Matrix trading statement
“As representatives of the specialty dealers, you have known the following for a long time: In the most popular model railroad scale, H0 1:87, worlds often collide with one another – on the one side the faction with the alternating current system – on the other side the faction represented by fans of direct current systems. Both groups of consumers have a different approach to their hobby and different expectations about model railroad products: While the alternating current consumer, i.e. the typical Märklin buyer, values models constructed of metal and often wants full compatibility with older track layouts, the direct current H0 model railroader, i.e. your potential Trix customer, strives by contrast for the highest possible level of prototypical accuracy, uncompromising translation of the prototype into the model in 1:87 – particularly in the scale for the length, and he wants the freedom of choice for a locomotive's digital features. Silky smooth running characteristics and a smooth coasting effect in analog operation are also important for him. Trix H0 is therefore being repositioned. In the future, the assortment will have many more models specially developed for the requirements of direct current customers. The ÖBB class 1012 high performance electric locomotive and the Dutch/Swiss Ram TEE powered rail car train in 2007 are the prelude to this new series. In 2008, it will continue with great strides and many very interesting models. At the same time we have adjusted our brand's look, we have also given our customers an exclusive preview of the first of these extraordinary Trix new items for 2008 at the Model Railroad Meet in Göppingen and the model railroad shows* in Bern, Leipzig, Vienna, Friedrichshafen, Stuttgart, and Munich. All of the models feature five-pole DC motors with skewed armatures and a flywheel. A 21-pin digital connector offers the option of connections to the digital world. Many separately applied parts and an uncompromising scale translation of the prototype into the model, headlights with warm white LED's, and detailed fittings even inside the locomotive are additional features on these models that have been specially developed for DC model railroaders. *Please note that Dortmund is not mentioned. Does this mean that Trix will become the brand leader for prototypical realism with scale length coaches, more accurate models etc. If it is the latter, then this is a good move for Matrix.

Isn’t it nice to be deemed as being the “typical Märklin modeller”. By Märklin’s logic, can we expect to see a whole lot of tin plate stock in the 2008 new items brochure? Well done to Märklin for finally (?) recognising that there is a branch of the hobby that does want scale equipment. Märklin need to also recognise that there some (a lot) of us out there that do not need backward compatibility. Sure if you use M track you are going to have some problems with some of the newer items (my Brawa class 75 runs like a dog on M track) but, surely the number of people who use 360mm radius are falling by the wayside. My minimum radius is 437mm and scale length stock runs through it ok (s curves look horrible!). I will be extremely annoyed (and that is an understatement) if Märklin do not make these Trix locomotives for AC as well. John

This is the most sensible thing I have heard from the land of Matrix yet, and I applaud it as well. They will lose a little economy of scale since more of the Trix equipment will have to be designed and built separately from Märklin's models, but the gains in producing accurate models for the prototype-oriented modeller will be substantial. The compromises required to serve both camps were difficult for someone like myself to accept. Since the introduction of items like the scale Ram TEE set, my interest in Trix models has been on the rise. I look forward to seeing what they come up with next. Jurgen

I regard it as a very positive development and look forward to seing this years offerings.

One could argue that people who use and contribute to model railway forums are a minority. Sure they are very vocal within the forum but are they representative of the hobby as a whole? Knightsbridge have signalled that the MaTrix merger while not necessarily at an end, it is at least going to be more a two brothers relationship than its current father son relationship. We can but hope it doesn’t turn into an Adidas and Puma relationship! The upside is that we will potentially see Trix truly take off once again, and continue its fine model building tradition. Märklin will stick to its AC following and while there may be less detailed models, they will still be bought by Märklinists in saleable quantities. I suppose that when you stand back, I am not your typical Märklin modeller. I belong to a club where the majority of its members only own Märklin equipment. Even fewer model a specific Epoch. I am very Epoch and region specific. Just because Märklin or any other manufacturer for that matter produces an item for my Epoch, if it is unlikely to have run in my region, I will not buy it. For so long “we” have wanted variety, whether this eventuates remains to be seen. It will be exciting to see what Trix comes out with. But it is doubtful that they will be able to please all the people all the time. John

Well I just wonder where all this is leading....I think it's a sensible move to distance Trix further from Maerklin - I have always been rather selective with Trix anyway, but the marriage didn't seem to bring many benefits to me as a GS modeller. I find it interesting that it's viewed that the market positioning of Maerklin should be quite so different from that of Trix, and the importance placed on backward compatibility; I'm surprised at the implication that Maerklin will produce models in metal and be fully backwards compatible (both which will inevitably lead to compromises in operation and scale fidelity) - I don't quite get the point here-why SHOULD these unnecesary constraints be imposed? these days shouldn't every consumer's expectations to be to accept models that are not compromised in any way? Are we really saying there are two types of consumer for model raileays? One that expects trueness to scale and realism and the other that expects robustness and perhaps more "traditional" qualities? I'm just a bit worried that Maerklin/Trix are unclear who their customers are... maybe I'm wrong, but they seem to be moving from a "one size fits all" approach (ie great commonality between Maerklin and Trix products, which plainly doesn't really satisfy anyone) to one of (perhaps artificially) identifying customer groups with different values and addressing each of their perceived needs... this will be OK if they know their customers well enough, but I remain to be convinced that they do. Just think back to the Roco debacle, and the damage done by loss of focus on their customers, and compare that with Brawa, who seem to be doing pretty well charging premium prices for high quality products. Yes, I hope this move improves the prospects for both Trix and Maerklin, but it's only part of the story... it also needs to produce products that people want to buy-I hope Nuernburg will demonstrate that they're going to be more innovative and adventurous with their choice of new models, but I can't say I'm holding out much hope from what's been revealed so far.

Hi Tim, I dont know if its the M-track lot or the 360mm radius group! Either way Märklinists have different views about fidelity. The majority just want Märklin trains, and who cares if they are to scale or not! Guess I am part of the 0.5% of Märklinists that does want scale trains. Are we not lucky that Brawa serve us well. John

There are more of us than you think, but it's not just scale (though that's very important). There's also level of detail, performance, and the modeled prototype. p. Guess I am part of the 0.5% of Märklinists that does want scale trains. Are we not lucky that Brawa serve us well. John

Märklin is a very peculiar creature, since it attempts to position itself as a premium brand and yet undermines its products by perpetuating archaic features like deep flanges and tight curve radii. They want to be different, so they keep the strange drivetrains and motors and incompatible digital system and all the rest (to say nothing of the three-rail). I may be wrong, but I'm not convinced that Märklinists demand these things, but rather that the marketers think they are desirable to help keep the market captive. They should just stop producing the silly sharp radius track with the mega-flangeways so their equipment doesn't have to accommodate them. Trix started out with the same sorts of features but managed to leave them behind. Maybe the new Trix will help lead them into the 21st century; but even if they don't, at least Trix will hopefully be free to compete on an even playing field without the Märklin-isms plaguing their products. Jurgen

Jurgen, Who says Marklins digital system is incompatible? So it is not NMRA compliant, but do the Europeans really care? ESU, Uhlenbrock, Zimo etc decoders and control equipment all work with Marklin equipment and decoders. Considering their market penetration Marklin could rightly say that the other (ie US manufacturers) equipment is incompatible. Just because the American market wants a socket so that you can plug any decoder into a loco does not make it the be all and end all. I note that Roco, Fleishmann, brawa etc, all sell loco's with chips preinstalled. I would rather purchase a locomotive that is ready to drop onto the track with sound installed than buy a locomotive, and a decoder and then have to install it, tune the decoder to the motor etc. John

Hi Peter, If there were more of us (specifically in German!) Marklin might make more prototypical stuff. That being said we should not complain too much as if you can get passed the manufacturer badge there is a lot of neat stuff out there. Now that Trix will no longer be effectively re-issuing Marklin product there is hopefully greater scope for new and much wanted items. John

Jurgen, I think you're probably correct that Maerklin produces what it does because of perceptions of what the customer wants which are not necessarily correct; Here in the UK, about 20-25 years ago I remember clearly that Hornby stated that it was making products for the toy market rather than for modellers, as a defence for the quality of its products at the time. I remember it vividly because that's what made me trade my 26 Hornby locos for a secondhand Fleichmann V100, a secondhand Liliput 1042.5 and a new Roco E91...so thanks for that, Hornby. But look at their products now, and their focus (successfully) with their new releases on the hobby/adult market.... I wonder what happened to all those toy sales? Although it's in everyone's interests to have healthy companies supplying our hobby, and I hope Maerklin and Trix prosper, their positioning does raise a number of issues: 1) In a shrinking market, is there room for another mass-market producer as Trix seems to be repositioned? We already have Roco and Fleischmann, with Liliput and Lima in there somewhere too, not to mention the pressure coming from China through Modern Gala- one would assume that their management would expect Trix to increase its market share, but I would think that without a particularly good range of unique models, which I don't feel Trix has, it's going to be an uphill struggle for them. If they produce Trix in China, would this not undermine one of Trix' key values and selling points of being a German manufacturer? 2) Even given its loyal following, has the Maerklin system "had its day?" Other manufacturers (Fleichmann, Brawa, Roco) already produce AC models based on their DC range; it'd be interesting to see relatively how successful their products were - ie there's obviously a significant tranche of Maerklin modellers who will buy this stuff and who are not particularly interested in M-Track or 360mm radius curves- ie have Maerklin really got it right with their market positioning? 3) With the one company owning both Maerklin and Trix, who gets the money for new products? Will Trix be starved of the investment it needs to sustain a competitive market position (ie quite a lot of new models across the range) at the expense of propping up Maerklin? or vice-versa? 4) Can this strategy be successful without also addressing another frequent criticism of the group of not being innovative or imaginative in the choice of new releases? I would suggest that finding prototypes that the customer has an incentive to buy (ie there isn't already a reasonable model available from a competitor) is key. Without addressing this issue as well, I don't think the new positioning will be successful. 5) Could this be the precursor to the end of one of the two ranges? adopting different strategies for the two brands might be the way the management both finds out where the profits are, and defines where the development effort goes. It seems to me to be a pretty high risk strategy to adopt two different approaches for the two parts of the business- you obviously wouldn't do it if both parts were generating satisfactory profits, and you wouldn't do it if you were sure of where your strengths lay and were focusing on them. My view is that the strategy adopted for Trix may produce profits, but there isn't really the room for them to realise large profits or market gains because of the competitiveness of the market, and the relative paucity of good and unique models in the range. Maerklin has traditionally survived by its differences and incompatibility with other products; although this business model has been successful for many years, I just question whether it still holds, with other manufacturers increasingly producing AC models, and Maerklin's failure to address the premium quality market with appropriate products (quality is the key here, not price-Maerklin have produced over the years, in my opinion, a number of high priced items which have not delivered on quality).

Which is what? Märklin is just another brand in the Kingsbridge family of brands that includes Trix, LGB, and whatever else they bought up and no one noticed... p. Maybe we are witnessing the initial stages of the sale of Trix so that Maerklin can return to core business?

Jurgen, Couldn't be put in better words than that. Case resolved. E.Baykal