Investing.com — The toy industry is facing a second straight year of sales, but Lego's success offers a silver lining. As many toy companies struggle to maintain sales seen during the pandemic, Lego, a company based in Denmark, is growing rapidly. The company's revenue increased by 13% in the first half of the year, which enabled it to increase its market share.
Eric Handler, managing director at Roth MKM, noted that Lego's success is driving business growth this year. After nearly going bankrupt in the early 2000s, Lego has transformed its business and diversified its customer base. This strategy has allowed us to increase sales even in the midst of inflationary market conditions. The company has reported good annual revenue growth over the past six years.
Lego's growth plan includes licensing agreements, targeting adults and children, branching into digital gaming, partnering with studios and distribution services to deliver Lego content, and building manufacturing facilities near distribution facilities to coordinate supply.
Among the company's most successful products are recently highlighted “desire points,” or kits that cater to a wide range of customers. This includes fans of industries 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 defy industry trends. According to Zahn, Lego often succeeds when other companies struggle. He also said that Lego is able to stay “ahead of the curve” because of its ability to deal with inflation, entertainment industry disruptions, and inflation. He suggested that Lego appears to be two to three steps ahead of its competitors.
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