Heljan market pressures

[Mammoth]

Saw this shown on Danish TV... Thought it might be of interest.

Quote: Things are not running completely smoothly for the model train company Heljan in Søndersø. The North Funen company normally sells 50,000 model trains in a year, but now people have stopped buying the small trains. In combination with the fact that it can take up to three years and nearly two million kroner to design one train, the owner of Heljan, Kim Nannestad, fears that this may now have consequences for the number of employees.

Sales are down and they are blaming the UK market, Brexit and the Dollar for possibly letting staff go. It's pretty vague mixed messaging though as he says things are not so bad at the end.

Video is here -

Se videoen: Nordfynsk modeltogs-producent presset af krisen | TV2 Fyn

Modeltogsvirksomheden Heljan risikerer at måtte fyre medarbejdere, hvis ikke antallet af ordrer begynder at stige igen.

www.tv2fyn.dk

I don't think they have even announced they are doing a Class 153 single car unit yet...

Mr Mammoth

 

[adrian]

Saw this shown on Danish TV... Thought it might be of interest.

Thanks for the info - not just R-T-R but kit manufacturers are likely to be struggling with similar factors so just highlights the importance of buying items of interest whilst they are available.

As for actual interest - I suspect it'll be limited on WT, not really that keen on covering "vapourware" or even pre-production items. The final production item is likely to be different and peoples perception of a model can often change when they have a physical item in their hands to inspect.

 

[djparkins]

Thanks for the info - not just R-T-R but kit manufacturers are likely to be struggling with similar factors so just highlights the importance of buying items of interest whilst they are available.

As for actual interest - I suspect it'll be limited on WT, not really that keen on covering "vapourware" or even pre-production items. The final production item is likely to be different and peoples perception of a model can often change when they have a physical item in their hands to inspect.

Sorry - I must be thick - no don't answer that Adrian! My question actually is what exactly is vapourware please?

 

[adrian]

Sorry - I must be thick - no don't answer that Adrian! My question actually is what exactly is vapourware please?

It's not being thick if you've not seen it before. It's a term borrowed from software engineering side and refers simply to stuff that is just "virtual". A manufacturer might actually claim to be producing a model, sometimes to discourage other manufacturers for doing something similar, they maybe even get as far as a few computer aid sketches but that is as far as it gets - just a few ideas in a computer or sketches. i.e. nothing more than vapour.

 

[Longbow]

From an O Gauge perspective, the abundant discounting of their stuff certainly suggests all is not well. And their QC issues, most notably with their OEM work for Hattons, must also have hurt sales.

 

[Jackie Kneeshaw]

Following the thread entitled, Heljan reveals they are struggling with UK R-T-R market

I decided in my capacity as Chairman of Events & Trade Manager for the Gauge O Guild to contact Kim Nannestad

An official message back from Kim Nannestad at Heljan says:

"The channel is a local town news station/website and after lengthy filming and conversations have managed to edit it into something which has lost the context of the interviews. After Heljan ceased production on site and with models being produced in China part of the site was converted into a radio control retail business and it is this that has suffered most with reduced opening and staff levels.

We can for sure confirm; "We are not in crisis and the model railways side is very robust".

Hope this helps.
Med venlig hilsen
Mit freundlichen Grüßen,
Best regards,
Kim Nannestad


Please be sure to circulate Kim's comments if you find others sharing the news item and let's nip any rumours in the bud.

Thank you

Jackie

 

[adrian]

[UPDATE - for info]
Just to close the circle on this, Jackie Kneeshaw as a Guild representative contacted Heljan. Kim's response is included below for information.

An official message back from Kim Nannestad at Heljan


"The channel is a local town news station/website and after lengthy filming and conversations have managed to edit it into something which has lost the context of the interviews. After Heljan ceased production on site and with models being produced in China part of the site was converted into a radio control retail business and it is this that has suffered most with reduced opening and staff levels.

We can for sure confirm; "We are not in crisis and the model railways side is very robust".

Hope this helps.
Med venlig hilsen
Mit freundlichen Grüßen,
Best regards,
Kim Nannestad


Please be sure to circulate Kim's comments if you find others sharing the news item and let's nip any rumours in the bud.

Thank you

Jackie