Badcat on 1/18 market
Posted: Mon Jul 18, 2011 7:37 am
From Badcat's blog:
"1:18 BBI F-16 A Good Barometer For The Market
We've spent our energies this week focusing on the 1:18 BBI F-16 Preorders. We'll be wrapping-up these shipments today and thank everyone who ordered one of these great airplanes. A lot of water has passed under the bridge since the first F-16s debuted in 2005. So, the question of the day is: How do sales for this repaint compare with a similar repaint released in the golden years of 1:18? Answer: About 1/4. Here's why . . .
1. The economy. Obviously the long recession, unemployment, housing distress, credit crunch, etc., finds the collecting public with less discretionary income for these types of purchases. O' Five was pretty much a boom year in comparison.
2. The price. F-16s were about $69.99 in 2005 compared with $169.99 today. This fact alone probably contributes the most to the decline in sales. Since 2005, China has seen at least a 400% increase in wages, the Chinese currency is much stronger against the weak dollar, petroleum related products have risen as the price of crude has more than doubled, and production runs of planes are much, much smaller since the big box stores dropped 1:18 pieces and its collectors like a hot potato. All of these factors have put plenty of upward pressure on airplane prices.
3. Fewer collectors. With few airplanes and tanks to buy in 1:18 scale, many collectors have moved on to other scales or hobbies. One-seventy-two scale has several new toolings appear every months and probably 100+ new repaints, too. By comparison, 1:18 is lucky to get a repaint or two released in an entire year.
The F-16 is not only a sight for sore eyes for collectors, it is a valuable piece of information for retailers and manufacturers throughout the industry. I am occasionally asked by manufacturers, "How much of the market remains"? My estimate for the past couple of years has been 1/5. The F-16 proves to me that the market is slightly better than my estimate.
The remaining manufacturers will have to decide if the 1/4 number represents enough meat on the bone for additional releases. My guess is that it WILL provide enough horsepower for additional repaints using existing tooling assets that are currently idle. However, the demand may not be enough to justify a venture into a new tooling."
"1:18 BBI F-16 A Good Barometer For The Market
We've spent our energies this week focusing on the 1:18 BBI F-16 Preorders. We'll be wrapping-up these shipments today and thank everyone who ordered one of these great airplanes. A lot of water has passed under the bridge since the first F-16s debuted in 2005. So, the question of the day is: How do sales for this repaint compare with a similar repaint released in the golden years of 1:18? Answer: About 1/4. Here's why . . .
1. The economy. Obviously the long recession, unemployment, housing distress, credit crunch, etc., finds the collecting public with less discretionary income for these types of purchases. O' Five was pretty much a boom year in comparison.
2. The price. F-16s were about $69.99 in 2005 compared with $169.99 today. This fact alone probably contributes the most to the decline in sales. Since 2005, China has seen at least a 400% increase in wages, the Chinese currency is much stronger against the weak dollar, petroleum related products have risen as the price of crude has more than doubled, and production runs of planes are much, much smaller since the big box stores dropped 1:18 pieces and its collectors like a hot potato. All of these factors have put plenty of upward pressure on airplane prices.
3. Fewer collectors. With few airplanes and tanks to buy in 1:18 scale, many collectors have moved on to other scales or hobbies. One-seventy-two scale has several new toolings appear every months and probably 100+ new repaints, too. By comparison, 1:18 is lucky to get a repaint or two released in an entire year.
The F-16 is not only a sight for sore eyes for collectors, it is a valuable piece of information for retailers and manufacturers throughout the industry. I am occasionally asked by manufacturers, "How much of the market remains"? My estimate for the past couple of years has been 1/5. The F-16 proves to me that the market is slightly better than my estimate.
The remaining manufacturers will have to decide if the 1/4 number represents enough meat on the bone for additional releases. My guess is that it WILL provide enough horsepower for additional repaints using existing tooling assets that are currently idle. However, the demand may not be enough to justify a venture into a new tooling."