Larry,
I’m not wanting Tamiya to leave the industry, nor do I want it to buckle, (that was someone else’s comment) but how else can you explain their current strategy of kit pricing and their sudden plunge into 1/48 armor? I hardly think that the ‘time was right’ for Tamiya to move into 1/48 scale instead of trying to competitive in 1/35. Truth is, Tamiya moved to 1/48 because there was no one else in that particular niche market that could compete with them. Tamiya has dozens of kits that SHOULD be re-tooled to today’s standards, but we’re not seeing any of that happening, are we? And although they might be the leader in the plastic model industry right now, Trumpeter and Dragon are on the fast track to bury them. That is obvious. If they were playing nicey-nice like the Japanese ship model companies did back in the 1970s, then we’d be seeing Dragon and Trumpeter releasing kits that didn’t conflict with Tamiya’s offerings.
As for having sales figures, yes, I have access to them…Model Retailer is just down the hall. But it doesn’t take a economist to figure it out. China, Korea and Taiwan are cheaper than Japan is. That’s pure fact. So…a kit that costs X in China costs what? X+20%, X+40%, X+50% in Japan? You have several choices…
Increase your retail price to keep your profit margin…higher prices, fewer sales. BAD for everyone (this is what we’re seeing right now).
Lower profit margin to lower retail prices…potentially more sales, but less profit. BAD for Mfg. good for us.
Move production to lower costs…lower costs, higher profit if prices stay level. No change for the consumer, good for the mfg.
Move production to lower costs…reduce profit margin. Cheaper kits, more sales, profit comes from quantity sales. GOOD for everyone.
What are we seeing happen with Tamiya? Why is their ‘Super Kit’ of the Tiger in excess of $100, when it’s a $50 model with some extra stuff? Dragon is providing all that in their kits for less than $40. Maybe it’s not including metal indy links, but the new Dragon Tiger I links (the bagged, pre-cut, no pin-mark variety) are just as nice.
Is the writing on the wall? Certainly is. Doesn’t take an industry expert to figure that out. How many new Tamiya kits in the last year? How many new Dragon, Trumpeter, AFV, and Academy kits in the last year? Pretty obvious if you ask me.
Jeff