Die-hard die-cast

Shelf space has constricted while more players are entering the die-cast retail fray; and things don't look to be improving anytime soon. As a retailer, the space devoted to die-cast cars must include quality, innovative licensed products, or that space will be a waste of space.

According to David Kort, senior vice president of Imperial Toy, Los Angeles, “besides dolls, die-cast is as tight as a category can be. It is totally saturated.”

Kort says that consumers may be seeing a little less shelf space dedicated to die-cast, and the reliable products that are well-known and consumer tested will occupy it. To that end, Imperial purchased the Buddy L die-cast line and markets high-profile licenses such as the Hummer H2, Ford F150 and Cadillac Escalade.

“Consumers recognize the Buddy L name from when they were eight or 10 years old,” Says Kort. “[Updating the line with] new licenses just enhance the product.”

Die-cast is a tough business. As Michael Ladin, director of marketing at TootsieToy, Chicago, says, “It's been stable but flat. What you have is a lot of niche players who come and go. The traditional die-cast market is flat.”

Ladin says that “customizing” is the newest trend and is omnipresent in the media, with TV shows like Pimp My Ride. But, like most trends, it's probably a finite one.

“What we do as a company is invest in a license,” says Ladin. “The evergreen licenses that are tried and true are a safer thing. They are not hit and miss. I would tell retailers to base their selection around the tried and true, then mix in some trendy stuff.”

According to Scott Stern, president and CEO of Norscot, Mequon, Wis., “the license is extremely important. With us [and the Caterpillar license], people can see it in use—see the real thing. That makes it much more meaningful.”

That sentiment was echoed by Dave Bell, president of Dyersville, Iowa-based SpecCast: “Our John Deere license performs well throughout the company…everything that John Deere does it does with quality…people think of John Deer and they think quality.”

Sectively seems to be the buzz word for manufacturers. Face it, shelf space for traditional toys is being taken up by the ever-growing electronics category. SpecCast's Bell notes “consumers are looking for more unique product. The market is definitely more selective today than ever”

According to David Davenport, general manager, the Americas, for Chicago-based Corgi-USA, the die-cast market “at best is steady. There are more and more people coming into the [die-cast] market, everyone is trying to get their piece of the pie.”

Davenport also notes that in die-cast, you get what you pay for. The higher the quality, the attention to detail, all add to the suggested retail price. “You want high quality, then pay a higher price,” says Davenport. “You want a low price, you're going to get lower quality.”

Michael Leddy, sales and marketing manager, Boley, Los Angeles, says the niche die-cast business has been good for his company and doesn't expect that to change. Among Boley's winners are the popular Tuner cars, as well as semis and trucks. “That's our business,” says Leddy. “Die-cast is very diverse. Price-point-wise you have the less detailed [mass market], which can carry a very low price point. Then you go all the way up to the collectors market, where you are talking the top price points.”

RC2, Oak Brook, Ill., has caught lightning in a bottle—Johnny Lightning. The Johnny Lightning brand of die-cast has been a staple for RC2 since acquiring it a little more than a year ago, covering a variety of makes, models, designs and themes. Capitalizing on the seemingly unending nostalgia craze is RC2's C.A.R.S.—Johnny Lightning's Classic Authentic Replicas line. The 1:64 scale offers new models in the '73 Pontiac Grand Am, '65 Buick Riviera, '70 Dodge Super Bee and '75 Vega. The line has an SRP of $2.99. Other Johnny Lightning offerings include the highly customized Street Freaks, and Johnny Lightning Pop Culture, with classic licenses such as Coca Cola.

“There is a lot of nostalgia involved with these die-cast products,” says RC2 managing director of vehicles Dell Torgerson. “For some it was their first car, their first break away from home, so to speak. Adding a classic license like Coca Cola, makes it appeal to the Coca Cola collector as well as the car enthusiast.”