If you want to make money while also exercising your creative and design muscles, starting a business making and selling soft toys is a fantastic option. The perfect advertising campaign might catapult this company to overnight success.
Possible Expansion
The market for stuffed animals has tremendous expansion potential. The rising number of children and young adults in India has boosted the market for stuffed toys. In addition, expanding your business’s reach and popularity has never been simpler than with the help of the internet and social media.
Why this business
Several factors make it an excellent idea to launch a business producing and selling plush toys. To begin with, it’s a home-based venture that requires nothing in the way of initial capital.
Second, it’s simple and straightforward to learn how to make the product. Finally, there is a significant market for stuffed toys, which represents a promising commercial prospect.
Legal requirements
It is crucial to be aware of the laws governing the sale of soft toys in India before beginning operations. In order to legally operate,
1. Business PAN Card for Company Registration or Proprietorship Registration
2. GST registration if the business crosses Rs. 40 lakh in turnover in a year
3. MSME license if looking forward to manufacturing
4. Trade license from the Municipality Authority.
The most important point is that if you are planning to do manufacturing, BIS certification is mandatory to sell the toys.
Needed investment capital
The size of your firm will determine how much start-up money you’ll need for a soft toy company. You’ll have to put money into things like supplies, machinery, and advertising. However, you may get started with a modest budget because this is a low-investment enterprise.
It is a low-investment business. If you are planning to start selling soft toys by buying from wholesalers, you just need a trade license and GST registration. You can start this business with Rs. 10,000.
But if you are planning to set up a manufacturing unit, you may need more money, around Rs. 50,000 to Rs. 1 lakh. This includes raw material costs, labor costs (tailor and helper), areas for manufacturing and keeping raw materials, and finished goods.
Further, you need extra money to apply for a BIS certificate, which can cost you around 50K to 1 lakh rupees. It is advised to go through the government’s circular issued on BIS certification of toys to know how you can apply for it.
Margin of profit
If you can keep your production expenses low and your marketing strong, you can make a lot of money with a soft toy business. Depending on how you set your prices and promote your product, your profit margin could be anywhere from 30% to 50%.
Suppose you make one soft toy with 100–150 rupees (this includes the cost of making it, including expenses such as labor costs, machine costs, rent, electricity usage, taxes, etc.), keep a margin of 100 per piece, and sell 500 pieces per month.
Your revenue per month is 500*250 = 1,25,000.
Your profit will be Rs. 50,000.
It is just an estimate. This profit calculation may vary depending on rent, profit margin, sales strategy, labor cost, transportation cost, distributor’s margin, and raw material cost.
Methods of Production (Manufacturing)
Producing stuffed toys is a straightforward procedure that can be learned quickly. The appropriate raw materials, such as cotton, wool, or polyester, must be chosen. First, we make a model of a soft toy in pieces like the head, legs, hands, etc.
We start by cutting the fabric to size, sewing it together, stuffing it, and finishing the seams. A sewing machine can be used to cut down on time. You can fill the cotton in the stuffed toys by hand, or you can buy a machine for it.
You can buy it from Indimart.com or click here to view the machine details.
Raw material requirements
The success of your business hinges on the high quality of your raw materials for soft toys. The durability and safety of your products for kids depend on your choice of cloth, stuffing, and thread. In this case, good stitching matters a lot.
However, it is noted that the outer surface of the Sott toys should be super smooth, for which you can use fleece, faux fur, or minky fabrics.
For inner materials, synthetic polyester or synthetic cotton can be used to fill them.
Other miscellaneous raw materials are required, such as buttons for eyes, thread, needles, sewing machines, string, labels, etc.
Sales and Marketing Strategy
A strong sales and marketing plan is essential in the soft toy industry. You can use websites and online marketplaces like Amazon and Flipkart to sell your goods. You can establish a brand through your own website and e-commerce sites.
To reach a larger audience, it is recommended to have a distributor channel to cater your product to different retail markets. You can offer a high margin to distributors to attract them.
It is advisable to do proper research on the retail market before deciding your price in the wholesale market. You may also promote them at trade events and exhibitions.
Conclusion
Anyone in India with an eye for design and an entrepreneurial spirit would do well to launch a soft toy business. The business’s potential for rapid expansion and success hinges on its ability to implement effective manufacturing and advertising procedures.
To be successful in this business, you must adhere to all applicable laws and regulations, purchase high-quality raw materials, and employ innovative methods of promotion and advertising.
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