The Unstoppable Rise of Lego: How the Toy Giant is Defying Industry Trends
A Bright Spot in a Slumping Industry
While the toy industry is facing its second consecutive year of decline, one company is bucking the trend: Lego. The Danish toy giant has seen its revenue jump 13% in the first half of the year, snapping up market share and driving growth in the industry.
A Recipe for Success
So, what’s behind Lego’s success? According to Eric Handler, managing director at Roth MKM, “Lego has consistently bucked the trend the past few years.” The company’s strategy has involved diversifying its customer base, tapping into the digital gaming world, and partnering with studios and streamers to bring Lego content to consumers.
Licensing: A Key to Success
Licensing has long been an important strategy for toy companies, and Lego is no exception. By partnering with popular franchises like Star Wars, Harry Potter, and Marvel, Lego has been able to tap into existing fan bases and create engaging products that appeal to a wide range of consumers.
Beyond Franchises: Catering to New Audiences
But Lego isn’t stopping at franchise-based sets. The company has worked to design different types of sets that cater to new audiences, including cityscape sets, brick versions of famous paintings, and a line of botanicals. This approach has allowed Lego to attract new consumers and drive revenue.
The Power of Partnerships
Lego’s partnerships with Formula 1, Disney+, and Epic Games’ Fortnite have also been key to its success. These partnerships have allowed the company to expand beyond its retail shelf space, create new experiences for consumers, and drive incremental retail purchases.
A Focus on Digitalization and Interactivity
Looking ahead, Lego is focused on digitalization and interactivity. The company aims to create experiences that go beyond physical sets, allowing consumers to engage with the brand in new and innovative ways.
Meeting Kids Where They Are
At the heart of Lego’s strategy is a focus on meeting kids where they are. By being relevant to children and occupying the spaces they already inhabit, Lego has been able to translate its digital efforts back into sales of physical Lego kits.
A Bright Future Ahead
With several theatrical projects in development and a continued focus on digitalization and interactivity, Lego is poised for continued success. As Julia Goldin, chief product and marketing officer at Lego, notes, “We have to remember that kids, they grow up. So, there’s a new generation coming all the time. I think the next five years we’ll see even more digitalization and interactivity coming into the different experiences that we can create.”
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