How to Open a Toy Store Business in India

There is nothing like a toy that can bring a smile on child’s face. Be it a child’s birthday or any occasion, a toy can always be the best gift. Setting up a toy store anywhere can be really profitable. Why? Because there are children everywhere. If you want to earn a good deal of money and also want to see really happy faces, this is the right place. We are here to guide you through all the steps in setting up a toy store in India and toy store business plan.


Choose a Cute Brand Name for Your Toy Shop Business

Toy Store

A brand name is what you need to choose first. It must be cute and cool. Choosing any name can be one hell of a hectic process. Whenever we think of a name, thousands of gibberish names bloom up instantly in our head. The best you can do is take a pen and a sheet and write down whatever comes to your mind. Now, combine two or three words and dig up a good one. Choose a cool font style and if possible put graphic details in the name.


Research the Toy Industry and Your Competitors

The toy industry is a fast changing one. They come up with new designs and new toys almost every day. We all know how a toy gets out of fashion if a newer version of it is available. So you need to be very careful in the research, check out what the kids demand. Make a data sheet and research what kids of all ages want the most. One of the best ways to do this is working in a toy shop for a few months. You can gather experience not only about the demands but also on marketing, financing, and management. You can never grow your business if you have no idea what your rivals are doing. You can get a clue of it by working in those shops or asking them directly.


Business Registration License

Talk with a legal consultant about the permits needed to open the toy shop. Generally, shop & establishment license would be required for your shop. Also, you might require a proper authorization of brands that you are promoting and selling is a must. Still, if there is any special permit is needed leave no stones un-turned to gather those. You must start a neat and clean business. Failing to do so might land you in deep trouble.


Finding Toy Supplier

If you have been working previously in a toy shop, then the necessary contacts can easily be obtained. Else you can surf the internet, put the brand names and a whole list of distributor will come up instantly. Call them and ask their rates and what products they sell. It will provide you with the idea of how much money you need for the startup.


Finding out a Niche Market

There are millions of toys in the market, but there are only a few that every child craves. Find out that product, and go through the details of it. If possible find out whether those toys are available in other shops or not. If not then those products will be your target market. For example, you can sell toys especially for toddlers, these toys need to follow strict regulations, and most of the shops avoid them because of their price and permits.  You can also promote new brands, but for that, you need to be very reputed. Being a popular brands exclusive seller in your area is like finding a jackpot, as those products will only be available in your shop.


Choose a Location

Choosing a good location for your shop is one of the most important factors for the success of your business. Be strategic; explore your society, set up the location where most kids live. The best place is near schools or any children’s park or any area which is having decent footfalls. Good road facing shop in a busy area is recommended.


Equipment & Furniture List You Need

Toy Store Shelves

There must be enough space in your shop for children to jostle and run errands. They are kids after all. Avoid installing furniture with sharp edges and corners. We have made a list of possible equipment and furniture that you’ll need for this start-up.

  • Wall racks and shelves- they come in steel always, but we would prefer you to make it out of wood because it’s safe. You can also try plastic fiber shelves as they come in a variety of colors. Choose accordingly. This is where you’ll showcase your products.
  • A billing desk where you will keep your computer and billing machine.
  • Chairs of different sizes, for children and adults to sit.
  • One or two television sets, for displaying the new and upcoming products. Videos on how to use a product can also be displayed.
  • The air conditioner is also necessary for summer days.


List of Toy Products You Can Add in Your Store


Arrange the products in your shop properly. Divide your shelves into proper sections for kids of different ages. You can also color code the shelves. Paint the shelves with different colors, which will be easier to recognize.

  • Boys are all geeky and love to fill the boy’s shelves with toy cars from different brands. They are also fond of robots, video games, and lot more stuff. You can install a PlayStation in your shop and offer trials of the recent launches. Boys of every age play video games. It can also be your niche market.
  • Girls are fond of dolls and stuffed toys. You can keep a wide section of stuffed toys of all sizes.
  • For infants, I would say be very careful about what products you choose. All of them must follow safety standard.

We would suggest you to sell good and widely accepted brands only. Don’t sell anything cheap. And every toy must follow safety standards. They must not contain any toxic component, be it for an infant or a grown child. Cheap products are made from cheap components, and the paint sometimes causes allergies. It’s always better to sell good products at a bit higher price than selling cheap products at lower price.


Make Your Store Front and Interior Attractive

Toy Store Design

This can be your key to success. Let your customers get a big space to shop. Arrange everything such that everything is easily available. Give it a retail store like the look. Hang banners of the top brands that your store has. Give the interior a good paint job. Select bright contrasting colors, consult with a painter if necessary. Stick or hang posters of brand names and products on the wall. Light the shop well and illuminate every corner of the shop.


Marketing Plan

This is the most important part of running any business. For a new shop its always better to buy less stock. If the shop runs well, fill up your store room, as much as possible.

  • Organize a grand opening for your shop. Give your customers assured gifts on every billing.
  • Take orders of products that are not available in your shop and deliver them to the customer’s address for free.
  • Set discount prices for new customers.
  • Provide special combo deals on new products.
  • Make your website and sell products there, provide free gift packing and delivery.


Hire Staff

It’s really burdensome to do all the work on your own but in the end, the profit is all yours. It’s always better to distribute the work. Hire one or two staff members. The staff is easily available as many freshers are keen to apply for these jobs. You will require sales staff, inventory manager, accountant, etc. when your business grows.


Minimum Investment

The minimum investment to start a really good toy shop is about 1,50,000 to 2,50,000 INR. This is just a rough estimate of the initial expenditure. The value will vary according to the scale at which you are starting the business.



We have tried our best to furnish you with all the initial expenses in setting up a toy shop business. All the prices stated here are estimated, and the real prices will vary. Here goes the list.

  • Security deposit – 60,000 INR

This is a one-time investment and also refundable. You need to sign some legal papers with the land lord. If you have negotiating skills, you can negotiate and get this amount lowered.


  • Monthly rent of the shop – 15,000 INR

This is the amount you would be paying every month as rent. A good shop in a good area will cost you significant rent.


  • Electricity bill – 2500 INR

The cost will include power costs of running AC’s, fans, lights, computer systems & other electronic equipment.


Buying Stock- Variable

Toy Products

This is your first buy for the shop. Include all the products on heavy demands. Buy fewer quantities of the costly products. Be wise in this purchase. Don’t make too much of costly purchases; it might land you in trouble. Take orders of the costly products and deliver them for free to the customers later.


  • Buying a decent computer, printer, and billing machine- 40,000 INR

This is again a one-time investment. Everyone needs a computer now. It can help you manage the bills, data and your website. Get a decent printer to print bill. A dot-matrix printer would be enough to do the needed job.


  • Furniture – 20,000 INR

Buy good quality furniture for durability and longer life. If you want to design your shelves and get it done by a professional carpenter, it will need more money.


  • Building a website- 5,000 INR

Hire a freelancer to design your webpages. Hiring a professional might cost you more. Before handling the job to a freelancer, we would recommend you check his previous work. Make the website pages colorful and interactive.


  • Salary of the staff – 9,000 INR

We would recommend you to keep a single staff for the first few months. You can hire more once your business expands.



You are running a business & you need more customers as well as money. Don’t give discounts on all the products in greed of earning customers, neither the opposite. Put discount selectively on specific products and change according to the sale of those products. Try different deals and you might hit the ideal ratio.



ROI stands for Return on Investments.

It is the percentage of your net profit.

It can be easily calculated by this formula.

Return on Investment = (total income*-investment*)/investment*

*all the figures in INR

For the first few months, the ROI will be bit low- say about 20%-30% but later on, the score will ascend according to increasing sales rate.



Toy shop business can be a huge success. The initial periods are bound to be troublesome, but later on, it will be smooth. You need to keep track of the changing demands and new product launches. Later on, if the business runs well, you can open another shop in the city and so on.  We hope you find this guide helpful.  Do let us know your opinion via the comment box below and stay tuned to find more business ideas which can be started with low investment but will generate a good deal of profit.

Originally posted 2017-05-18 10:04:54.


3 Responses to “How to Open a Toy Store Business in India”

  1. Rohit Kumar Agrawal

    Sep 04. 2017

    It’s was so simple that would help me alot Thanx a lot

    Reply to this comment
  2. Amit kumar

    Oct 28. 2017

    I want to open a start up business of toys store in small amount of 50,000. can I go for it ?

    Reply to this comment
  3. husain shaikh

    Nov 23. 2017

    i like the idea. and inshah allah i will do my best. thanks for helping me.

    Reply to this comment

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