Trains, Planes & Automobiles

Never forget the baby boomer. That's the mantra of purveyors of trains, collectible cars and airplanes. While kids love those same toys, it's the older generation that introduces youngsters to these categories to fuel interest.

In Europe, one out of every two homes has a model train set. Unfortunately for U.S. retailers, that is not the case in the States. Today's kids have gotten lost in myriad video games and electronic offerings, seemingly forgetting the root play patterns.

And the shift away from traditional toys is due in large part to continuous advances in technology, particularly in the electronics segment of the toy industry, where more traditional play things have also gotten the technology bug.

“What's driving the [train] market is technology,” says Andy Edleman, vice president of marketing, MTH Electric Trains, Columbia, Md. “Today it is high-tech electronics.”

The simple transformer has evolved into a command center using hand-held controllers where many trains can be controlled on the same track. “Rather than the old fixed transformer, today's quality trains utilize wireless hand-helds,” says Edleman. “It really brings in a different level of control. That's what we, as manufacturers, need to do—be innovative, customize trains.”

Tony Castellano, CEO of LGB of America, San Diego, Calif., tells Playthings that the real train enthusiasts gravitate to the MTS—multiple train system—once they get familiar with it. But technology extends beyond multiple trains and multiple track systems.

“There are digital sound systems which will play the actual sound [of an engine]. There are also actual sounds of the chucks.” says Castellano. “And smoke. People love smoke. Today there is better smoke than there has ever been. The technology that goes into a train can't be compared to years ago.”

The typical railroader is a hobby enthusiast who enjoys shopping for the trains as much as playing with them, according to train experts who spoke to Playthings. The railroader is generally male and a baby boomer. Today's train enthusiast has a sizable disposable income, and, most importantly, grandchildren.

“The [train enthusiast] segment has a lot of money to play, has a family, and was the last generation to grow up with trains,” says MTH's Edleman. “What has to take place is having the parents and grandparents build that interest in their kids and grandkids, to drive interest. That will pass down the train hobby to a new generation.”

In-store displays of train packages or individual items may make for neat, space conserving displays, but it isn't going to move product by any means. Live action use and customer interaction is a definite in-store sales driver, according to MTH's Edleman.

“I tell that to retailers all the time,” says Edleman. “If you were selling TVs, would they be turned off? Consumers need to see [trains] in action. They need to create a train environment, an experience.”

Edleman explains that there is no national advertising/exposure for the train segment of toys beyond some very youth-oriented licensed properties, so it's up to the retailer to create that exposure on-site.

LGB of America's Castellano tells Playthings that his company provides seminars at shows, and went around the country giving retailer seminars on new products and selling techniques last year. “By educating the retailer we are doing good for the whole business,” says Castellano.

An interesting retail business strategy was given to Playthings by Marvin Schutzer, owner of The Hobby Shop, Aberdeen, N.J. “Let me tell you, I'm not in love with what I sell; I'm not a hobbyist,” says Schutzer. “But I do a couple of things. First, I listen to what people want; I'm a good listener and businessman. Second, I operate [a train] layout in front of the store. We have people from 2 to 90 who look at it. Third, I have people who work for me here who have knowledge, have experience and are honest. We don't work on commissions here.”

Schutzer says in his operating displays he runs MTH trains and uses Lionel products, because Lionel has the most diverse range of accessories.

While the sexy part of the train business is the larger trains with the advanced bells and whistles, one option to move youngsters into the hobby is offered by Basic Fun, Southhampton, Pa. Its XTS system is easily assembled using modular units, making for easy play and construction for the younger train fans.

“Since it is modular, it can be assembled and disassembled quickly and without any tools,” says Alan Dorfman, CEO of Basic Fun. “It allows for full flexibility in being creative with the sets, without being overwhelming. Boys and girls can actually get to the business of running the trains in a short time.”

Beside the generic track extension pieces, the XTS line has themed pieces that help create neighborhoods, airports, etc. These pieces, when combined with related pieces, create their own story.

“A complete city from downtown area to ball fields to urban neighborhoods to a strip center shopping area—complete with the makeshift skateboard ramp and bike trails behind the center where kids hang out,” says Dorfman.

The trains run on a single AAA battery and last, running non-stop, for six hours. Suggested retail pricing ranges from $2.49 for a simple track tile, $3.99 for themed tiles and $9.99 for a motorized train engine and pull car. Starter sets are pegged at $14.99, and more comprehensive sets are $29.99 and $59.99.

Dorfman says that his company is offering planogram programs for 2-foot, 3-foot and 4-foot sections to give a mix of products and price points, as well as merchandising accessories such as signage and shelf talkers.

“We have found that many retailers concentrate on the starter sets only,” he says. “The more accessories that are offered, the more the customer can build the sets, adding features and expanding outward and upward.”