Financial Woes Continue

Discuss Hornby Model Railway products and related topics here. This includes (Lima, Rivarossi, Jouef, Electrotren and Oxford Rail).
Post Reply
User avatar
luckymucklebackit
Posts: 3712
Joined: Mon Jul 18, 2011 7:05 am
Location: Eaglesham (Again)
Contact:

Financial Woes Continue

Post by luckymucklebackit »

Still a bit of a struggle for Hornby by the looks of things

https://www.telegraph.co.uk/business/20 ... ales-drop/

Hope they survive long enough to get the J36 released. :wink:

Jim
This Signature Left Intentionally Blank, but since I have written this and I intended to do it, this Signature is intentionally not blank. Paradox or What?
My layout - Gateside and Northbridge
Image
User avatar
6C
Posts: 1323
Joined: Fri Feb 15, 2008 1:45 pm
Location: Pingvollr, dans le Wirrale

Re: Financial Woes Continue

Post by 6C »

Yes - hope they limp past the money-grabbers as things do look brighter for the future.
Pete

Fetch me a bottle of your finest Chateau Bichon Frise '65 !!
Bigmet
Posts: 10172
Joined: Tue Aug 14, 2007 2:19 pm

Re: Financial Woes Continue

Post by Bigmet »

Although there is supposedly no sentiment in the City, there are clearly some people quite intent on keeping Hornby afloat, if that can be achieved. There's much that is right about the model product, and the brand is good, so justification in the hope that the management can turn this around.
User avatar
Bigglesof266
Posts: 1025
Joined: Tue Feb 10, 2009 9:59 am
Location: Australia

Re: Financial Woes Continue

Post by Bigglesof266 »

YMMV, but I think Hornby are in big trouble.

Why?

Palatable or not some sensitivities, our generation aka the "Baby Boomers" undeniably make up the bulk of the primary purchasing demographic for OO gauge British outline and thus Hornby, whether collectors, lifelong aficionados of the hobby, or recent nostalgia inspired returnees. By and large, we'll be increasingly absenting ourselves over the coming decade or two.

Now I am a Hornby high detail premium product buyer. Although a player rather than collector, I don't ever buy Railroad. Not interested.

A problem for Hornby is that they have exceeded my grudge buy maximum price point with their releases of recent years, and I suspect I am more generous than most with the exception of the must have at any price true zealot. I am certain I am not alone. I don't buy second hand, ever, regardless the preferred marketing euphemisms pf this era to disguise that 'provenance'. e.g. pre-loved (vomit) & its slightly less offensive synonym, pre-owned.

The tell AFAIC is that I have gone from a regular once a month combined order purchaser of Hornby/Bachmann to a haven't bought anything from Hornby now since early 2016, and even that was a one off must have (unrebuilt MN "Royal Mail"), along with the rake of K Type Pullmans I'd been lusting after but refused to buy until Hornby surprisingly remaindered them at an ameliorated price point finally amenable to me.

Until then, in the year or so immediately prior as Hornby and Bachmann prices skyrocketed, I had limited myself to a compromise of a long lusted for single coach purchase of a brake third for my "Tees-Tyne (Metro-Cammell coached) Pullman" at the whopping etail of £65 which shared 'top and tail' slots with a BR maroon Bachmann Mk1 BG.

Similarly with Airfix, part of that same group. Finally, Airfix have embraced the need for change and even made some smart marketing choices in what they have produced. But, despite some stunning successes, they have two problems I forsee an obstacle for them.

The first is that regardless the fidelity of the model now achieving parity with the current state of the art, the models they are choosing are
A. subjects which appeal to my generation .e.g Whitley, Wellington, and B. by and large they are still producing them in 1/72, a scale which no longer holds appeal to me and many of my generation that 1/48 does for a myriad of reasons ICBF elaborating upon here.

The second critical element is simply price. Airfix have stopped supplying Hattons because of the protest hue and cry from high street stores. Now, sources I can buy Airfix kits from are as expensive as releases from other contemporary manufacturers and ever more frequently even dearer, many of whom still do it much better. Unless it's a subject in the particular I really, ...really have a high desire for, when it comes to "you can't build or buy everything" crunch time pressing the buy button, Airfix more frequently than not get triaged back to the want list to miss out on my $$$ because of their poor relative value and what now seems minuscule and not a whole lot of fun for aged eyes and fingers to build, scale.

Eight times out of ten, Eduard, Hasegawa, Tamiya or Zvezda in 1/48 will get my money, along with Dragon in 1/35 when it comes to Marine or Armour which Airfix have effectively abandoned. Even Revell, which are frequently Eduard, Has, Tam, Zvez et al OEM reboxes released in a Revell box in a two decal or version only option al la Eduard's Weekend Kits scores better than mere parity with Airfix in my stash and wish list.
Bigmet
Posts: 10172
Joined: Tue Aug 14, 2007 2:19 pm

Re: Financial Woes Continue

Post by Bigmet »

Bigglesof266 wrote:YMMV, but I think Hornby are in big trouble...
Without any doubt. If I am reading it right, there is going to be a restructure strictly to what they do profitably. I am expecting a much smaller Hornby group with fewer product ranges. It has never been made clear just what isn't performing within the group, this may be the year we find out, by evidence of what is sold off or discontinued.
Byegad
Posts: 175
Joined: Fri Jun 30, 2017 1:56 pm

Re: Financial Woes Continue

Post by Byegad »

Sad to see Hornby yet again in need of rescue. I suspect the post Brexit exchange rate changes have hit it pretty hard, as they have other brands.
Ex-Pat
Posts: 2201
Joined: Tue Feb 08, 2011 10:51 pm
Location: Newry Northern Ireland

Re: Financial Woes Continue

Post by Ex-Pat »

luckymucklebackit wrote:
Hope they survive long enough to get the J36 released. :wink:

Jim
Precisely my thoughts as well (says he with a sinking feeling) although things must be at a reasonably advanced stage by now, such that an enterprising concern could take it over if things came to that.
User avatar
PanzerJohn
Posts: 132
Joined: Mon Aug 13, 2012 10:12 pm

Re: Financial Woes Continue

Post by PanzerJohn »

I have been wondering that bringing Lyndon Davies in from Oxford Models could be beginning of a merger/takeover.
Bigmet
Posts: 10172
Joined: Tue Aug 14, 2007 2:19 pm

Re: Financial Woes Continue

Post by Bigmet »

He's the experienced independent operator from the same business sector hired in to give the investor's confidence. (Can do this stuff profitably with no need for outside investor support = competent.) It does look like he could end up owning a significant proportion of the Hornby business. His call on whether he cares to take the risk. At the moment I expect there are some hard conversations going on to identify just which aspects of the business have a profitable future, and how to navigate the necessary changes that will create a sustainable 'Hornby'.
User avatar
luckymucklebackit
Posts: 3712
Joined: Mon Jul 18, 2011 7:05 am
Location: Eaglesham (Again)
Contact:

Re: Financial Woes Continue

Post by luckymucklebackit »

I can still envisage the business being split sometime in the future, something along the lines of the Hornby brand being retained for trainsets and a slimmed down railroad range, with that sector of the company focusing on the young enthusiast (something that they have done with reasonable success in the past). The "high end" models for serious modelers and adult collectors could then be re-branded and re-marketed, very possibly in collaboration with the major retailers.

Jim
This Signature Left Intentionally Blank, but since I have written this and I intended to do it, this Signature is intentionally not blank. Paradox or What?
My layout - Gateside and Northbridge
Image
GWR_fan
Posts: 4700
Joined: Sun Apr 29, 2012 11:57 pm
Location: Antipodes

Re: Financial Woes Continue

Post by GWR_fan »

PanzerJohn wrote:I have been wondering that bringing Lyndon Davies in from Oxford Models could be beginning of a merger/takeover.
I am sure that as a successful owner of a model company he will not want a Hornby failure to rub off on his own brand. Hornby as a trademark will survive but not as we know it. Lyndon did not take on the reins of Hornby to see it fail as the failure would reflect on his business expertise. I see his position as to salvage what he can to remain profitable and dispose of the dead wood, possibly taking on the revitalised brandname as part of his "empire".
Notanyware
Posts: 46
Joined: Sat Oct 21, 2017 2:12 am

Re: Financial Woes Continue

Post by Notanyware »

The problem with Hornby Is they have to many eggs in the basket, they need to dump the foreign brands and do what they do best making British models, I also think with so many new players in the OO gauge game it may be that they are struggling to compete, if they cant handle the heat it may be time to pull the plug as I and many other people are over hearing about the Hornby financial woes, with nearly all the British car manufacturers ceasing to exist why worry about a mob like Hornby.

Cheers
Dave
dazamccoy
Posts: 49
Joined: Mon Jun 04, 2007 12:37 am
Location: Moira, Northern Ireland

Re: Financial Woes Continue

Post by dazamccoy »

I hope they survive and thrive. I would love them to do a full refresh of the Thomas line. Everything should be DCC ready/equipped, loco drive, TTS ready with favourite phrases for each of the characters. Most importantly fresh moulds based on the original TV series.
User avatar
Bufferstop
Posts: 13788
Joined: Thu Mar 11, 2010 12:06 pm
Location: Bottom end of N. Warks line

Re: Financial Woes Continue

Post by Bufferstop »

You mean like the ones that Bachmann make for the US. They even fit them with tensionlocks. They have done the exact reverse of Hornby's approach. They commissioned models for the Thomas series, then de-branded them for the junior range. Percy's alter ego Gregg was released in a DCC starter set, it's built on a delightful little outside cylinder 0-4-0 chassis, and with a few tweaks to the body makes a great little industrial.
Growing old, can't avoid it. Growing up, forget it!
My Layout, My Workbench Blog and My Opinions
Paul-H
Posts: 244
Joined: Fri Jun 05, 2009 3:00 pm

Re: Financial Woes Continue

Post by Paul-H »

For me their problem and I suspect this applies to Bachmann as well but they are covering it better is the huge price rises over the last decade, having just returned to the hobby after a 10 year absence I have noticed some huge price rises. With Locos you used to be able to get a Bachmann or Hornby for around £80 to £90 and a sound fitted Bachmann was about £140 and wagons were about £10 and coaches were around £20.

Now only 10 years later you can be asked to pay around £160 for a Bachmann and up-to £230 for a sound fitted model, although sound decoders have almost stayed the same price over the same 10 years, but biggest jump has been in rolling stock, which are compared to locos very simple and cheap to produce containing no electrics or moving parts, here we see wagons jumping from £10 to well over £20 and Coaches jumping from £20 to well over £40 with some hitting £50.

Thank whomever you pray to for Dapol and Oxford Rail for keeping Wagon prices down to £10 and if they can do it why can't Hornby and Bachmann.

These prices are killing the hobby, it cannot be sustained by the ever shrinking must have and at any price customers and pricing their core customers out of the hobby will only end one way.

Make the most of what you own now, there may not be much choice about in another 10 years.

Paul
Post Reply