This statement below was made before the current news that Märklin has filed for bankruptcy. Märklin has announced today that it has filed for insolvency proceedings at the Göppingen court. We'll bring more news when it is available.
Statement on the state of affairs in the model railway industry by Roland Gaugele, Märklin spokesman.
Model trains are fascinating, but the lack of new customers is on the increase. The industry appears to agree with this. Manufacturers have announced a retreat - back to the children's playroom. See Circus Mondolino.
On which frontlines are manufacturers engaged most? With cell phones and PCs? With setting product prices, with the company image or gaps in market penetration? Or the fact that model trains are no longer part of the real life of today's children, of parents who would rather outsource child supervision and upbringing rather than taking time for playing and tinkering?
Roland Gaugele: Its time for industry to stop complaining. Complaining doesn't win new customers. On the contrary, the hobby will become even less attractive. In the past, there were always children who didn't want "electric" trains, although toy choices then were obviously less numerous than today. And the number of customers who became genuine hobbyists after receiving their starter-pack also remained in the one-digit percentile.
The real problem confronting all participants in the toy and hobby segment is the significant reduction in the number of children in today's market. The children's market is hotly contested and therefore many suppliers are attempting to penetrate the adult market. Model trains established themselves long ago in this market segment and they possess a clear advantage here over other toy market competitors. However, that does not mean that we can sit back and relax.
We must continue to work hard and maintain the attractiveness of toy / model trains for children at the standards demanded by our target groups. On the one hand, this involves children's themes such as our Circus Mondolino, Fire Department and THW starter packs. However, these are also complemented with new play-elements such as light, sound and remote controlled mechanisms that make complex model operations even more realistic and action-oriented.
Detractors tend to overlook the moderate entry prices which are competitive with most other alternative toy prices. A complete beginners system starts at € 100 (Recommended Retail Price). Other locomotives start at € 65 (RRP) and coaches start at € 8.95 (RRP). We are taking all measures to insure that the attractiveness of our model trains is maintained at the highest possible level for our target groups.
The pedagogic benefits of model trains for the development of children remain undisputed and are more important today than ever before. Responsible parents know this and want to ensure sharing the social interaction with their children that a model train hobby can provide.