Good to Go!

In the new hobby landscape what was once the competition for time and customers has become the new ally of the industry.

The entire do-it-yourself craze on television has been a boon and boom to companies like Lowe's and Home Depot. Now TV is working its magic for the model hobby industry. The joy of making things hands on has again become the in thing. It's a major shift that retailers—even those that don't ordinarily carry hobby merchandise—can use to their advantage.

Shows like Do It Yourself Network's (DIY) “Radio Control Hobbies” and the Outdoor Channel's “Inside R/C” have brought hobbies into the mainstream. This gives model hobbies the chance to show they have grown beyond the glue, welding and from the ground-up construction of old. Ready to run (RTR) has really helped these shows get off the ground and into people's living rooms.

“We get a lot of feedback from the various trade organizations telling us that when an episode airs in their area, the shops seem to get an influx of walk-ins and phone calls for the featured products,” Bill Sykes, vice president of programming for the DIY network, tells Playthings. Ready to run made it easier and quicker to get into a hobby for the first time in years; it really helped get the series going, he adds.

While DIY's shows appeal to the newer hobbyists, there are also show segments for the hard core enthusiast—like episodes on gas- and nitro-powered products. Reaching over 30 million homes, DIY has received a lot of positive response from viewers and the industry's organizations. The network plans to run six more episodes of the “Radio Control Hobbies” show in the fall. There are also two new shows in development, one of which will be on model railroading, scheduled for late 2005.

The growing popularity of the network has translated to increased hobby sales at retail.

“I get reports from the retailers all the time about customers coming in and asking, 'Do you carry?' or 'Can you order me?'—all based off what they saw on TV,” comments Mike Wenig, president of the National Retail Hobby Stores Association.

Bob Jacobsen, owner of Galaxy Hobby in Lynnwood, Wash., has seen people come in and ask for items from the shows. “It's hard to really tell but the added exposure can only help the industry,” Jacobsen says.

R/C—remote control—isn't just about cars and trucks anymore. “Electric airplanes from GWS USA and items from eFlight are really good sellers for me,” Cindy Fuchsen, owner of Al's Hobby Shop in Elmhurst, Ill., tells Playthings.

Companies like Megatech, located in North Bergen, N.J., are seeing their plane and boat lines doing well. “We're trying to recapture the video game generation. I think parents are showing kids that instead of sitting inside you can go out and fly a plane or race a boat.”

Customers are usually asking for electric planes and boats from Wauconda, Ill.-based Du-Bro, as well as Park and Hobby Zone from Horizon Hobby, Champaign, Ill., Jacobsen says.

“While R/C ready to run has really been the trend setter, the die-cast side of the business is doing well too,” says Pat Kozoil, executive director of the Radio Control Hobby Trade Association (RCHTA).

Items like Orange County Choppers from Joy Ride Studios, a division of RC2 based in Oakbrook, Ill., and military die-cast, especially tanks, are selling well. Whether or not the TV exposure of tanks used in the war in Iraq and the popular show on the Discovery Channel called American Chopper are helping these products sell through really can't be measured, but as most retailers note, it hasn't hurt.

“The die-cast military kits are in pretty big demand for us,” says Thomas G. Smith, owner of Jersey Shore Hobby Center in Sea Girt, N.J., It's mostly because of the variety of colors and the amount of detail that goes into them, he adds. Companies like Forces of Valor, based in Rancho Santa Margarita, Calif., and Dragon USA, City of Industry, Calif., are some of the big movers.

Northbrook, Ill.-based Revell-Monogram has embraced die-cast and made it a larger part of the company's product line. “With the advances in the technology used to make die-cast, the amount of detail we can put into product has improved the sales,” comments Edward Sexton, vice president of product development for Revell.

To reflect the growing interest in model hobbies the Toy Industry Association (TIA) is changing how it handles hobbies at Toy Fair. Julie Livingston, a TIA spokeswoman tells Playthings, “According to our 2004 survey, 3,150 Toy Fair buyers expressed interest in the model and hobby product areas. To accommodate the growing demand for this category, TIA is actively pursuing more exhibitors in the radio control sector.” TIA has also renamed the Model and Hobby exhibit area—encompassing radio control and die-cast items—to HobbyTech for the 2005 show.

The gap between what traditional toy stores and hobby stores carry is closing. Many traditional toy stores are merchandising model hobbies but usually don't offer the selection of the traditional hobby retailer. Those customers who are looking for items that can be flown in the backyard, run across the lawn or set out in the bath tub, but also want quality aren't afraid to pay a little more.

Wayne, N.J.-based Toys R Us (TRU) had great success in 2003 with its branded line of Super Slicks mini R/C racers and the brand won the company's President Award for performing beyond expectations. TRU will be launching a new line this fall called Super Slicks Fully Loaded.

“We will continue to carry the brand into 2005 with new licensed cars, six channels, drifting action, turbo boost and working headlights and taillights,” Arlene Wall, global brand director for Toys R Us tells Playthings. “We really aren't in the hobby business but saw that need in our customers and sought to fill it,” she added.

Even stores like Best Buy and Circuit City are carrying R/C cars and trucks. But independent retailers shouldn't mind the mass creeping into hobby territory, retailers tell Playthings.

The availability of hobby products at mass is really only “whetting the whistles of the modern hobbyist,” they concur. When a customer wants something a bit higher end or with more options, it's the independent retailer that meets these needs best, they say.

Marshall Winston, owner of America's Hobby Center in New York, tells Playthings, “I'm glad places like Toys R Us and Best Buy are carrying the ready-to-run items. Those are lower end products and when the customer gets bored and wants something a bit higher end, they come here.”

“We really try to stay with the independent guys since that's where we have the bulk of our business,” says Liam Cusack, marketing executive for Dragon. The company has some exposure in the mass retail outlets but offers limited edition items to the independents to keep the lines very separate. “Our core is the hobby independent and we want to grow them,” he adds.

“Get to know the clubs in the area and coordinate with the schools on different types of projects. Many high schools have shop programs that a retailer might be able to tap into. Checking with the Scouts is also another great way to get kids exposed to model hobbies,” Koziol says.

Revell-Monogram has a “make and take” program for retailers. It's available on the company's Web site, which sells at cost to retailers for $49.95. Included in the pack is one fully packaged model, 24 bagged model kits cars or planes, 24 decal and instruction sheets, 12 screwdrivers for the car models only, two pre-event posters and a helpful hints manual.

“We always look to popular culture, especially TV and movies,” says Greg Miller, vice president of user teams of Racing Champions, Oak Brook, Ill. Keeping things fresh and in touch can bring in the young males at the earlier age, he comments.

By taking in the vehicle trends independent retailers can provide that cool car no one can really afford to have, Miller reasons.

The independent hobby retailer always has something the traditional toy store doesn't, the ability to offer customized service. “Don't be afraid to help, offer to special order an item you may not have. Saying, 'I don't have that,' and walking away is the quickest way to lose a customer,” advises Jersey Shore Hobby Center's Smith.