Walmart-backed Indian e-commerce giant Flipkart has announced a joint venture with Ace Turtle to bring Toys”R” Us and Babies”R” Us to its platform. The new joint venture has already secured licensing rights for Toys”R” Us and Babies”R” Us in India through a strategic arrangement with WHP Global – the controlling shareholder of Toys”R” Us.
“With this arrangement, the world's most loved and trusted toy and baby brands, Toys”R” Us and Babies”R” Us, will now be available to consumers online through sellers in India,” Flipkart said in a statement.
Toys”R” Us has been a global leader in the toy category for the past 70 years. The company has generated more than $2 billion in global retail sales annually through nearly 900 branded stores and e-commerce businesses in over 25 countries.
Flipkart plans to utilise its reach and expertise in technology and customer experiences, coupled with Ace Turtle's omni-channel technology enabling buy-online and ship from store/pick up from store, endless-aisle, and other technological innovations, it noted.
“The collective expertise of Flipkart and Ace Turtle establishes them as the partner of choice for Toys”R” Us's business growth in India. This launch will strengthen Toys”R” Us's brand presence and business, and further contribute to India's growing toy sector,” Flipkart said.
This strategic arrangement will endeavor to create new and exciting growth opportunities for local toy manufacturers/sellers in India, including MSMEs. The Walmart-owned company said its platform recorded growth of close to 100% in 2020 with consumers shopping online for their toys and baby care needs as they continue to stay indoors.
“India is one of the fastest-growing consumer markets in the world with real spending power among a rapidly growing population. We look forward to working closely with Flipkart and the Ace Turtle team to build Toys”R” Us and Babies”R” Us into the leading destination for toy and baby products in India,” Yehuda Shmidman, Chairman and CEO at WHP Global and Toys”R” Us said.
Flipkart Group Chief Executive Officer Kalyan Krishnamurthy said with the Toys”R” Us global standard of quality, Indian consumers will now have access to many toys and baby care products. “As a homegrown platform, we are constantly striving to build meaningful partnerships that are centered around the needs of our users. We are focused on ensuring that our users across India have access to a wide range of quality products made available by brands and sellers on our platform,” Flipkart Group CEO Kalyan Krishnamurthy said.
According to industry data, India's toy industry is predominantly unorganized, comprising about 4,000 small and medium enterprises. Earlier this year, the government had organized a toy fair intending to make India a global hub for the production and the sourcing of toys, in turn boosting the economic engines for the sector.