1andrew1

49 minutes ago, Steamport Southport said:

One of my favourite out of the ones that had models on the front rather than a painting.

 

 

 

 

Jason

Got that one somewhere. A very different and nice cover.

This thread reminds me that they all used to be landscape format. Now, perhaps due to the magazine tie-in, they're portrait.

36 minutes ago, spamcan61 said:

Exactly, the seldom mentioned downside of the manufacturer becoming the retailer is that the manufacturer has to fund the entire production run until it's all sold, rather than spreading that risk over 100 or whatever retailers.

I think that's more an issue for the retailer who becomes a manufacturer (eg Hattons) as they only have one route to market - themselves.

In contrast, if Hornby becomes a retailer itself, it shouldn't  lose its other retail routes to market. 

On 17/01/2024 at 10:37, Talltim said:

MB Klein/ModelTrainStuff have stopped accepting orders 'pending a company reorganization.'

https://www.modeltrainstuff.com/customer-notice/

 

That's interesting and puts another complexion on things.

After the negative news generated by Warley and Hattons, good to see some positive news. 

11 hours ago, melmerby said:

Found this item from February 2022:

https://fremonttribune.com/uk-based-hattons-model-railways-looks-to-expand-with-fremont-distribution-center/article_3f5e3c71-3335-599d-911e-621f3048aff7.html

 

Also in other media.

 

Thanks for sharing. I think there's a typo about Flint being one mile from Liverpool (more like 21) but fundamentally an informative article.

I found this bit interesting. Presumably Fremont is where they're running MB Klein from now.

Quote

Davies said he's hoping to start trading around late March or April in Fremont.

"We're going to have some vacancies for a variety of positions, mostly involving handling stock," he said. "We've got our service to set up and some networking to install, and then we should be good to go."

Although he said the time difference might be a challenge, Davies said he's looking forward to meeting more Americans as Hattons begins hiring in Fremont. Interested applicants can contact him at richard@hattons.co.uk.

 

On 15/01/2024 at 20:09, Pmorgancym said:

Bearing mind they still through what I assume is pure bloody mindedness market the 66 as part of 'the main range' yet the 59 which is pretty much to the same standard is in railroad plus....

It's bizarre especially as the Class 66 gets Railroad level pricing. Maybe the new team is adhering to the status quo but will look at this in the future?

17 minutes ago, MidlandRed said:

The rise of manufacturers selling on line direct (eg Rapido, Accurascale, SLW and Hornby), over the last few years has become a phenomena even though some of these do sell via retailers. For instance, I wonder what percentage of Accurascale’s 18,000 class 37s were not direct - relatively small I’d guess and similarly with models by Hornby and Rapido. I must say I’ve tended to go direct unless not available that way (eg I ordered an Acc 31 from Hattons as they were sold out direct - I’ve now had to move that to another retailer) for the simple reason of wanting to be sure of getting one of xyz. As I said, I think this has been a fairly recent phenomena in my view but must have knocked a dent in the turnover of firms like Hattons. I know there are people on RMWeb that order via retailers to support them, if that’s possible - perhaps we should all act on that principle more often? Having said that I’ve bought virtually all my model road vehicles via Hattons and also loco models by the likes of Heljan. I’m still shocked they’re closing. 

I think that might go for the newer entrants like Accurascale and Rapido. I would expect retailers to have a higher share of orders for Hornby locomotive orders than they do of the newer entrants.

That's simply because Hornby have been around long enough to sign up deals with most retailers; the new entrants are still building up their retailer accounts. Accurascale have acknowledged this and are keen to build their retailer accounts.

Just seen this pop up for Monday evening. 

1 hour ago, The Stationmaster said:

One look at the Argos price tells you what was wrong with Playtrains - sets at the wrong price point for the market they were aimed at and the much cheaper competitiomn they were up against.    Clever idea poorly executed and overpriced.

 

I wonder how much of that stuff there is in the mountain of stock over-ordered for last year's Christmas market?

Interesting. Pricing certainly seems something the new Hornby Hobbies Management Team is paying attention to ad this came across in post-announcement interviews with the Airfix Team. I'm guessing that the range could not be produced cheaply enough to compete with the lower priced offerings so it's back to the drawing board which is a shame. 

1 hour ago, elmtree-line said:

 

One wonders how much real long term thought was put behind canning the Thomas and Friends range.  Whether down to greedy execs not wanting to pay for the licences, or something else is up for debate, but it's clearly a viable product range or Bachmann would not have been so quick to snap up the licenses and get production rolling.

It could have been greedy executives wanting to charge higher licence fees; we simply don't know. But Bachmann is a logical licence holder as it is strong in the US and UK whilst Hornby is just strong in the UK with a good European footprint.

Sometimes it's what they don't say that's important. No mention of Playtrains (aimed at 3-6-year-olds) which Simon and Montana talked about last year. Now, confirmation the range has been discontinued. 

I wonder If the old regime may have given the range longer?

https://www.world-of-railways.co.uk/news/Hornby-announces-the-end-of-playtrains/#:~:text=Hornby announces the end of Playtrains - World Of Railways

5 minutes ago, Tim Dubya said:

 

...or just cash in, people who collect not only trains but Beatles guff will love them.

Both, but sometimes the royalty rates and different distribution channel costs can eat into the profit margin.

1 hour ago, darrel said:

I also don't understand the Beatles wagons and locos. I'm a huge Beatles fan and a railway modeller. And I wouldn't touch them with a barge poll. My wife spotted them in a shop and was going to buy some for my Christmas. I had to stop her. 

But someone must be buying them otherwise they wouldn't be adding them to the range. 

I'm no fan of them for myself but I can see that Hornby might view them as a tool to get new modellers into the hobby. 

4 hours ago, James Harrison said:

 

Most of the Airfix announcements are just re-releases though; there only seem to be one or two new toolings.  In the warships range for instance, Iron Duke and Ajax both date from the 1960s.  

10 brand new moulds this year (6 x 1:72 scale, 1 x 1:48 scale 3 x QuickBuild). And confirmation that there will be some surprise releases this year too, as there were in 2022.)

Under Hornby Hobbies, Airfix is thriving and has far more newer moulds than under Humbrol's or Palitoy's ownership.

23 minutes ago, rogerzilla said:

Possibly to prevent someone making a mess of it and ruining a business with the family name attached to it.

Agreed. 

18 minutes ago, chev32 said:

Virtually no NEW stock for sale on their website for sale ATM. Where have all the myriad  of items gone that were listed a few days ago ?

Taken offline so Hattons can reprice them for the sale? 

A very sad 'end of an era' day. I used to live near Penny Lane in the mid-90s so like others today, remember their physical shop.   

Respect to Hattons' owners for having the courage to close down the business and not wait until it went to the wall. I wish the talented staff well; it must be awful for them given the fact that the company seemed to be  expanding and had invested in systems to charge EU and Australian taxes. Hopefully, good practice and experience in the UK won't be wasted and can be shared with their US sister company https://www.modeltrainstuff.com/ 

41 minutes ago, rovex said:

Less than 24 hours to go and this thread isn't even simmering. I can't recall such a level of disinterest in a product range announcement!

The announcement is on Tuesday so plenty of time for last-minute posts! ;)

That being said, with Hornby's commitment to announcements outside their traditional January window, a record number of manufacturers in the market and subjects covered, plus cost of living concerns, I can understand that modellers' interest may be less than what it was in the past.

5 minutes ago, Steamport Southport said:

 

Are model railways a thing in India though?

 

I know they like plastic kits, but I've never heard of an Indian model railway market. Cars from the likes of Tamiya seem to be the big thing over there.

 

 

Jason

I think it's small at the moment but certainly less crowded than the UK market and will only grow.

Here's a shop, the loco in its logo should be familiar https://trains4u.in/

I think this is a manufacturer https://www.thepinkengine.com/

In its last accounts, Hornby had set up a subsidiary in India. That makes sense as the Airfix kits are manufactured there. I wonder if it might be tempted to launch an Indian outline Hornby range there too? 

3 hours ago, 37114 said:

Totally agree with the principle, my only tweak would be I would have 3 rather than 4 tiers, removing your number 2) on the list. When ranging products generally the rule of 3 works well and bearing in mind the need to start with the customer need first, it could to follow your logic be:

 

1) "Hornby Intro": First Trainset aimed at the beginner/younger modeller on a tighter budget who may or may not follow the hobby through. Items will have simple features to encourage use such as basic sound/light, maximise generic items (eg 0-4-0 chassis) to leverage scale of economy Majority of end users will be 6 - 11 year olds. Readily available via modelling shops, as well a general retailer such as Argos etc to aid accessibility

 

2) "Hornby Modeller" More prototypical trains aimed at people who want to follow the Hobby and want to be able to build a home layout to a reasonable standard. The customer is looking for a model that looks accurate but may not have the full detail of the high end model eg. they expect their model of 37042 to have split headcodes but are not fussed that it doesn't have the handrails on top of the headcode boxes. The customer has a bit more money to spend but their budget is likely fixed and thus looking for bang for the buck. Likely to be teenagers who are moving on from "Hornby Intro" right up to pensioners. Lights as standard, sound fitment options available with a simple App option for Sound/interactive functionality. Mostly ranged in specialist modellers outlets with some better selling sets (eg one with Flying Scotsman) via Argos etc

 

3) "Hornby Premium" Products that will take the fight to people like Accurascale and Cavalex. High level of fidelity with models that in the right light pass as real locos and carriages. Highly configurable sound and light options with products appealing to less budget constrained collectors and modellers. Sold via modelling outlets.

 

To underpin this Hornby can look at how do you standardise where you can eg the chassis block for say an A3 loco could be used for 2 and 3 or another radical option could be to partner with the likes of Accurascale and "Outsource" premium products, combining the power of the Hornby brand with the quality of independent product/s. 

 

By focussing on the brand and providing a journey to the customer, Hornby can rebuild the brand loyalty and support the retailler giving them clear products to suit their range. I specifically haven't mentioned Hornby's website, there is a place for their web sales but it needs to be aligned price/service wise with the retaillers as part of a co-herent strategy of supporting direct to customer and trade sales.

 

That's interesting too and has logic. 

If Hornby Dublo is sufficiently profitable then there is still a case to be made for having it as a fourth range focused on collectors.

And what of Playtrains? . Is it a good attempt to get children into model railways? Or is yet another brand and system made by Hornby that makes the proposition more confusing?
 

There's also the situation of the other brands.  What's Oxford Rail's role? Is it there as a small nimble agile mover to compete with the likes of Accurascale and Rapido in the lower-run areas? Or something to be sold back to the founder in due course? And can Basset-Lowke now be retired given that the Steam Punk range did not take off?

And then there's the European brands. Does Hornby need so many? At they very least, does it need both Lima and Rivarossi in Italy? Could Rivarossi be used for all Continental models? Or is there still still strong brand value in Jouef, Electrotren, Lima and Arnold?

Lots to read and unpick here. Full report here.

I see that third party revenue for the UK business increased by 4% in the period but generated a loss before taxation of £5.0 million compared to a £2.3 million loss last year. I guess that was a lot of stock being sold off cheaply.

Interesting to see:

• "rekindling some lapsed relationships with valuable National retailers, and adding additional, sector specific, independent retailers to our portfolio."
• "We have developed some prototype entry-level priced Hornby train sets and Scalextric sets that were well received when presented to potential buyers at the New York Toy Fair at the end of September. 
• "Exceptional costs during the first half year were £0.05 million (2022: £0.2 million) and these comprised of one-off costs relating to the departure of 2 senior executives."
• "Ultimately, we will see the structure of the Group evolve from a traditional corporate hierarchy, towards a confederation of semi-autonomous, brand-focused, business units. This approach will give those at the coal face greater autonomy, accountability and capacity to obsess about the brands and how to drive growth in distinctive ways."

Quote

Operational

-     New senior team in place, including a Chief Marketing Officer (ex Lego) and a Group Sales Director (ex Mattel)

-     Launch of our first retail experience under the name The WonderWorks (www.wonderworksmargate.co.uk)

-     Continued revenue growth in the digital channel, up +30% YOY

-     Further progress made on driving price down on select products, through further supply chain diversification into India. [transfer of Airfix QuickBuild moulding from England to India] 

 

Financial

-     Group revenue of £23.8 million (2022: £22.4 million) an increase of 6% on prior year

-     Underlying Operating Group loss before tax* of £4.2 million (2022: loss of £1.5 million)

-     Statutory loss before taxation for the period of £5.1 million (2022: loss of £2.9 million)

-     Net debt £14.6 million (September 2022: Net debt £4.9 million)

 

* Stated before exceptional items, FX, share based payment and amortisation of intangibles.

35 Airfix kits currently in stock at Hobbycraft. No Hornby, Humbrol or other Hornby Hobbies brands.

https://www.hobbycraft.co.uk/search/?q=airfix

From what I've read elsewhere, Airfix has a broader distribution network than Hornby Railways and includes multiple wholesalers.

The Hobbycraft arrangement is probably a direct arrangement between Hornby and Hobbycraft. Airfix is the biggest kit brand in the UK so would doubtless be Hobbycraft's first choice, instead of Revell as present,  if the margins were right. 

4 hours ago, Legend said:

 I don't see the issue as being the location within Margate rather than Margate itself . Really something like this in London , Manchester etc is what is required , although Rates could be a crippler for city centre locations . 

Shopping centres are looking for new tenants, so this could fill a gap in major cities if the costs worked. Westwood is a cost-effective location and keeps all staff save Oxford Diecast under one roof but I agree that Margate is on a limb for 95% of the population.

1 hour ago, The Stationmaster said:

I get the impression that they could be seeing it as a sort of tester for wider application - if it makes financial sense.      The name strikes me as a clever idea but only if the reality of 'wonder' lives up to the name.  And it also (hopefully) makes a multi-seasonal attraction rather then a sort of shop with extra displays.

 

The big problem I see for it is going to be its remoteness - hardly an easy place to get to tucked away in the bottom right hand corner of England so in no way as close to ahuge market as Legoland  (or even Bachmann's possibly vaguely similar equivalent).  So will it still rely on the holiday season for a decent number of visitors although the new name could make it more attractive to potential visitors.?

I agree with you on its location being an issue. There was a plan to relocate its predecessor to Margate town centre which would have made it more accessible.