

•Compressor

•Saws

Properties of wood material

•Easy to work/carve

•Low density

•Easy to treat

•Easy to paint

•Non toxicity to children

Properties of the paints

•NON toxic paints

Top factors people consider important when buying

• Toy safety

• Educational toy

• Price

• Durability of due day

• Well designed

• Toy the child specially wanted

• The brand/ manufacturer name is well known

• The toy was unlikely to go of fashion in the near future

• A toy suitable for various age groups

Toy standards

•EN71- European Standard

•ASTM- American Standard for Testing Materials

•CPSC- consumer product safety commission

•Australian and New Zealand standards

•SGS- Sri Lanka

Strengths weakness

Opportunities Threats

Strengths in the industry

•Wooden Toy Industry market is well established and growing one.

•No need of a higher capital money

•Well educated and easily trainable work force

•Comparatively well developed infrastructure

•Less number of competitors

•World trend is eco-friendly good

•Developed countries do not take taxes from developing countries

Weaknesses in the Industry

•Non availability of the sufficient Rubber wood

•Delays in Government certification in regard to export consignments

•Insufficient assistance to market promotion

•Lack of skills in designing

•Lack of awareness of market promotion programs

•Traditional tend to buy plastic made toys

Opportunities

•Green purchasing would become an increased trend

•Increased segmentation of the target age groups

•The industry is becoming fast fashion and technology driven business

•Annual sales of seasonal toys

•Educational toys for pre schools becoming popular

•Adults buy more toys for themselves than ever before

•Figures representing police, firemen, rescue personal and vehicles can be a good selling things in tragic events and opportunities that increases patriotism

Threats in the industry

•Policies of government can be changed

•Carbon trading would take a higher position

•World toys competition can be high in the future

•Average age of cutting rubber trees can be increased with rubber price

•New rubber species with less timber

•Rubber plantations can be replaced by other commercial crops

•Dearth of rubber wood in the future due to instant disasters or diseases

Action plan

•Discourage export of rubber wood in primary form

•Ensure sufficient supply of rubber wood to SMEs

•Expedite issuing of certificates in regard to export consignment

•Assist exporters to participate at the International Trade fairs

•Assist established exporters to strengthen business contacts and potential exporters to establish new contacts

•Obtain services of experienced designers to train local designers

•In-house training of factory staff

•Build a local base of toy designers

•Conduct awareness programs for new/potential exporters on trade fair participation

•Conduct awareness programs on pricing, negotiations etc

•New loans with less interest should be introduced

•Establish vacuum pressure wood treatment plants with higher capacity.

•Giving tax relief to the toy manufactures in importing material

Discussion

•This is one of industries in Sri Lanka that can be developed.

•This will be helpful in solving the chronic unemployment problem.

•Governmental and other institutional changes should be done in order to up-lift this.

•This will be a good money spinning profession in export market.

•Economy of the country can be enhanced by increasing the production of the country.

References

Personal communication

•Mr. Shantha Fernando

(Deputy Director of project management division of Export Development board)

•Mr. Sakul Eranda

(In charge of ‘Papoose’ toy industry)

Internet Sources

www.srilankabusiness.com