Steven Chong
First Sergeant
- Joined
- Aug 25, 2005
- Messages
- 1,365
Dear Forum Members,
Before I summarize Andy's talk, I would like to thank Shannon and Peter Reuss, Mike and Myszka Hall and Bill Sager for hosting the dinner -- I apologize, but there was another host but I missed his name.
Andy first spoke about the general toy soldier industry. Unlike some, he felt there was great potential. He disclosed that K&C for the last 10 years increased its business 30 to 40% EACH year! He did not think K&C could be getting this type of increases unless it was bringing new collectors into the hobby. In 2007, Andy's intent is to make K&C more known to non-collectors by doing more advertising. "K&C will continue to improve." He then mentioned Figarti, Honour Bound and the new Britains were all companies that were also improving.
Andy then opened the floor for questions:
1) Will you make more engineers and service troops? While he liked the ideas and understood the rear area troops comprised a large part of any army, Andy had commercial concerns. Most of the time, K&C needs to sell 1000 to 2000 sets for an idea to be worthwhile. He would let others do it.
2) Advertising? Andy mentioned he was looking into advertising on the History Channel, mentioning that it averaged about 1 million viewers and if only .25% of these viewers discovered K&C via advertising, that would be 2500 new collectors. K&C also considering advertising in non-toy soldier magazines, and joint venture advertising with dealers similar to what it does with K&C UK.
3) Join other toy soldier manufacturers to do general advertising about the hobby? Did not want to do advertising with its competitors.
4) Question about Crusader Fort displayed at Chicago Show? The castle is a prototype and has been sent up to the design team in China, with instructions to do something modular and not as big. They have samples which are very good and are now in the process of costing it out. Transportation cost is the big problem now. Expects it in the 1st quarter of 2007.
5) More dioramas? Andy has seen a change in the hobby with more interest in dioramas or scenic pieces to display with figures. K&C originally tried more three-dimensional buildings, then tried buildings like the French street facade. Now K&C are going back to more 3D buildings and they are working on European style buildings which can be used for time periods from 1700's to WWII.
6) General question about production process? Andy stated he would like to do one completely new series per year though this year K&C launched RTA and Crusaders. Plans to do Crusaders started in 2/2006. Many dealers and collectors had asked for a medievel line, but Andy wanted to do things a "wee bit different." Crusaders, no one else but the Russians were doing it. Thought of Agincourt, William Wallace, Robert the Bruce, but picked Crusaders because it had the most relevance to the current events in the Middle East. After decision made, it took 6-8 weeks to sketch out ideas, decide on color, and to decide what is the story being told? K&C wants to tell a story with all the figures contributing to it. Andy had seen Kingdom of Heaven but wanted to do it differently, then had the idea of Crusaders attacking Saracens defending a castle. With the story line determined, 3 more weeks to sketch out ideas, 2 weeks to get 1st 12 rough castings for comments, 12 more in another 2 weeks, then finally 40 by another month's time. Crusaders took 5 months from concept to production. The average is 5 to 6 months.
Continue to do single sets? Single sets will continue. In the early years, K&C followed the industry norm by doing sets with 5 marching and 1 officer. When K&C first changed to mixed sets, someone would always want only one figure from the set. With positive feedback from dealers, the decision to package figures individually has helped make figures more affordable, bringing in new collectors. Decision for Rev and Nap made early, while WWII took longer because rifle squads had more troops.
German cavalry? If they did, K&C would do something different. Biggest problem is fitting everything into production schedule. Can't do everything.
Andy then mentioned K&C had several finished projects ready for masters but did not want to reveal anything that could be used by his competitors.
What keeps you up (worrying)? Andy understood this question was about competition. Andy mentioned Britians and Honour Bound, then stated biggest was Figarti. Everyone in China knows the sharpest cookies are from Shanghai. Figarti had come a long way in a short time. He mentioned Figarti's new Tiger tank and stated he really wanted to see it. Mentioned that Figarti had achieved the "WOW" factor, but that K&C was not afraid of the challenge. "They got a jump on me, but I can also do it [to them]. K&C knows how to react. Watch this space." Andy concluded that competition in a capitalist society was healthy and that the companies in China had a huge advantage because of its people's work ethic and its ability to produce things fast.
Before I summarize Andy's talk, I would like to thank Shannon and Peter Reuss, Mike and Myszka Hall and Bill Sager for hosting the dinner -- I apologize, but there was another host but I missed his name.
Andy first spoke about the general toy soldier industry. Unlike some, he felt there was great potential. He disclosed that K&C for the last 10 years increased its business 30 to 40% EACH year! He did not think K&C could be getting this type of increases unless it was bringing new collectors into the hobby. In 2007, Andy's intent is to make K&C more known to non-collectors by doing more advertising. "K&C will continue to improve." He then mentioned Figarti, Honour Bound and the new Britains were all companies that were also improving.
Andy then opened the floor for questions:
1) Will you make more engineers and service troops? While he liked the ideas and understood the rear area troops comprised a large part of any army, Andy had commercial concerns. Most of the time, K&C needs to sell 1000 to 2000 sets for an idea to be worthwhile. He would let others do it.
2) Advertising? Andy mentioned he was looking into advertising on the History Channel, mentioning that it averaged about 1 million viewers and if only .25% of these viewers discovered K&C via advertising, that would be 2500 new collectors. K&C also considering advertising in non-toy soldier magazines, and joint venture advertising with dealers similar to what it does with K&C UK.
3) Join other toy soldier manufacturers to do general advertising about the hobby? Did not want to do advertising with its competitors.
4) Question about Crusader Fort displayed at Chicago Show? The castle is a prototype and has been sent up to the design team in China, with instructions to do something modular and not as big. They have samples which are very good and are now in the process of costing it out. Transportation cost is the big problem now. Expects it in the 1st quarter of 2007.
5) More dioramas? Andy has seen a change in the hobby with more interest in dioramas or scenic pieces to display with figures. K&C originally tried more three-dimensional buildings, then tried buildings like the French street facade. Now K&C are going back to more 3D buildings and they are working on European style buildings which can be used for time periods from 1700's to WWII.
6) General question about production process? Andy stated he would like to do one completely new series per year though this year K&C launched RTA and Crusaders. Plans to do Crusaders started in 2/2006. Many dealers and collectors had asked for a medievel line, but Andy wanted to do things a "wee bit different." Crusaders, no one else but the Russians were doing it. Thought of Agincourt, William Wallace, Robert the Bruce, but picked Crusaders because it had the most relevance to the current events in the Middle East. After decision made, it took 6-8 weeks to sketch out ideas, decide on color, and to decide what is the story being told? K&C wants to tell a story with all the figures contributing to it. Andy had seen Kingdom of Heaven but wanted to do it differently, then had the idea of Crusaders attacking Saracens defending a castle. With the story line determined, 3 more weeks to sketch out ideas, 2 weeks to get 1st 12 rough castings for comments, 12 more in another 2 weeks, then finally 40 by another month's time. Crusaders took 5 months from concept to production. The average is 5 to 6 months.
Continue to do single sets? Single sets will continue. In the early years, K&C followed the industry norm by doing sets with 5 marching and 1 officer. When K&C first changed to mixed sets, someone would always want only one figure from the set. With positive feedback from dealers, the decision to package figures individually has helped make figures more affordable, bringing in new collectors. Decision for Rev and Nap made early, while WWII took longer because rifle squads had more troops.
German cavalry? If they did, K&C would do something different. Biggest problem is fitting everything into production schedule. Can't do everything.
Andy then mentioned K&C had several finished projects ready for masters but did not want to reveal anything that could be used by his competitors.
What keeps you up (worrying)? Andy understood this question was about competition. Andy mentioned Britians and Honour Bound, then stated biggest was Figarti. Everyone in China knows the sharpest cookies are from Shanghai. Figarti had come a long way in a short time. He mentioned Figarti's new Tiger tank and stated he really wanted to see it. Mentioned that Figarti had achieved the "WOW" factor, but that K&C was not afraid of the challenge. "They got a jump on me, but I can also do it [to them]. K&C knows how to react. Watch this space." Andy concluded that competition in a capitalist society was healthy and that the companies in China had a huge advantage because of its people's work ethic and its ability to produce things fast.
