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Model Train Manufacturers Going Out Of Business
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Offline river6109  
#51 Posted : 08 October 2009 15:13:44(UTC)
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river6109

Australia   
Joined: 22/01/2009(UTC)
Posts: 14,875
Location: On 1965 Märklin Boulevard just around from Roco Square
Quote:
[size=1" face="Verdana" id="quote]quote:Originally posted by kimballthurlow
<br />John, you speak of opportunities for Märklin.

There is certainly a huge potential for any supplier, to service India and China.
However, the opportunity is only there for those who have <u>capacity</u>.
In order for Märklin to take advantage of just one of those markets, would it need to:
1. establish new channels for marketing?
2. double, triple, or quadruple their manufacuring capacity?
3. create new teams able to research railroads in those countries?
4. double, triple, or quadruple the size of their buildings?

Any one of the above takes new investment, ie. new money.
regards
Kimball

Kimball, your comments have merit,
On the other hand, Märklin had many opportunities in the past to fill these export gaps.
Getting bigger is not always the best.
There are many aspects to it, how to run a business.
also a computer game trend for younger kids has been developed and marketed over the years and it is'nt modeltrains..In the end it does'nt matter how big or how small your business is, with a deep recession, nothing is save from collapsing.

regards.,
John
https://www.youtube.com/river6109
https://www.youtube.com/6109river
5 years in Destruction mode
50 years in Repairing mode
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Offline gachar001  
#52 Posted : 08 October 2009 18:05:56(UTC)
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gachar001

India   
Joined: 29/04/2008(UTC)
Posts: 1,391
Location: Chennai
Quote:
[size=1" face="Verdana" id="quote]quote:Originally posted by Bigdaddynz
<br />Lets face it, there are 1.2 billion consumers in China and another 1+ billion in India. More than 3 times the number of Europe and the US combined. Image if M could get their fingers in those pies!

Selling M* in India would be a challenge.
1. India is a poor country. Even though the economy is growing rapidly and there are a lot of wealthy people, I feel there are not enough folks out there who would be able to afford thousands of dollars on MRR stuff. Most people who can afford it also travel abroad frequently and buy what they need during their travels.
2. People who are now having a good income due to the economic growth are still concentrating on buying a house/flat, car, washing machine etc.
3. Due to sky rocketing land prices, houses are typically small and would lack space to build a layout.
4. There is a lot of dust. This rules out having a permanant layout as it would be coated with dust in just a few days.
Gautham
Atlanta, GA USA
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