“Store expansion should help secure sales growth. In constant currency, revenue grew 7 percent compared with 2017.Operating profit grew 4 percent to DKK 10.8 billion. “The growing middle class, importance of education, and growing economy make India a logical next step in our efforts to reach many more children around the world,” he added. Just tell us where to send it. In established markets, such as the United States and Western Europe, growth was in the low-single digits. So what’s next for Lego? The LEGO Group will also continue to invest to grow in newer markets as part of its ambition to reach more children around the world. âWe are especially encouraged by our progress given the challenges facing the toy industry and the departure of specialist retailers such as Toys R Us. Operating profit was DKK 10.8 billion compared with 10.4 billion in 2017 an increase of 4 percent. The toymaker recognised the need to expand into markets that were still growing, such as China, but was struggling to do so, said chairman of the group Jørgen Vig Knudstorp, in a press statement.
Brand: Subway Campaign: ‘Make It What You Want’ Agency: Above & Beyond What the agency says about the ad ... read more. In the five years leading up to this point, Lego had invested in massive growth. “We have added complexity into the organisation, which now makes it harder for us to grow further. Our latest insights into this industry are below. âWeâd like to thank our talented colleagues who did an outstanding job executing plans during the peak holiday season.â. That means Goldin’s role encompasses both product and marketing, which she describes as a “really big shift” for the company. And with a new flagship store in Beijing, featuring attractions like Lego replicas of the Great Wall of China and Forbidden City, it looks like the toy brand will soon be equally loved by Chinese consumers. Reaching saturation point can come as a surprise, like it did for Lego, and then you may be faced with suddenly having to start from scratch in a new market to secure sales. He succeeded Kjeld Kirk Kristiansen and is the first non-family member to head Lego. That’s how Lego established a sound growth strategy and pushed forwards with confidence.
We would rather do the investments upfront to be leading that change.”. Cash flow from operating activities remained strong at DKK 9.8 billion, although it was 8 percent lower than the DKK 10.7 billion in 2017 due to changes in working capital in line with business momentum. What motivates our colleagues around the world is the role they can play, big and small, in helping more and more children around the world learn through play.â, For further information:LEGO Group Press OfficePh: +45 7950 4919media@LEGO.com. “We have now come to a point where we are really active to the new wave of growth. It will also impact our costs. “The fact that hundreds of millions of Chinese consumers will form an increasingly affluent middle class in the coming years is a huge opportunity for us,” said Lego spokesperson Roar Rude Trangbaek.
During the year, the company introduced the first elements made from plant-based plastics and pledged to use 100 percent sustainable packaging by 2025. Christiansen said: âOur challenge each year is to create play experiences that are more exciting, more relevant and more fun than the year before. It’s always been a towering giant in the toy industry – but in the last couple of years, the company has had to radically rethink its brand growth strategy to compete with challengers in the space and digital offerings. It focuses on using new product development and innovation as the driver of revenues and profits - to great success. We also grew market share in our largest markets around the world, bucking industry trends. In the video, Joergen Vig Knudstorp, chief executive officer of Lego, talks about the company's performance and the outlook for growth. LS23 6AD, Tel: +44 0844 800 0085 They tripled their workforce and tripled the number of lines they offered, and this had left the company over-extended. Lego, Europe's biggest toymaker, boosted profit and market share in 2012 as demand for its new building block sets for girls propelled sales growth. Revenue grew 4 percent to DKK 36.4 billion; operating profit grew 4 percent. 214 High Street, In China, a strategic growth market for the Group, revenue grew strong double-digits as the brand expanded into new cities and built its presence on ecommerce, digital and physical platforms. In this additional interview with Reuters, Jørgen Vig Knudstorp explains how he is looking to Lego game 'Legends of Chima' and ongoing collaboration with leading movie makers around the world to spur growth. “Lego products – the whole idea of creative play experiences – is something that resonates strongly with Chinese consumers.”. That creates a lot of hunger in the organisation,” she concludes. Boston Spa, Being ahead of these trends will allow us to inspire future generations of children,” Christiansen told Retail Insight Network.
Already thinking about how to grow your brand? And it’s not just the analysts who are praising the brand – for the second year in a row, UK consumers have named Lego as their favourite brand. Lego’s new brand growth strategy paid off – they returned to growth again in 2018, with profits and sales both increasing by 4%. As Head of LEGO Retail, Claus Flyger Pejstrup, said: “Our LEGO stores are a great tool for building brand awareness and emotional connection with our fans.”. To jump straight to our ... read more, Welcome to the second feature in our new Creative Spotlight series.
CEO Niels Christiansen announced that 80 new stores would be launched in China during 2019, adding to the existing 60, and giving it a presence in 35 cities. “We’ve experienced supranatural growth, but when you are experiencing that it is sometimes difficult to see what is going to be the next wave. When establishing a new growth strategy, Lego decided to set its sights on China, having already seen double-digit growth there. Check out 6 Ways to Break Through the Barriers to International Expansion. The Group will further expand its presence in the Middle East and explore opportunities in new markets where there is a large and growing middle class population, such as India. It would, though, seek to combine physical and digital play to adapt to China’s advanced digitisation.
“And most importantly what that leads to is they are more agile and responsive to the marketplace.”. Opening its third-largest global factory (in the city of Jiaxing) positioned Lego to supply products not only for the Chinese market, but other Asian markets too, including Japan and South Korea. Every quarter we survey British consumers on their brand awareness and preferences in relation to the appliances & electronics industry. It also installed one of Denmarkâs largest rooftop solar panel systems which will provide 50 percent of the energy requirements to its new Campus building in Billund. Chief Executive Niels Christiansen said Lego had taken “the active choice” to bring down operating profits by 16% in order to invest more. Although, he added that the company would not be aiming for the “supranatural” growth rates of the past. One lesson the Lego’s growth strategy teaches us is how important it is to stay agile.
Another way Lego has restructured to be more agile is by bringing its creative agency in-house. If you’re looking for brand growth strategy examples that you can borrow and adapt, Lego’s shows you how scaling back can sometimes be beneficial. If you have any questions, use the chat, call or send us an email, Lego has won cases against six copy-cat companies, UK consumers have named Lego as their favourite brand, to use sustainable materials in its products and packaging by 2030, 6 Ways to Break Through the Barriers to International Expansion. Boston House, Do you see the glass half-full or half-empty? He is the current CEO of the Lego Group, and has been since October 2004. The problem, said the family-owned Danish company, was weaker demand in established markets such as the US and parts of Europe, where a saturation point had been reached. Great example of the use of strategic partnerships to drive organic growth: Jim co-founded tutor2u alongside his twin brother Geoff! Lego reported its first drop in sales and profits in more than a decade in 2017. In China, a strategic growth market for the Group, revenue grew strong double-digits as the brand expanded into new cities and built its presence on ecommerce, digital and physical platforms. Lego’s new brand growth strategy paid off – they returned to growth again in 2018, with profits and sales both increasing by 4%. Each month we select an advertising campaign that’s been making waves in the industry and put it to the (At)test by surveying 250 UK consumers. The top selling themes in 2018 in no particular order were LEGOÂ® City, LEGOÂ® Technicâ¢, LEGOÂ® Star Warsâ¢, LEGOÂ® Friends and LEGOÂ® NINJAGOÂ®. LEGOÂ® Harry Potterâ¢, LEGOÂ® Jurassic Worldâ¢, LEGOÂ® Classic and LEGOÂ® Creator also performed strongly. It would put money into opening stores, while shipping less product to retailers in the US and Europe. According to CMO Julia Goldin, it’s been key to improving efficiency and effectiveness, not just in marketing but across the business as a whole. Stock was piling up in warehouses because Lego had too many product lines, and there just wasn’t enough room on the shelves in toy stores. Lego’s growth plans included adding stores to less central cities in China.
Meanwhile, Lego will “invest heavily in e-commerce”, ensuring it won’t lose sales to online rivals like Amazon, which was blamed for last year’s collapse of Toys R Us. The company also plans to open more than 70 Lego brand stores outside of China this year, including its fifth flagship store in Amsterdam, The Netherlands. The LEGO Group colleagues also brought play to children in need. reports, and other updates! Lego has been delighting kids (and bringing pain to grownups’ feet) for close to 90 years. Be the first to get the freshest insights and events info to your inbox. “We have to innovate across the whole experience from product to marketing, the whole value chain,” she said. 5 minutes of business studies gold here with an interview by Bloomberg with the CEO of global toy brand Lego. Research showed that Chinese kids play with Lego in much the same way as children of any nationality, and so the toymaker would not be developing product lines specifically for Chinese or Asian markets. “Within 10 years, there will be 100 million kids in India living in middle-class families,” Christiansen told the FT. “They are strong into education and products like Lego are very high on the wish list. In 2018, the LEGO Group bucked toy industry trends to increase its market share in all major markets.
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