RC a Dying market?

[RCnoob1999]

Hi all,

I was keen to get into RC retail but anytime i suggest it to people i get the defensive "Whats the point, no one really buys RC cars it's all about drones these day".

Given the existence of this forum that cannot be true but would anyone be able to point me to any data sources about the global RC car market, sales trends etc?
Would any potential retail store just be stocked with Traxxas products?
Should I consider carrying HPI or are they past their prime?

I'm just trying to gather the opinions of enthusiasts here before embarking on this venture.

Appreciate any help.

Thanks.

[Nitrocat]

Well most shops have the Traxxas line of cars
And try to sell them only to make a sale and then hope the customer wants to upgrade from there
HPI is reloading right now and may not be able to put up much of a fight
Then there's Horizion the king but they are on shaky legs to and they make you buy stuff you may not want so it's a tough call on what to sell
Yes hobby shops are dying
But they have died before and always come back
I've been messing with these cars sense 1981 and they have come and gone
And will continue to do so the better ones stay longer
And they usually sell other items as well as cars one of the longer running one sell plastic flowers and craft items
Good luck

[PegLeg]

As with any good investment strategy, a diverse portfolio is the way to go. However, within the narrow R/C industry, retail shops which carry a small variety of higher quality, well-supported products can do reasonably well. My local R/C-only hobby shop is having the best year since they opened over 15 years ago. However, general hobby shops (especially the national chain-type) are not fairing so well. They chain franchise owners are forced to carry a large inventory of products which don't sell very well and the prices are pretty much fixed--cannot hope to compete with internet prices. While a retail hobby shop is probably not the wisest investment, it can be made to support itself/expenses with a small profit so long as the owner is careful to monitor trends and is able to adjust its inventory, quickly and without restriction. A passion for the hobby and specialty knowledge is extremely helpful here. At the very least, listen to what customers are looking for and stay active in the hobby community social networking outlets. I would strongly advise buying vs renting and locate near popular R/C flying/driving areas. Good luck!

[RCnoob1999]

Thanks @Nitrocat and @PegLeg.

I appreciate retail in any form right nigh will be a challenging sector to get into but there's always going to be a core group of RC enthusiasts.

I guess the question is if the RC car market has now bottomed out or will continue to shrink?

Initial conversations i've had seems to imply trying to source HPI is incredible difficult due to some manufacturing issues they had. As much as I would like to carry a variety, would there be much value in even carrying HPI given, like you said Nitrocat, they don't seem like they could put up much of a fight?

Getting a Traxxas account on the other hand is a lot more straightforward and they are definitely well supplied.

[PegLeg]

Originally Posted by RCnoob1999

I appreciate retail in any form right nigh will be a challenging sector to get into but there's always going to be a core group of RC enthusiasts.

I guess the question is if the RC car market has now bottomed out or will continue to shrink?

I would focus on local trends rather than national/international trends. After all, locals will be your core customers in a retail scenario. Talk to folks in local R/C groups and ask questions about 'new faces.'

Also, the word 'always' is not a descriptor I would bank on. The 'core' group may exist, but is it large enough to support a local retailer?

Originally Posted by RCnoob1999

Initial conversations i've had seems to imply trying to source HPI is incredible difficult due to some manufacturing issues they had. As much as I would like to carry a variety, would there be much value in even carrying HPI given, like you said Nitrocat, they don't seem like they could put up much of a fight?

Getting a Traxxas account on the other hand is a lot more straightforward and they are definitely well supplied.

According to some reliable information from a major distibutor, HPI has lately undergone some misfortune mainly due to supply-side theivery--I don't care to elaborate. This has been (or is in the process of being) resolved.

Traxxas is definitely a good brand to carry in retail. It should serve to bring the shop a good bread-and-butter income for new and casual R/C enthusiasts.

[khouji]

Most of the people are buying drones nowadays. All they think about is flying and capturing videos. As far as I'm concerned RC's are things that will last forever. ;)