The children’s shoes are brightly colored, and if they are not enough, you can also buy matching T-shirts, socks, pants and jogging suits. Two world brands have teamed up here, Lego and Adidas. The world market leader in toys and number two in the world of sporting goods.
According to experts, such partnerships are a decisive factor in Lego’s business. On Wednesday, the family business from Billund, Denmark, reported its greatest growth in five years. Last year sales increased by 13 percent to just under 5.9 billion euros, while profits even rose by 19 percent to 1.73 billion euros. Worldwide and in the twelve largest countries, the Danes were able to increase their share of the toy market.
The growth is the result of “major investments in the past two years with the aim of achieving long-term growth,” said CEO Niels Christiansen. The pandemic also fueled business, because the more people are at home, the more they look for variety and something to do. Also with children or grandchildren.
Lego is increasingly attracting adult customers
Lego has succeeded in turning from a pure children’s toy to a cross-generational leisure activity. The Lego brick, said CEO Niels Christiansen, would also be at the center of the business model in the future. “But today’s kids are growing up in a digital world, mixing online and physical gaming with ease.” The best example is the Super Mario product line, launched in August 2020 as a tangible version of the Nintendo plumber of the same name with a mustache, red cap and blue dungarees. Lego has been offering corresponding kits since August 2020. Lego Vidiyo, a mixture of chanting game and blocks, developed from a cooperation with Universal Music, also falls into this category.
At the same time, Lego is consistently continuing what began more than 20 years ago with Star Wars as the first brand partnership. Successful characters and fantasy worlds from the film world are adapted into the building block reality. This increasingly attracts adult customers. There are no indications that the block boom will soon abate. In Germany, Lego was voted the most popular toy brand for the third time in a row in 2020.
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