“From Dreams to Reality: Imagimake's Rise in the Toy Industry”

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Authors: Anupam Gupta and Rinku Vatnani

Ravi Jalan and Disha Katharani are the Co-founders of Imagimake , a company dedicated to creating engaging and creative experiences for children aged 3 to 12. With a strong background in business strategy and marketing, Ravi and Disha have shaped Imagimake's success story, focusing on toys and games that promote child development through curiosity, creativity, and play.

Ravi brings extensive expertise in business strategy, retail, and operational efficiency to the table. He holds a Post Graduate Diploma in Industrial Management from the Indian Institute of Management Mumbai and has worked with renowned organizations like Ernst & Young Global Consulting Services and Future Group India .

Disha, on the other hand, holds an MBA in Marketing from the Indian School of Business and a Bachelor's degree in Engineering & Mathematics from Swarthmore College . She is recognized for her creative approach to brand activation and has garnered endorsements for her marketing skills. Both Ravi and Disha are passionate about fostering creativity and learning in children, and their commitment to Imagimake's mission has made them valuable contributors to the realm of STEM learning and child development.

A Production Engineer And An Advocate For Child Development, Sparking The Entrepreneurial Flame That Birthed Imagimake...

Could you both share a bit about your backgrounds and how Imagimake came into existence?

I'm excited to discuss our journey. To provide some background about myself, I completed my engineering at IT Machanarachi and graduated as a production engineer in 2003. After that, I joined IIM Mumbai and graduated in 2005. I spent the next five years working for a consulting firm in the consumer products, retail, and healthcare sectors, which provided me with invaluable experience. Consulting allowed me to structure my thoughts and ideas effectively. During that time, I had the opportunity to work with diverse clients, including Future Group and Unilever, on various assignments like cost reduction and process improvement.

Following that, I took on the role of managing operations for Future Value Retail's Big Bazaar stores in the West Zone. It was a significant shift in perspective, as I had moved from consulting to a hands-on operational role in the retail sector.

During this time, Disha and I crossed paths, as she was also a part of the Ernst & Young (EY) team. We started discussing entrepreneurship and exploring potential business ideas. Disha had already begun working on the early stages of Imagimake, which prompted me to consider a more hands-on role in business.

Disha: To give you some insight into my background, I've had a long-standing interest in child development and education. During my school and college years, I volunteered for Pratham, an NGO focused on the education of underprivileged children in India. This experience opened my eyes to the impact of activity-based teaching and play-based learning, especially when working with children from under-resourced communities.

I also grew up in a family that valued play and saw how it could bring families together and aid in a child's growth and development. These experiences ignited my passion for play and learning.

It was during my time at ISB that I started seriously considering entrepreneurship, influenced in part by Ravi's passion for it. We often discussed potential business ideas. That's when the early concept of Imagimake began to take shape. We initially started with activity centers in Mumbai, where we sold products and offered a space for children to explore those products through activities. This allowed us to connect with consumers, understand their preferences, and generate ideas for our own products. We began creating our activities and received a fantastic response from parents and children who wanted to continue playing at home. This marked the beginning of Imagimake's product business

Imagimake's Growth: Activity Centers To A Global Footprint, 25,000 Sq Ft Facility, 170-Strong Team...

Could you please tell us how Imagimake has evolved and grown since its inception, and could you provide some insights into how large Imagimake is today?

Disha: Certainly, Imagimake's journey has seen significant evolution and growth over the years. We initially started as an activity center, offering both products and hands-on experiences for children. However, we soon realized that managing both a service-based and product-based business concurrently posed challenges. To streamline our efforts, we decided to focus primarily on the product side around 2014, gradually winding down the activity centers.

As we shifted our focus, we began developing a more extensive product portfolio, refining our understanding of the retail landscape. At that time, e-commerce was still emerging, so we primarily concentrated on the offline market, working to understand the dynamics of distribution and marketing.

The years have brought numerous changes. We've expanded our product range, improved our unit economics, and adapted to shifting consumer preferences. We initially concentrated on specific markets, such as Mumbai and Pune, before expanding further.

Ravi: By 2015, we gained confidence and expanded our reach. Today, Imagimake has witnessed remarkable growth, with monthly sales approaching the 100,000-unit mark. We operate from a 25,000-square-foot facility with 170 employees, serving both offline and online markets. Our products are available in approximately 5,000 retail outlets through 200 distributors.

Internationally, we've made headway, especially in the United States, with strong online and offline presence. We collaborate with major chain stores like Joanne and have distributors in Europe and Asia, enabling us to cater to local markets effectively.

Navigating The 100 Billion-Dollar Global Toy Market, Imagimake Thrives On Indoor STEAM-Based Learning...

Ravi, since you mentioned international markets, could you also shed some light on the toy market's size, both in India and globally? Are there specific segments within the market that Imagimake focuses on?

Ravi: Certainly, the global toy and games market is substantial, exceeding a hundred billion dollars. It can be broadly categorized into indoor and outdoor segments. Imagimake primarily operates within the indoor segment, which encompasses products like board games, puzzles, art and crafts, and action figures. Our focus centers on skill development, hands-on play, and active learning, often associated with STEAM (Science, Technology, Engineering, Arts and Mathematics). These categories represent approximately 25% to 30% of the overall toy market.

?In terms of regional significance, the United States is one of the largest toy markets, accounting for around $40 billion of the global market. In contrast, India's toy market is still in its nascent stages, with a size of approximately $1.3 to $1.4 billion. Per capita toy consumption in India remains relatively low, mainly due to its vast population, but this also implies substantial growth potential in the market.

One notable aspect is that the toy industry tends to grow at a faster pace in developing or developed countries compared to underdeveloped markets. Additionally, India has historically had limited domestic toy manufacturing capabilities, with China dominating more than 80% of global toy manufacturing. However, recent government interventions and policy changes have encouraged domestic toy production, contributing to the evolving landscape.

In The Fierce Toy Industry, Imagimake Stand Out With Innovation And A Focus On Value Over Price...

Disha, the toy industry is known for its competition, ranging from large players to smaller ones. How has the competitive landscape evolved since the inception of Imagimake in 2012, and how do you navigate this competitive market to establish your brand?

Disha: Indeed, competition in the toy industry is fierce, with a mix of players. For Imagimake, innovation has been our driving force. We differentiate ourselves by creating innovative, unique products with design registrations and patents. One example is our US-patented quilling machine, which simplifies a traditionally mundane craft into an engaging and efficient activity for children. This focus on innovation has set us apart.

Regarding price sensitivity, while price is always a factor, we've observed that today's Indian consumers, especially parents, prioritize value over price. They understand the importance of their child's time and engagement. If a product offers educational value and quality playtime, parents are willing to invest. Our average price point typically ranges from 500 to 800 rupees, but we've also seen success with products priced above that range, such as one of our best sellers priced at over a thousand rupees.

We target discerning parents across India who seek the best for their children, not limited to metro cities. These parents are willing to pay a slight premium for products that deliver play value and quality. Our customer reviews and ratings on platforms like Amazon, with over 25,000 reviews and an average rating of 4.2, reflect our ability to meet the needs and expectations of our customers.

While 'Make In India' Offers Promise, Challenges Remain In Building A Self-Reliant Toy Ecosystem...

The Indian government has been focusing on supporting the toy industry with initiatives like BIS requirements and the promotion of local toy manufacturing. How has this impacted your business, and do you believe there's more to be done to further the "Make in India" toy story?

Ravi: The direction the industry is moving in has both advantages and challenges. Historically, India heavily relied on toy imports, and shifting this overnight is a significant challenge. The toy industry is component-driven, and many essential components are not yet produced locally. While some manufacturers have emerged in recent years, we still lack a robust ancillary ecosystem.

The rapid changes can disrupt existing distribution systems, as distributors heavily depend on imported products. Such changes can make their business models unviable overnight. These challenges are part of the transition. However, it also presents an opportunity for us to bridge the gap and contribute to the "Make in India" story.

It requires agility and innovation from industry players to make this shift successfully. So, while the opportunity is significant, there's still much work to be done across various categories to fully realize the potential of "Make in India" in the toy industry.

Innovation Fuels Imagimake's Journey, Balancing In-House Manufacturing With Efficient Sourcing...

In the toy industry, there are challenges related to skills, technology, and raw materials. Can you elaborate on some of the major challenges you've faced during your journey with Imagimake and how you've addressed them?

Ravi: Certainly, one of the biggest challenges we encounter is the need for continuous innovation. We operate like a content company, constantly striving to release new products that resonate with our audience. Our team plays a crucial role in this process, from design to testing and product launch.

Another significant challenge is maintaining a robust supply chain to meet both Indian and international market regulations. Initially, this was a steep learning curve, but over time, we've developed our supply chain to align with these requirements.

Regarding our manufacturing factory, we've focused on cost-efficient product launches. While many of our components are sourced from third parties, we've set up our factory to handle final assembly, quality control, and dispatch. This approach allows us to maintain small MOQs while meeting our high-quality expectations.

As we continue to grow, we are exploring opportunities to introduce more automation and technology into our processes, primarily aimed at enhancing efficiency. However, this transition is gradual and driven by the goal of improving operations rather than rapid technological adoption.

The Chandrayaan Mission Set: A Success Story Of Relevant, Engaging, And Affordable Education...

Disha, could you share a success story of one of your best-selling toys or an instance where Imagimake products made a significant impact on a child's development?

Disha: Certainly! One of our impactful success stories is related to our Chandrayaan Mission Set. We collaborated with the Indian Space Research Organization (ISRO) to create a playset that celebrates their achievements. Initially, we found that many children in India were more aware of NASA than ISRO, which we wanted to change.

The set includes DIY models of a GSLV rocket, the Chandrayaan orbiter, lander, and rover, all designed to be realistic and engaging. This initiative has connected beautifully with our audience. The marketing team did an excellent job in product placement, and we received positive responses from various outlets, partners, and even celebrities.

The Chandrayaan set has been used in schools for educational purposes and has also become part of festivals like Ganpati decoration. It's a story of creating a relevant product, presenting it innovatively, and keeping it affordable for a wide audience. We've seen a significant shift where children now talk about ISRO, and it's been a fantastic journey.

Trends Shaping Toys: Characters, Sustainability, Tech Integration, And Real-World Realism...

Are there any emerging trends in the toy industry that are currently influencing it or could potentially disrupt it in the future?

Disha: Certainly, there are several trends shaping the toy industry. Character-driven toys, such as those based on popular characters like Paw Patrol, Barbie, and Avengers, continue to be significant. Additionally, there are general themes like unicorns that hold universal appeal, especially among young girls. Another trend involves technology integration into toys, although this area requires further exploration to find the winning formula. Overall, toys offering novelty are in demand, as they capture attention in an era of reduced attention spans.

Ravi: Sustainability is a notable trend, particularly in international markets, where consumers are increasingly drawn to sustainable products and supply chains. Regarding character-driven toys in the Indian context, while there have been characters like Chhota Bheem and Hanuman gaining popularity, the Indian character-driven toy market is still evolving. Additionally, there is a trend towards incorporating more realistic elements from the real world into toys.

For Young Entrepreneurs: Dream Big, Stay Patient, And Master Your Business Economics...

Given your extensive experience in the industry and your journey as entrepreneurs spanning over 12 years, what advice would you offer to aspiring young entrepreneurs looking to venture into either this industry or the broader Indian startup landscape?

Disha: I'll go first. One piece of advice I often hear from Ravi is to dream big. To that, I'd add the importance of patience. While having ambitious dreams is essential, it's equally crucial to maintain patience and resilience. Understand that things might not always progress as quickly or in the way you imagine. Every day presents new challenges and surprises, so stay patient, keep smiling, and show up consistently. If you believe in what you're doing and it adds value to the world, eventually, it will all fall into place.

Ravi: I'll keep it brief. In addition to what Disha mentioned, have a deep understanding of your business economics and align your actions with your vision. It's easy to get distracted by external noise, but clarity on these aspects will make your journey smoother.

The realE? moment...

Can you each share an "aha moment" or a significant moment that holds a special place in your heart from your journey, either professionally or personally?

Ravi: Certainly. One of our recent significant moments was closing our funding round with Pidilite Ventures about 10 days ago. It was a validation of what we've built so far, and having Pidilite as a partner for our future growth journey is exciting. This milestone could be a significant growth driver for us in the days to come.

Disha: On a more micro level, it's always special to see the excitement in a child's eyes when they interact with our products. Whether it's building a model, creating a quilling project, or experiencing our technology-based products, witnessing the joy, wonder, and connection that our products bring to families is incredibly rewarding. These moments of joy and learning are what make our work truly special.

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