Die-cast car craze creates new licensing opportunities - Toys - Brief Article

DSN Retailing Today, July 29, 2002 by Molly Prior

Though parents and perhaps toy retailers would hardly know it exists, any teenager with a driver's license is most likely hip to the underground world of import car street racing. Kids tinkering with their first beloved automobiles dates back 50 years ago to the days of hot-rodders. Modern day hot-rodders opt for more economical imported cars with Japanese nameplates--suping up their Honda Civics and Acura Integras with edgy graphics, spoilers, clear taillights and suspension upgrades.

Universal Pictures' film "The Fast and the Furious" exposed the world of the import car phenomenon to the masses. The film grossed $145 million at the box office and attracted the attention of toy manufacturers looking to piggyback on the bleeding-edge craze. A sequel is scheduled for release in 2003, and Universal is putting the gears in motion for worldwide licensing and promotional programs.

"The adrenaline is still pumping from the first movie," said Tim Rothwell, senior vp of marketing and merchandising for Universal. "We are seeking top manufacturers and brands in the compact car and performance market to develop long-term co-branded licensed products."

Toy companies, such as X Concepts and Spin Master Toys, famed for having their ears to the street, heard the rumblings of the trend well before "The Fast and the Furious," but admit the movie pushed production plans into overdrive.

After watching the retail market for compact performance cars surge from $295 million in 1997 to $1.5 billion in 2001, youth marketer Todd Ballard came to X Concepts with the idea to manufacturer die-cast import cars featuring licenses from the hottest automotive and aftermarket companies. X Concepts got rolling on the idea, puffing Ballard in-house to develop it, but production pushed the launch back a year, which, in the long run, may have helped, said Ballard, given the impact of "The Fast and the Furious."

In June, X Concepts launched its line of 1143 scale die-cast car and truck collectibles, Modifiers, at Toys "R" Us. Each car retails for $14.99 and features officially licensed performance products from manufacturers, such as AEM, Volk, Eibach, Tanabe, Yokohama, Neuspeed, Kaminari and Greddy. Each of the parts--engines, hoods, seats, rear windows, wheels, exhaust systems and tires-are interchangeable. The first series includes a Honda Civic Si and Accord Coupe, Acura Integra Type R and GS-R, Mitsubishi Eclipse GSX, Ford F-150 and Cadillac Escalade.

While car enthusiasts could find individual die-cast tuner--or customized--cars at toy retailers, Spin Master Toys credits itself with being first to offer retailers a full program.

Spin Master rolled out its $9.99 Metal Maxx Street Rockets vehicles nearly six months ago. Each vehicle, namely the Honda Civic, Ford Focus and Acura Integra, is suped up with working UFO underchassis lights, drop-down suspension and five Wings West parts, such as bumpers, rockers and spoiler. Each vehicle is sponsored by aftermarket parts manufacturers, such as Toyo Tires, ViTek, Katzkin, Modem Image and Sebring Tuning.

Spin Master began looking into the tuner trend while developing Flick Trix, replicas of extreme sports vehicles launched in 2000, and recruited its Flick Trix and Metal Maxx brand manager, Conor Forkan, from a bike shop in Toronto.

While Forkan reminds kids have been suping up their cars since the '50s, he added in the last 10 years, imports have been the car of choice for teenagers. To them, cars represent independence, so they're willing to pour their discretionary income into suping them up, he said. Forkan admits it took a little finesse to convince retailers--not that familiar with tuner cars--to carry a line featuring import, rather than domestic, cars.

Under its Hot Wheels brand, Mattel will soon drive the tuner car trend by catering to an older crowd. Come October, it will launch its first-ever customized die-cast assembly kits, Tunerz. The 1:18-scale Tunerz feature authentic models, retailing for $24.99, and are designed for model kit builders aged 14 and up. The vehicles come with an opening engine compartment and doors, customizable parts and a sticker kit. Available models are a Honda Civic, Honda Prelude and Acura Integra.

Like X Concepts and Spin Master, Hot Wheels has recruited experts in the import car world to develop its line. "We work closely with influential members of the automotive community," said senior brand manager Chris Corman. "In addition, many of the Hot Wheels design staff has worked for automotive companies."

This holiday, Hot Wheels has partnered with Target, WalMart, and several grocery and drug stores for in-store promotions. It also has a couple of programs planned with Advanced Auto Parts and Pep Boys.

Cars, said Ballard, are as much a part of kids' culture as music, fashion and extreme sports. Younger kids have picked up on the trend by watching their older brothers tinker with their cars, and by spotting suped imports on the road. "Customization of cars has always been a popular activity for young adults. Currently it's tuner cars and we foresee that trend continuing for a while," said Corman of Hot Wheels.