Question From A Student

Hello All,

I want to get your opinion about the modeling industry and the good and bad products that manufacturers are putting on the market. Is there anything that companies COULD be offering that would be a benefit to you?

Who am I?: I am a business student at The University of St. Thomas in Minneapolis, MN. I have been assigned to take a look at the modeling industry and companies like Testors and try to build a picture of why things have been in decline over the last 10 years or more.

Further, I have been assigned the task of putting together a plan to increase interest in these types of products - or even find new markets in which these products could be applied (crafts, for example).

I do not work for any of these companies, this is strictly a class project. I thought who better to ask than the enthusiasts who use these products!

That being said...fire away.. let me know what you think...rants and raves are encouraged!

Jeff Certain
University of St. Thomas
MBA Program

My somewhat outlining reply:
1a. You're basically asking for a four or more page answer from each person on this website.
And there is a high chance that one person's post will totaly get flamed by another due to difference of opinion.
Take the saying " One person's trash is another's gold."

1b. Companies, even the best, have become to grown $ signs in their eyes. Most at some point, have decided to make a quick buck at quality's expense. Take some of Tamiya's recent car models for example: Instead of giving us a detailed plastic chassis they decide to make a flat slab out of metal. Why? They can sell the kits with the metal for more money.

1c. There is too much that the modeling companies COULD be offering us but don't. The reason is simple, money. A lot of us are looking for exact items while the companies are trying to make items that will sell in bulk.

2a. There are many reasons why modeling has dropped in all ages in the last decade or even longer.
1. IT, one main reason is what you are staring at now, your computer and the internet. At least in my case, I spend 70%+ of the time I used to spend on models in front of a computer or in front of the TV. Entertainment, research, just messing around...
2. The economy, costs of supplies, kits, tools etc have jumped quite a bit and modeling itself isn't always a cheap hobby.
3. Licensing, one of the main reasons why we don't see new kits (not just in model cars mind you). For a vauge example, say compay X in 1980 decided to charge 1000Us for the licensing of a kit. Now in year 2008 they are asking 2million. (Note: this is just a figure of speach)

3a. About 80% of modeling items can and are used in or even came from different crafts. Modelers often use things you wouldn't imagine even being used for models. IE: A guy askes his wife for a pair of her old stockings. Why? So that he can paint a carbon fibre pattern on his F1 model.
IMO, the only thing that hasn't found a new use are the model kits (unmade) themselves.

Eh, don't know if that helps but just my opinion.
Steve

Thanks for the reply Steve.

Yeah, I understand it is a very open-ended question, but thats really the idea. I am more interested in how you guys (and gals) feel about where the industry is going and how to stem the decline.

With you reply, I got exactly what I am looking for....thanks again.


Jeff

If you want to "build" the model building industry, you must eliminate the instant gratification of video games and computers our modern youth is exposed to.

My son used to be quite interested in my hobby, but since he's gotten older, video games and what not have consequently eliminated his interest in working for something if he can get an instant "high" simply by pressing a button.

The problem with building models in the youth is mostly that they don't DO anything....it's boring. Making modeling exciting is something that I don't feel can be programmed in by marketing ploys or brainwashing. You either like it or you don't.

Making the adult modeling industry (not porn) grow would likely be simple to answer, but difficult to attain. Making it easy for manufacturers to gain licensing would be the answer, but actually getting the companies like Ford, Nissan, and Ferrari, to name a few, let some "little" company like Revell/Monogram or Tamiya infringe on their trademarks and copyrights without paying BIG money and HUGE lawyer fees would be neigh impossible.

It all boils down to money. Producing a good kit costs lots of earth rotating paper and ink (money makes the world go 'round). Buying a good kit also costs lots of dough. Make stuff cheaper and higher quality, and you'll probably sell a LOT more merchandise. Hell these models we build, the base kits are just PLASTIC!!!!!!! Take out the cost of research and development, I'd bet a kit cost a little more than $.50 to make, package, and ship (keep in mind I'm talking a large manufacturing facility that produces thousands of kits a day.)

I'm tired, and this is probably a bunch of babbling, but I feel I tried to give you my opinion and hope it helps your research.

What decline??

I don't see a decline. This is a fantastic time to be a modeler. What data do you have that shows a decline? Testors is not as profitable as it used to be? Neither is Oldsmobile. But that doesn't mean the hobby is declining.

So kit manufacturers are making fewer kits- but who really cares?? Does it matter at all? Show me one modeler (or even a potential would-be modeler) who is not building now because they can't find a kit they want to build. There are plenty of kits out there. I personally could happily and productively build for the next full century and never run out of kits I want to build. Do there really need to be more?

Some model companies are less profitable than they used to be. So what? Some are more profitable than they used to be. Can you show me real data showing a real decline in people building models? Can you show me figures showing a true decline in money spent on modeling globally? I got to see a brand new modeling related company start up this week. Is that a decline?

I'm tired of hearing about video games and diecasts. Why is there this myth (especially in the US) that 'the future of modeling' is somehow related to what kids today are or are not doing? It truly does not matter. This is an adult hobby that some children happen to participate in. Don't believe it? Why is it then that this forum has practically no young members? We have as many or more adults regularly coming new to this hobby as we have adults who built as kids decades ago returning to it. Whether someone built as a kit has almost no bearing on whether they choose to build as an adult. So why all the focus on kids? Saying modeling is declining because of video games is like saying we need to get rid of bicycles and comic books to get people to build. Still don't believe it? Fine- show is some data that conclusively shows that people who built as kids are appreciably more likely to build as adults.

Modelers always seem quick to go on about how the sky is falling an how the bottom is dropping out from the hobby. But from the hobby shops, online stores, and forums I frequent, I can't say I see a decline.

What decline??.....Modelers always seem quick to go on about how the sky is falling an how the bottom is dropping out from the hobby. But from the hobby shops, online stores, and forums I frequent, I can't say I see a decline.
You took the words right out of my mouth! :)

Given the whole new world of aftermarket detailing that has mushroomed in front of my own eyes in just the 4 years I have been modelling, I'd have to say that things are moving forward very nicely thank you :D

(ranty bit ;) )
Also, WTF does everyone think that manufacturers are f**king charities and are supposed to sell kits for 2cents each!?!? Of course they are interested in making money - who isn't. The market will ALWAYS regulate their prices - that's why I will NEVER buy an Acustion p/e set. Scale modeling can be an expensive hobby if you want it to, but it doesn't need to be.

If you just correct opinions, you won't be able to develop a convincing argument. Contact manufacturers, obtain press releases, get some facts with numbers, and put them together with your own analysis and proposals.

Many people are no longer interested in doing things on their own, so it's not just modeling, but cooking, home improvement, or anything that requires knowledge and skills and time is in decline. (How much? Well, you have to google it on your own!) If you look at the manufacturing sector of the last two decades (for your first point), or the children's interest in engineering or manufacturing (for your second point), and then tie them with our project, you'll probably be able to write an interesting paper.

Good luck.

I'd like to offer some thoughts about my perspective.
I agree a lot with what cyberkid said. As for thoughts on people blaming video games etc, it's true that there are a lot more other distractions and freedoms we can enjoy aside from modelling but that doesn't necessarily mean it completely takes people away from the hobby. How many fantastic builds have we seen inspired by video games, movies etc? I'm grateful for the increased sources of inspiration. Maybe it's not a decline in numbers of modellers as such, but rather a decline in the percentage of things people do as hobbies, taken up by modelling.

It is a shame that some companies charge quite a lot for some items but I love seeing the innovation from modellers who find and share so many ideas to get around having to buy something you could make at home. It's just one of the ways this hobby is growing. (I also doubt there being a decline; remember that thread about how busy Hiroboy's store was?).

It was such an enlightenment when I first joined this forum and was so pleasantly surprised at how many people share this hobby, young and old, male and female. I don't agree with MPWR's point on it being an adult hobby though. I just know that with age comes experience. I just love it when someone posts his/her builds and you can instantly see that person has a real talent.


As far as the initial questions are concerned, the things I think manufacturers COULD beneficially offer us, would be quality and licensing. Bring out more varied, high quality kits at reasonable prices....but we all know that will never happen! Detail-up parts are already out there and clever people on this forum already offer their cost-saving ideas. It's kits that are the bases of our work.

I am also of the mind that you'd be hard pressed to really nail down a "decline" in the hobby. No, you can't find kits in any grocery store, and yes the model sections in places like Wal-Mart are shrinking. However, to me this is a sign more of diversification than decline.

I am not, by any means, very business minded but I can see what's in front of me. I do see hobby shops doing well (and others doing poorly), but the key to them is that they're specialty stores with specialty distributors. The distributors that sell the kits to Wal-Mart are probably liquidation distributors selling hard to unload kits for far less profit. That there's less of these doesn't mean that anything is in decline, just that business is getting a little more efficient.

In any case, Revell and Tamiya and Aoshima and whoever may not be as profitable as they used to be and big-box stores may not be making money on kits like they used to. But take a look at the explosion of really small, specialty model companies that are making great stuff and doing tremendous business. I know Replicas and Miniatures of Maryland is swamped, and I imagine Scale Motorsport and Historic Racing Miniatures are too. These companies cater to a hobby that is fragmenting and diversifying, there are as many different cars being built as there are builders and this means there are as many different sorts of demands for parts and kits; this is very hard for a bigger company like Revell or Tamiya to keep up with, but easier for smaller niche companies to work in.

Just look at the music industry for a really great analog to this. There are as many different musical stylings as there are listeners, which is why there has been a move from big record labels to independent music and self publishing. A lot of modelers these days don't look to Revell or Tamiya, just like not many listeners look to BMG or Sony. We instead look to SMS, RMoM and Hiroboy just like music lovers look to Merge, Vice and Geffen. Some of us make what we need ourselves or work in tight communities of builders, just like some people buy CDs directly from bands in a bar after a gig or trade underground tracks with friends.

Diversity is not decline. It may slow the large amounts of cash from flowing where it traditionally has, but it opens doors to other, smaller markets waiting to be tapped. The real winners will be the big companies that can do both. We've seen Aoshima and Fujimi take on both better, cooler, higher quality kits while still looking in to smaller markets with detail-up parts and aftermarket wheel sets - hell, Tamiya is getting into it and MRC did it a ton a while ago. Don't blame kids or video games or laziness for a perceived decline in modeling. Look for where modeling is going, and blame anything that needs to be blamed for on big stick in the mud companies who are slow to adapt. We as consumers are shifting a market, it's their turn to do their part and make a dollar off of us, if they want to stick around.