Nat Southworth to leave Hornby

[The Stationmaster]

No doubt this will be a difficult hire and much will depend on whether Hornby wants 'domain experts' (for each brand, including railways, motor sports, military history, etc) with a marketing background or someone similar to the job Nat was expected to do - someone focused purely on marketing and expected to cover all of Hornby's brands without necessarily having a deep experience in any of them.

 

At the end of the day this job is very much about what the executive team believe it's role and responsibilities should be.

 

Are we assuming he will be replaced?  (Andy's post is duly noted)  

 

I must admit my reading (probably between the lines) of the latest restructuring and changes following the financial situation in the company earlier this year was that he would be on his way before too long in any event in view of his association with some of the blind alleys the company have explored in recent years (e.g the Olympics) instead of concentrating on the newly re-identfied core.  So I suspect that in reality any 'need' for his job ceases to exist in its present form as part of the slimming down and concentrating on existing brands and that the management tier above them will be working in a different way (which makes sense to me, if no one else, when costs have to be cutback).

[jjb1970]

Something that we tend to lose sight of here is that the model railway sector has had a very troubled few years in Europe too (yes, we are European but y'all know what I mean). Marklin, Fleischmann and Roco, LGB, HAG have all been through some torrid times. Lima/Rivarossi went defunct and were bought out by Hornby. The list is not exhaustive. Looking at the US market it seems that some of the established suppliers have had some rough times too.

Europe and America have seen the same trend as we are in that there are new small suppliers without the overheads and baggage of older traditional manufacturers and with flexibility and a tight leadership making smaller runs. These smaller companies have a much closer link to their customers in some ways, probably because of the nature of their ownership.

Which leaves Hornby with a bit of a dilemma I think. Do they pretend that the clock is still in 2005 and try and get back to their glory days? Do they try and slim down and get closer to the lean, mean model of some of the new entrants? I suspect that'd be extremely difficult for them. The market is very price sensitive and the uncertainty created by Brexit and plummeting value of sterling will only have made the existing issues with price inflation worse. Which is a long way of saying I really don't envy the people in charge at Hornby. Yes, an awful lot of their problems were self inflicted wounds, but some of them are symptoms of larger trends and changes in the market I think.

[Ian J.]

Hornby could do a lot worse than separate their major market segments into discreet organisations, even if only at the accounting level. The high detail modeller; the mid range generalist; and the mass 'toy' sector. At least then they'd have a better idea of viability of known markets, and be able to price accordingly. Also, if any spin-offs were required, it would be much easier to do than with it all mixed up in one system.

[Ozexpatriate]

Hornby could do a lot worse than separate their major market segments into discreet organisations, even if only at the accounting level. The high detail modeller; the mid range generalist; and the mass 'toy' sector. At least then they'd have a better idea of viability of known markets, and be able to price accordingly. Also, if any spin-offs were required, it would be much easier to do than with it all mixed up in one system.

Assuming a correlation between individual products and one of those buckets they would have this data already.  They will know what their sales look like by part number.

 

It's not possible for them to know whether someone who purchases a model train is a 'high detail modeller" or a "mass 'toy'" person.

 

The first level of market segmentation that Hornby PLC cares about is by brand - railways, slot cars, plastic aircraft kits, die cast vehicles, etc.

[Legend]

Basic systems will capture level of sales at "R" number for Hornby and whatever product code for other items ie Airfix etc , you should be able to group these into sectors eh Trainset , Railroad etc . All you need to do is drop it down to Excel and do some trend analysis . So even though it's not easy to discern markets from their accounts they will certainly have that information,

[jjb1970]

Once the Hornby ERP system settles in then that should help hugely as provided it is well set up it should give them visibility over all aspects of the business. The package I’m used to is SAP and it is amazing just what these packages are capable of. I know we keep saying it but it is good to remember that Hornby plc is not Hornby trains, it is Hornby trains, Hornby international trains, Airfix, Humbrol, Scalextix, Pocher and Corgi. With the exception of Pocher which is a rather specialised niche product these are all major brands in the context of the model/hobby sector (remember, we’re not talking about the mobile devices or automotive sectors). Hornby international is itself sub-divided into Arnold, Rivarossi, Lima and Electrotren. I’m not sure that outside of Hornby anybody really knows the relative contributions of profit and loss made by each component. For all we know OO trains may be carrying the business, it is also possible that they’re a financial lemon relative to slot cars or diecasts.

Whilst I think that there are changes in the hobby and that the newer style of small flexible producer has many advantages, I also think that it is companies like Hornby and Bachmann (or in Europe, Roco, Fleischmann, Marklin etc) that give the hobby a critical mass that facilitates the activities of niche producers. Which is why I think that no matter what people think of blue boxes, red boxes and such like, if we want a viable long term future for RTR models then the existence of such companies is important.

[Porcy Mane]

Time for a new start . Where's my CV

 I look forward to the announcement from Hornby of your appointment and along with your appointment, Hornby's exponentially upward spiraling balance sheet accompanied by the introduction of supremely detailed models from everyones wish lists, available at only 22s/6d from an ever expanding network of deliriously happy independent retailers.

 

Meanwhile back in the real world, the future is bright, the future is legend.

 

P

[Legend]

What 22/6 you've lost sense of reality man!

[Porcy Mane]

What 22/6 you've lost sense of reality man!

Absolutely no doubt about that;

but it was you who exhorted, "A return to a good old fashioned catalogue appealing to the nostalgia market would be good".

If that meas a return to 4 colour print catalogue with artists impressions of never to be introduced "Available Later" models, then no thanks.   

 

P

Maybe I should have said, "112½p"

[Pint of Adnams]

With our new prime minister's clearly different approach to China (see Hinckley 'whatsthe' Point?), the trading independence potentially being created by Brexit, the ever-rising costs of Chinese production and the change in emphasis to developing a technically-skilled domestic workforce and hence manufacturing capability, how long might it be before a company such as Hornby seriously considers returning manufacturing to the UK?

 

The potential 'fallout' (pun intended) from a decision to not involve the Chinese in our domestic power generation or possibly other security-sensitive spaces could include retaliatory disruption to manufacturing, shipping or even trade embargos by the Chinese.

 

It appears that all production runs are now in lower volumes and hence leveraging the low-cost/flexibility in production advantages of the smaller more recent entrants to the R-T-R market may be considered attractive by a different thinking board and management.

 

I would submit that the last thing Hornby needs is to become part of a larger organisation when it could be leaner, smarter and more responsive.

[t-b-g]

With all this business expertise available, surely the answer is for Hornby to "head hunt" a few RMWebbers and all its problems will be solved overnight.

[Ian Hargrave]

With all this business expertise available, surely the answer is for Hornby to "head hunt" a few RMWebbers and all its problems will be solved overnight.

Question is......do they come complete with torso and a set of limbs ?

[Legend]

Absolutely no doubt about that;

but it was you who exhorted, "A return to a good old fashioned catalogue appealing to the nostalgia market would be good".

Tri-angPriceList-1959.jpg

If that meas a return to 4 colour print catalogue with artists impressions of never to be introduced "Available Later" models, then no thanks.   

 

P

Maybe I should have said, "112½p"

Lol fair enough. I was thinking maybe of the 73 74 or 80 catalogues which for me were inspirational rather than just a load of side on images .

[Bernard Lamb]

Question is......do they come complete with torso and a set of limbs ?

If they had as many limbs as Kali I am sure that they could not assemble models cheaply enough to satisfy some folks on here.

Bernard

[Legend]

It's not cheap that counts it's value. If you look at something like the Hornby Collets or L&SWR stock at £40 ( £36 discounted) they are not cheap but can be seen as value. Compare that with some of the prices being charged by Bachmann for coaches and wagons.........

 

Anyway back on track, I'm not sure exactly what the title of the role would be but I do think Hornby need someone with market knowledge to maximise their earning potential in the next few years. Not just new introductions but maximising the revenue earning potential of their existing models, where the major money has already been spent on tooling. Just a couple of examples: Blue &Grey Mk1s , a single chimney late crest Collett tendered Castle

[phil gollin]

............ but I do think Hornby need someone with market knowledge to maximise their earning potential in the next few years. Not just new introductions but maximising the revenue earning potential of their existing models, where the major money has already been spent on tooling. Just a couple of examples: Blue &Grey Mk1s , a single chimney late crest Collett tendered Castle

.

 

Yes, like the Hornby Maunsell Coaches (low windows variant) in BR Southern Region green (only done in a coach set so far).

 

.

[Ian J.]

.

 

Yes, like the Hornby Maunsell Coaches (low windows variant) in BR Southern Region green (only done in a coach set so far).

 

.

 

Do you mean the S&DJR set? There is demand for a re-run of that and it's not happened to date. So there does seem to be some element of poor marksmanship for what seem to be obvious sales potential.

 

"Still, 'old friend'! You've managed to kill just about everyone else, but like a poor marksman, you keep missing the target!" Kirk, ST:TWOK

[The Stationmaster]

It's not cheap that counts it's value. If you look at something like the Hornby Collets or L&SWR stock at £40 ( £36 discounted) they are not cheap but can be seen as value. Compare that with some of the prices being charged by Bachmann for coaches and wagons.........

 

Anyway back on track, I'm not sure exactly what the title of the role would be but I do think Hornby need someone with market knowledge to maximise their earning potential in the next few years. Not just new introductions but maximising the revenue earning potential of their existing models, where the major money has already been spent on tooling. Just a couple of examples: Blue &Grey Mk1s , a single chimney late crest Collett tendered Castle

 

That really boils down to a specialised brand/product manager for the model railway part of the business as i see it.  And haven't they already got one?

 

Of course the key to real success in such a role is knowing the market together with an ability to deliver product t reasonable cost alongside new models.  Thus the Collett tender 'Castle' is an excellent example in my view of how to do something for minimal investment that is likely to sell as it fills in a gap.  But alas one swallow does not make a summer so there would need to be a string of similar stories to keep the pot market boiling rather than just simmering along.  Oddly I think the Peckett will do that for them but not as a big earner alas and the coaching stock area - as you mentioned - could also deliver but there needs to be more I think, and over an extended period. 

[dibber25]

It's not cheap that counts it's value. If you look at something like the Hornby Collets or L&SWR stock at £40 ( £36 discounted) they are not cheap but can be seen as value. Compare that with some of the prices being charged by Bachmann for coaches and wagons.........

 

Anyway back on track, I'm not sure exactly what the title of the role would be but I do think Hornby need someone with market knowledge to maximise their earning potential in the next few years. Not just new introductions but maximising the revenue earning potential of their existing models, where the major money has already been spent on tooling. Just a couple of examples: Blue &Grey Mk1s , a single chimney late crest Collett tendered Castle

Hornby outlet store at Swindon last week - Railroad Mk1 coaches.............£40 each. (CJL)

[rockershovel]

Re various posts on here...

 

1) we haven't yet left the EU, nor have we invoked Article 50. I for one, wouldn't be particularly surprised if we never do, but end up in a somewhat different relationship to an organisation which changes considerably in the next two or three years. We may have voted OUT but that isn't the half if it; Conservative Party upheavals and economic "corrections" tend to go together, as in 1992 and 1997

 

2) China isn't the be-all and end-all of manufacturing offshore. Harley Davidson are building their new model (the GX "Street") in India. Triumph are building some models in Thailand, having looked into China and decided against it. Dyson didn't offshore to China, either.

[Legend]

Hornby outlet store at Swindon last week - Railroad Mk1 coaches.............£40 each. (CJL)

[Legend]

So just about matching the Bachmann price. But you'd be mad to buy them there when you can get them in Hattons for less than £20 .

[jjb1970]

One of the answers to rising prices is certainly to shop around and look for bargains.

 

Something I've noticed lately is that the old truism about UK OO being cheaper than HO is not really true. A few months ago, one of my responses to OO price increases was to take a look at my old passion for HO brass models and I reverted to that hobby picking up some lovely pieces like a lovely Wisconsin Central SDL39 and a Conrail SD70MAC (ummm....nice). After that I started getting itchy feet about German and Swiss HO again, an old passion of mine and I was pleasantly surprised when I looked at the prices of Fleischmann, Trix, Roco etc HO. Even the high end ESU models which are made to showcase digital functionality and are metal and detailed to a very high standard are not that much more than sound fitted OO modern image. Diesels, electrics and coaches can actually be cheaper. Steamers do tend to be a lot more expensive in HO but then they have a lot more external pipework and details which adds to the cost. And despite the pound falling off a cliff, this comment holds up even if looking at shops in Europe now (perhaps because the Euro isn't exactly setting the world on fire either). So the idea that the UK is a bargain basement island on the edge of a premium priced HO Europe is not true. I have been looking at ordering some DB Ep.IV Rheingold coach sets which are to be made (thanks to Dutch Master for the heads up on those!) and despite the fact that LS models are very good and not HO Railroad level (quite the opposite) they're no more expensive than I'd expect from Bachmann today although still more than Hornby.

 

This isn't intended to have a go at manufacturers for high prices, just an observation and also perhaps an example of one way to deal with price rises. If people really do think OO prices are going beyond what they want to pay for the stuff then there is a whole world of model railways out there, and its maybe not as expensive as you might think.

[autocoach]

This topic appears to have gone south with Mr. Southworth....

[Dunsignalling]

This topic appears to have gone south with Mr. Southworth....

Disappeared up its own you know what - most do eventually - time for me to activate the "Ignore This Topic" button.