We all know them as the little coloured blocks which provide endless hours of fun. It’s hard to believe that despite being on the go for 85 years, retail company Lego has reached its highest level of revenue just this year. The Danish toy maker, which is privately owned, has increased its revenue by 6% this year – to $7.29 billion. The net profit for Lego increased to 9.4 billion kroner (the equivalent of $1.81 billion) from 9.2 billion kroner. It’s no wonder that the CEO, Bali Padda is satisfied with the company’s performance.
What led to the growth of Lego?
Lego has been around for some time, but it seems that the previous CEO, Jorgen Vig Knudstorp is responsible for revamping the brand and making it more innovative than ever before. Jorgen has moved to another role within Lego. The brand is not just resigned to producing toys, though, there are also a number of extremely popular Lego movies – including The Lego Movie and the Lego Batman movie. Lego has also been voted as the strongest brand for 2017 and this is based on consumer’s views on the brand and where they like to shop, the margin and price and money spent on marketing. Lego is a brand which seems to have experienced an unprecedented revival and this is only set to increase as it continues to expand in different countries.
There is a total of 36 Lego stores throughout Europe and these include stores in France, the United Kingdom, Austria and Belgium. The CEO is happy with the sales in Europe and there are plans to increase the Lego presence in London by more than 50%. This means a lot more retail recruitment in this area. However, prices are set to increase by 5%, due to the state of the pound at present. There is also a Lego store in India, which was opened in 2014, but there is a lot of potential foreseen in China. There are 90 retail stores in North America, or soon to be opened – but the sales seem to be flat throughout the U.S.
The future of Lego
It seems that there is a bright future ahead for the brand, with expansion into different countries and possibly more Lego movies to be released. There has also been an addition of 355 new products onto the market, so there is likely to be more ahead in the future. The great thing about Lego is that it is a popular brand with adults and children alike, so they have sustained the whole market. Lego is set to stay and this is good news for us all!