Investing.com — The toy industry is facing its second straight year of declining sales, but Lego's success is providing a silver lining. While many toy companies struggle to maintain the sales surge seen during the pandemic, Denmark-based company Lego is experiencing rapid growth. The company's revenue increased by 13% in the first half of the year, allowing it to increase its market share.
Eric Handler, CEO of Roth MKM, said Lego's success is driving industry growth this year. After nearly going bankrupt in the early 2000s, Lego transformed its business and diversified its customer base. This strategy has allowed it to boost sales even in inflationary market conditions. The company has reported positive annual revenue growth for the past six years.
Lego's growth strategy has included licensing deals aimed at adults and children, diversifying into digital games, collaborating with studios and streaming services to deliver Lego content, and building manufacturing sites near distribution centers to optimize the supply chain. supply.
Recently highlighted among the company's successful products are “passion points,” or kits that serve a wide range of consumers. These include fans of franchises like Star Wars and Harry Potter, car enthusiasts, and animal lovers.
James Zahn, editor-in-chief of The Toy Book, praised Lego's ability to buck industry trends. According to Zahn, Lego tends to thrive when other companies struggle. He also credited Lego's ability to stay “ahead of the curve” to its agility during periods of inflation, entertainment industry disruptions and potential rate increases. He suggested that Lego appears to be two or three steps ahead of its competitors.
This article was generated with the support of ai and reviewed by an editor. For more information consult our T&C.
!function(f,b,e,v,n,t,s){if(f.fbq)return;n=f.fbq=function(){n.callMethod? n.callMethod.apply(n,arguments):n.queue.push(arguments)};if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version=’2.0′;n.queue=();t=b.createElement(e);t.async=!0;t.src=v;s=b.getElementsByTagName(e)(0);s.parentNode.insertBefore(t,s)}(window, document,’script’,’https://connect.facebook.net/en_US/fbevents.js’);
