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How Big?

1115 Views 8 Replies 6 Participants Last post by  Eamonn macHarris
I was glancing through Wikipedia (as one does) and I know it's not the Bible in terms of accuracy but it mentioned that Bachmann industries were the largest model railway manufacturer by volume. I didn't find that surprising but it said their turnover for 2006 was US$46.87 million. That seems small as Hornby's turnover last year was US$95.08 million! By value are Hornby twice as big? I know in the US they sell heaps of cheap sets but their range is quite extensive plus there are their Euro divisions also. Any thoughts anyone?
What am I missing?
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You asked: "
What am I missing?
"

(1) Hornby doesn't only sell trains, so their model train sales are lower then their total turnover

(2)
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Grrr - sorry, finger trouble :) :)

You asked: "
What am I missing?
"

You probably aren't missing much but the Wiki creator is, I'm sure... I think that the Wiki is perhaps based on limited info or viewpoint:

Bachmann and Hornby are single brands: To be honest I find it hard to believe that at least one EU company (Marklin/Trix) and a couple more US companies aren't at these or higher levels!

For example, one company "owns" and distributes the brands Broadway Limited (BLI), PCM, Tower 55, Intermountain all of which do very well, and Walthers own LifeLike which is Proto etc etc etc - and thats just on HO. Large scale sales in US are very big (Lionel etc)

Anyway - other thoughts

(1) Hornby doesn't only sell trains, so their model train sales are significantly lower then their total turnover

(2) Bachmanns parent company Kader make for several brands other than Bachmann, so they may be significantly larger than "Bachmann Branded" products.

Apart from the above - numbers seem small for leadership. For example two American O scale companies recently went to war in the courts and one was awarded over 40 milllion... for loss of profits and technology theft etc... just for a bit of proprietary tech stuff...

Another example Hornbys Chinese manufacturer Sanda-kan makes for many brands in huge qtys and would have to be at much bigger than Hornby or Bachmanns turnover in trains as they are the source for much of the huge US markets product.

Richard
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QUOTE Bachmann and Hornby are single brands: To be honest I find it hard to believe that at least one EU company (Marklin/Trix) and a couple more US companies aren't at these or higher levels!

Not strictly true. Bachmann/Kadar do indeed claim to be the largest model railway manufacturer in the world by volume. I've heard the claim made in a presentation by Dennis Lovatt , though he added that Maerklin are larger by turnover (but smaller by unit volume)

This includes all the brands of their model railway empire - Bachmann in the US, Lilliput, Bachmann and Farish in Europe plus Bachmann's Chinese range . The Kadar factory also apparently make models for other undisclosed brands (some of the specialist Australian names came to my mind)

To call all Kadar's model railway activities Bachmann is a slight simplification , but it is their usual brand in most markets.

And strictly speaking Hornby are no longer a one brand operation since they now have Electrotren, Jouef , Arnold and Rivarossi , though their market presence in the US is obviously very small

The writer of the Wiki may have got his wires slightly crossed and quoted turnover figures only for Bachmann Europe , not for the whole of Kadar's Trains Division (which I doubt would be publicly available) - the figures do not look right for Kadar globally
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The trouble with Wikipedia is that anyone can go in there and write whatever they like. As a result it is frequently manipulated as a propoganda tool and cannot be taken as authorative.

We had a thread last year about Hornby's annual turnover and from memory it was about half Maerklins which was again dwarfed by Bachmann which was by far the largest.
QUOTE (neil_s_wood @ 11 Sep 2007, 06:47) <{POST_SNAPBACK}>The trouble with Wikipedia is that anyone can go in there and write whatever they like. As a result it is frequently manipulated as a propoganda tool and cannot be taken as authorative.

As an American statesman once said "There are lies, damned lies and statistics."

Regards
QUOTE (BRITHO @ 11 Sep 2007, 22:11) <{POST_SNAPBACK}>As an American statesman once said "There are lies, damned lies and statistics."

Regards
So true, having studied Statistics at University I am fully aware that you can get them to say anything you want.
QUOTE (neil_s_wood @ 12 Sep 2007, 08:26) <{POST_SNAPBACK}>So true, having studied Statistics at University I am fully aware that you can get them to say anything you want.

True, but beyond that there must be truth.
The manufacturers must know this information but it must be confidential. Still surprising it doesn't come out in this day and age.
Also muddying the waters is it's almost impossible to compare like with like. For example if one wants to know about market share in 00/H0 then Bachmann's 0n30, G, Farish, Liliput H0e and possibly more need to be taken out. And then include Underground Ernie.
The same applies to most manufacturers.
QUOTE (BRITHO @ 11 Sep 2007, 20:11) <{POST_SNAPBACK}>As an American statesman once said "There are lies, damned lies and statistics."
Usually attributed to Mark Twain who was American but not a statesman but it seems that a case may also be made for Benjamin Disraeli who was not American but was a statesman...

Regards,

Eamonn
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