Toy industry in dire straits

Wholesale toy market in Chawkbazar in DhakaDipu Malakar

Md Rony has been selling toys in Chawkbazar for more than decade. His daily sales would total Tk 70,000 to 100,000 every day. But that decreased by Tk 5,000 to Tk 10,000 due to coronavirus outbreak in the country. This caused huge loss to Rony’s business. He cannot pay the bills, rent or wages to his shop workers with the amount he earns. He needs Tk 80,000 to Tk 100,000 monthly to cover all costs excluding family expenses.

There are almost 400 wholesale toy sellers in Chawkbazar who faced such losses. At least 30 of the sellers said, business booms during Pahela Baishakh and ahead of Eids. Last year also, due to the lockdown for Covid-19, the traders could not sell during Bangla new year as there was no festivities. After that, there was not much business on the two Eids either. This time they were hoping to do good business during Baishakh, but unexpectedly, the spike in corona in the country has led to another lockdown. As a result, the sale of toys has come down to zero. Although the Eid-ul-Fitr is around the corner, sales have not increased yet. Traders are gravely disappointed.

Meanwhile, the decline in sales in wholesale stores has had an impact on toy factories. Last Monday, this correspondent hardly found any customers at the 200 toy shops in Aftab Plaza in Chawkbazar from 1:00pm to 4:00pm in the afternoon. The vendors are almost completely idle with one or two employees. But in the previous years before corona, the traders hardly had time to catch their breath on the occasion of Eid. The shops were bustling with retailers from remote areas.

Not a single toy was sold at Sajib Enterprise in Chawkbazar till 2:00 pm Monday. The owner of the shop, Tanjid Hossain, told Prothom Alo, "It’s been days since I sold any toys. But I have to pay the shop and warehouse rent and employees' salaries every month. Then there are my family expenses. I have also taken a loan of several thousand.”

Several shops selling toys in Chawkbazar have also seen closed. Zahidul Haque, general secretary of Bangladesh Toy Merchants, Manufacturers and Importers Association (TMMEA), said this was due to no sales for months. He said, "Toy traders have suffered the most financial loss in corona times. Thousands of people in this sector have become unemployed. The income of those who are working has also decreased.”

Factories in dire condition

Even a decade ago, the toy market in the country was dominated by foreign toys. Then many local entrepreneurs opened toy factories. As a result, local toys are now dominating the market. Traders in Chawkbazar claim that at present, about 80 per cent of the toy market is occupied by local toys. But the toy factories are facing losses as they have not had any sales for a year due to corona. While large factories have survived, most small factories have stopped producing toys.

Aman Ullah, a young entrepreneur in the toy industry, told Prothom Alo, "It's been a year now. If there are no buyers for toys at the field level, where do we make and sell toys? As a result, our sales have decreased a lot. So we reduced production. I have also reduced the number of workers in the factory. Earlier, 1,400 workers worked in my factory which is reduced by 700 now.”

The wholesale traders and factory owners of Chawkbazar now demand government support in this difficult time to sustain and promote the toy industry. Many have lost their capital. No one in this sector received any stimulus. They think that the industry will go a long way if young entrepreneurs involved in making toys are financially supported.

TMMEA general secretary Zahidul Haque said, "We want the cooperation of the government to take this industry forward. Arrangements need to be made for small factories that have closed so that they can turn around again.”

* The report appeared in print and online edition or Prothom Alo and has been rewritten for English edition by Farjana Liakat