The economic uncertainties are curbing the desire of model railway fans to buy. Less is being bought, said managing partner Florian Sieber from the market leader Märklin. In the current financial year, the sales volume has fallen slightly.
Nevertheless, the traditional manufacturer from Göppingen expects sales of 128 million euros in the financial year running until the end of April - which is still well above the level before Corona. Due to rising production costs, consumers will have to spend a little more on model railways in the future.
The Simba Dickie Group, which, in addition to Märklin, also includes the Bobby Car manufacturer Big, also recorded a 7 percent decline in total sales to 701.9 million euros in 2022. In view of inflation, the energy crisis and still full warehouses in retail from the 2021 Christmas business, that was more than could have been expected, said the commercial director of the Fürth toy manufacturer, Manfred Duschl. Earnings have fallen compared to the previous year, but are still at a satisfactory level. The group generally does not give exact figures. For 2023, they are planning a total turnover of 731.9 million euros.
The games boom in the corona pandemic had boosted the sales of many toy manufacturers, including Märklin. You have been able to win and keep many new customers, said Sieber. In the 2021/22 financial year, the manufacturer achieved sales of 131.4 million euros. The current financial year is very difficult, said Sieber. In addition to the reluctance to buy, Märklin is feeling the effects of delivery problems with electronics and rising costs for raw materials, energy and wages. Additional costs of 1.5 to 2 million euros were incurred at the production sites in Göppingen and Hungary. "That's significant."
Nevertheless, Märklin only wants to increase the prices for its model railway products slightly in the summer. The Simba Dickie Group is also assuming that the price increases will be rather small, but they will vary in the various segments.