Shakeout in diecast?

[BillC]

Mattel reported third quarter sales increased 7% and profits were up 6%. The only major division to miss its sales target was the Wheels Group, including Hot Wheels, Matchbox and Tyco R/C, where sales were down 3%.

In a recent article in Hobby Retailer, representatives of leading diecast makers said the market is overcrowded and predicted the market will stop growing and could even contract, leading to possible consolidation in the industry and the likelihood that some brands will disappear as manufacturers either fail or leave the segment.

Maisto has already acquired the Bburago name following the Italian company's bankrutcy and liquidation and there is a trend towards heavy competition among established brands.

Manufacturers are already under pressure as their costs have risen sharply this year while their ability to raise prices is limited by demands of mass-market merchants like Wal-Mart, Target and Toys 'R Us.

[stanhas87]

Dear All:

Regarding Matchbox.the complaints I heard is towards distribuition.The new vehicles takes for ever to reach the shelf and becomes the case of 'I can not buy what I can not find'.

The volume of Hot Wheels,at least at Target,seem smaller as compared to last year.Also do not see silly things such as Blings and other botched caricatures,maybe a sign that Mattel realizes - again,maybe - that these does not sell as well as the real cars (Matchbox learned that in the worst way).

[keroliver]

Hot Wheels decision-makers may have read our forum and the thread I posted in November 2005:
87thscale.proboards23.com/index.cgi?board=Topic&action=display&thread=1131680277

So, here is a message to the toy shops, be clever and STOP buying these ugly 'tooned' or other silly looking models... obviously, just look at your non-sold stuff, it doesn't work and bring in some more interesting models...
More Realistix behind the counter ? Give me ! Give me ! Give me ! Giiiiive me !

Here, the shelves are -still- full of this stuff. It has been more than a year now. We never got the second and more deliveries of 2006 models.

[stanhas87]

Dear All:

If there is an al-out war in there,I can count on one survivor:Realtoy,who is offering Johnny Lightning-quality vehicles as $ .80 each,if one buy their sets.The cars are high quality for their 'basement' pricing,that is the way it is.

Maisto went to the higher priced diecast and Motormax is following the trend.Problem is,the former is offering a 1971 Chevrolet Convertible and 1987 Caprice (it was time someone did that) as 'Monster Truck' vehicles;the latter is doing the same as far as their Chevy Caprice Coupe 1976 is concerned!!! Nevertheless,these models are not limited to the dollar price brand,so there may be constant releases at these series.Matchbox and Mattel have similar high priced diecast and often interesting models are released,such as Hot Wheels Oldsmobile 1957.And Johnny Lightning always bring that missing model,but at $3.00 - 5.00 a shot.Welly is not to be found anywhere;the same is true about Majorette and Siku.

[stanhas87]

Dear All:

Also,as a sub-commentary,it seem to me that Maisto been feeling the metal price sting since the beggining of this Century (or trying to protect itself from it).Their basement series,the Transit Authority (given after several other names) did not had interiors since them,and gave an impression of a 'cheapo' casting,besides the fact that the bodies and graphics were accurate.Now,their site indicates that there were no new models for 2006 and word is that this series will be discontinued.Hence,Maisto may join Johnny Lightning as a producer of premium (no street versions,please!!!!!) diecast.