- Lego, the company famous for its colorful plastic bricks is back to sales growth last year after a decade of double-digit increases came to a rare halt in 2017.
- Lego competes with the likes of Hasbro and Mattel Inc. which makes Barbie in the market, mentioned on Tuesday sales rose 4 percent between January and June to 14.8 billion Danish crowns ($2.2 billion).
The Danish Toymaker Lego continued its turnaround drive with investments in China, India, the internet and new stores. Models of superheroes and villains from Marvel’s “Avengers” helped the company lift their first-half sales.
Lego, the company famous for its colorful plastic bricks is back to sales growth last year after a decade of double-digit increases came to a rare halt in 2017.
Lego competes with the likes of Hasbro and Mattel Inc. which makes Barbie in the market, mentioned on Tuesday sales rose 4 percent between January and June to 14.8 billion Danish crowns ($2.2 billion). If calculated in local currencies, the sales grew by 2 percent
The company, which competes with the likes of Barbie maker Mattel Inc and Hasbro, said on Tuesday sales rose 4% between January and June to 14.8 billion Danish crowns ($2.2 billion). In local currencies, sales grew 2%.
The company also mentioned that it has improved in the largest markets, with double-digit growth in China and single-digit growth in the United States and Western Europe.
Niels Christiansen who was appointed as chief executive in 2017 said that the company has matched the ambitions for single-digit growth over the full year and he believes that the company will deliver that.
Although there was a decline in the operating profit which was recorded at 16 percent to 3.5 billion crowns due to the new investments made by the company.
Christiansen also said that the company is moving rapidly towards e-commerce and some special retail experiences. It takes a lot from you what you can do digitally, IT-wise and store-wise. In the end, it’s battle over for the kids to have time to play in.
The first half saw the lego versions of Marvel’s “Avengers” characters such as Captain America, Iron Man and Thanos topped the seller’s chart while Star Wars-themed products and the company’s older building sets like Lego Technic and City also contributed to growth, as said by the company.
The company plans to add 35 shops in China by the end of the year despite a shift towards online sales, making it a total of more than 140 in China and almost 600 shops across the globe.
“You cannot say the physical experience is not necessary, just because more is bought online,” Christiansen said, underlining the importance of “try-advertising”, where kids test out new products in stores.
“It is really important in a country like China, where you have to build the brand. It’s a physical product.”
Christiansen also hopeful about the success in India where it sells through third-party stores. It has no recent plans to open brick and mortar stores in India yet.
aid he hoped Lego’s push into India, where it currently sells via third party stores, would mirror its success in China, though it has not decided whether to open its own shops there yet.
With Reliance also acquiring Hamley’s in India, the fight in the Indian toy market is going to be really interesting.