Hamleys allows Reliance Retail to compete with global giants in premium toy segment in India, says GlobalData
May 15, 2019

Hamleys allows Reliance Retail to compete with global giants in premium toy segment in India, says GlobalData

Following the news that Reliance Brands, a subsidiary of India-based Reliance Industries, has agreed to acquire 100% stake in 259-year-old British toy retailer Hamleys from Hong Kong-listed C.Banner International for US$88.5m,

Priyanshu Rana, Consumer Analyst at GlobalData, a leading data and analytics company, offers his view: 

“Hamleys, which operates 167 toy stores across 18 countries, has been facing headwinds due to the impending Brexit and economic slowdown in the UK. For the year to 31 December 2017, the iconic toy store chain reported a revenue drop of 2.5% to £66.3m due to macroeconomic factors and store closures.

“Reliance Retail, on the other hand, was looking for an opportunity to emerge as a dominant player in the global toy retail industry. Already, it has a pan-India franchise agreement to operate 88 Hamleys stores across 29 cities. The deal will now give the Indian acquirer full control of those outlets. Reliance Retail can leverage its supply chain management and distribution network to expand Hamleys’ business in India.

“One of the most apparent benefits of this deal for Reliance Retail is to compete with other global e-commerce giants such as Amazon and Walmart, whose operations were hit massively after the introduction of a new e-commerce policy in India. As a result, this is the right time for the domestic major to dominate the retail scene. Organized toys market in India is growing at around 15% riding on growing income of Indian middle class, and Hamleys has already set a premium image in the mind of consumers particularly due to its store formats and presence in airports.

“The deal will also help Reliance to reduce dependency on its petrochemicals and energy segments, and diversify revenue streams at a time when global oil prices are experiencing volatility. Even if Reliance Retail could not capitalize on the global footprint of Hamleys, the burgeoning Indian toy market will give a crucial opportunity for Reliance Retail to make its presence felt in the premium toy segment.”

 

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Daniel Pickett
Daniel “Julius Marx” Pickett has been around toys his whole life. The first line he ever collected was Mego’s World’s Greatest Super Heroes line back in the 70s. He has been surrounded by collectables ever since. In 1999 he was confounded by a lack of information and news about some of his favorite toy lines he was collecting. Since he couldn’t find the information he decided to pursue it himself thinking other people might also be interested in the same news. He started writing a weekly column on the toy industry and action figure for a toy news site and in a years time he tripled the sites daily traffic with his updates, reviews and product features. He built relationships with every major toy manufacturer and many sculptors, painters and mold makers. He grew his hobby into a world wide expertise that the industry has embraced. In 2004 he teamed up with his toy buddy Jason “ToyOtter” Geyer and they created their own website www.ActionFigureInsider.com. Daniel has been quoted in both industry and mass media press outlets. Over the years Daniel and AFi have been sought out as experts in the field. Daniel was regularly featured on “Attack of the Show” on the G4 network as the primary contributor to their “Mint On Card” segment, and our front page has been linked to from USA Today’s “Pop Candy” Blog twice. Daniel’s content has also been featured on MSNBC.com, Time.com, The Wall Street Journal, The Saturday Evening Post, CNN.com, AssociatedPress.com Wired.com, Fark.com, Boing-Boing, Gizmodo.com, Ain’t It Cool News, the Official Star Wars blog, Geekologie, G4, CNet and Toy Fare magazine, among many others. He has consulted on toy lines, books, documentaries and TV shows. But all of that really just sounds snooty and “tootin’ his own horn” – the long and short of it is that Daniel loves toys and he LOVES talking about them.
Read other articles by Daniel Pickett.

 

 

 

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