Who decides demand?
Probing questions at Wings900 (
https://www.wings900.com/vb/1-500-scale-discussion/148184-herpa-mysteries-8.html) regarding influential variables on demand of 1:500-scale herpa models have initiated comprehensive investigations. At this stage the main findings can be summarised as follows:
There are luxury goods (such as 1:200- or 1:400-scale models), demand for which is usually elastic, i.e. dependent not only on number of consumers and availability but also on income, price-performance ratio, tastes and preferences, advertisement and other boring things.
And then there are mystery goods, demand for which is often opaque as for example 1:500-scale models under »herpa« brand.
Now who decides demand for 1:500-scale herpa-branded products?
Unfortunately there is a great deal of uncertainty and different, even sometimes conflicting rumours.
Airlines: Some airliners order models that are sold exclusively on board or at their shops, some airlines block model-production because they simply don’t care and other airlines claim »exclusive« conditions, which seem to transcend normal benchmarks and are therefore not conceded. It can be summarized that airlines can have positive or negative impact on herpa’s product range and thus influence supply-demand ratio. Unfortunately it was not possible to quantify in greater detail the extent of the »airline-effect« but it is expected to be in the lower single-digit percentage range.
herpa customers: If you have in mind the since many years declining number of collectors, who to varying degrees are still willing to spend money on herpa-branded products, what do you expect? Without doubt, some of these people are tough! But would you draw any demand conclusions from their habits? A safe source has reported that herpa itself is continually faced with new questions.
herpa’s marketing team: Targeted marketing is often considered crucial for demand generation and it is amazing to what limited extent it is used by many die cast model producers. But this general statement does not apply to herpa, which in terms of marketing is ahead of any competition. herpa in 1:500-scale over the last 20 years has been able to create a long-term relationship not only with their retailers but with the airline industry and many collectors. And this in spite repeated production delays, production chain breakdowns and quality inconsistencies. In a difficult environment herpa’s marketing and customer service may not have been able to compensate every adverse market or production development in the last 20 years but should have been an essential factor to stay in business. Because herpa is more than just a 1:500-scale model maker and has with certain industrial and commercial sectors ties that go back over more than 30 years, it knows better than any competitor that promotional collectible replicas can generate additional income (sales + licensing) in the industry. But as other (and formerly digital) marketing technologies have come into focus in recent years the marketing opportunities through collectible models are lately often overlooked and underestimated.
herpa lenders: herpa since 2009 is owned by Fürst Andreas zu Leiningen. Is has never been made official whether and if at all Fürst Andreas zu Leiningen actively influences herpa’s business decisions.
Lufthansa: Lufthansa is herpa’s oldest and strongest partner in the airline industry and has ordered the production of many exclusive models over the last 20 years. There is no reason to believe that Lufthansa has ever taken advantage of their special relationship to influence »demand« in any way other than the above mentioned effects.
Mrs. Merkel: Mrs. Merkel cares about the 1:500-scale market as much as about…. Little is known about the hobbies of her husband.
Other possible rumours: The influence of Brussels seems to be limited to a warning (»Not suitable for Children below 14 years«).