A boy selects a boxed Lego A/S toy at an E-Mart Co. store, a subsidiary of Shinsegae Co., in Incheon, South Korea, on Saturday, Dec. 21, 2013.
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There would possibly be shrimp doubt that the Lego heed has benefited from folks spending extra time at home at some level of the pandemic, however the firm is a hit sleek industry in China as smartly.
Lego talked about Wednesday that its user sales jumped 21% very finest 300 and sixty five days, the implications of a broader product differ, e-commerce investments paying off and a surge of utter in China.
“It’s in actuality a outcome of a expansive effort by the complete organization, especially with the complete things we now delight in needed to contend with all 300 and sixty five days long,” CEO Niels Christiansen told CNBC.
Due to the the pandemic, Lego used to be compelled to shut manufacturing net sites in Mexico and China, temporarily shutter some retail locations and saw its distribution costs upward thrust as shipping turned extra costly.
No matter these headwinds, the privately held Danish toymaker reported income for the 300 and sixty five days that topped 43.7 billion Danish krone, or about US$6.99 billion, up 13% as compared with 2019.
“Our study does present that extra households are constructing collectively,” he talked about.
Whereas the pandemic would possibly perchance additionally delight in encouraged customers to fetch extra Lego sets to stream the time in lockdown, Christiansen talked about, it be now not the finest cause sales were so sturdy at some level of the 300 and sixty five days. The firm is reaping the advantages of investments in its e-commerce industry and sleek markets.
The gathering of visits to Lego.com very finest 300 and sixty five days doubled from the 300 and sixty five days prior, as many of Lego’s physical stores were compelled to temporarily shut. Customers had already been gravitating extra to online having a see, however the coronavirus outbreak has accelerated the trends and it likely gained’t be reversed.
“I’m now not obvious it be going to head inspire,” Christiansen talked about.
A tons of play journey that combines the delivery inventive play of LEGO constructing toys for kids with an augmented fact app.
Lego is ramping up recruitment for its digital and tech groups, Christiansen talked about. The firm ultimately needs to be in a position to create products at a faster hobble and invent platforms to home Lego utter material and for constructed-in play.
Soundless, old stores live a key allotment of the emblem’s technique. In sleek years, the toymaker has made a push into the Chinese market, opening dozens of physical locations.
Whereas Lego has been allotment of the tradition in tons of areas savor the U.K. and the US, parents in China failed to develop up with the enduring colored blocks. And so, having locations the place kids can bolt and get their fingers on the bricks and stare the sets that would possibly also additionally be constructed has been a boon to sales.
“Young folks get to inquire of what Lego is and play with it,” Christiansen talked about. “It’s a heed constructed on the physical.”
In 2020, Lego opened 134 retail locations, 91 of which were in China. The firm currently has 678 Lego branded stores globally and has plans to have the ability to add one other 120, collectively with 80 in China. The aim is to delight in around 300 Lego stores in China by the high of 2021.
China is already one in every of the firm’s finest markets, boasting double-digit utter in the very finest 300 and sixty five days.
Christiansen eminent that sustaining the sturdy utter of 2020 gained’t be straightforward, however that the firm is smartly-positioned to proceed being a dominant power in the worldwide toy alternate.
“I wouldn’t bet on 21% all over again, however what I assassinate think is if we proceed our long-term investments, then I suspect now we delight in the chance to outperform the market and preserve portion,” Christiansen talked about.