In a year marked by an inflation-fueled sales slump in the toy industry, Lego stands out as a shining example of success. CEO Niels Christiansen revealed that the company’s revenue jumped by an impressive 13% in the first six months of 2024, reaching 31 billion Danish krone (about $4.65 billion). This growth is attributed to the strength of Lego Icons, Lego Creator, and a successful partnership with Epic Games’ Fortnite. While other companies like Mattel and Hasbro have seen declines in sales, Lego’s volume is on the rise.
Lego’s continued success can be attributed to its diverse product portfolio that appeals to both children and adults. In addition to sets based on popular franchises like Harry Potter and Star Wars, Lego offers innovative design options for consumers to build flowers, succulents, famous works of art, and animals. This wide range of products caters to a broad audience and has helped Lego maintain strong sales in the U.S. and Europe.
While Lego’s sales in the U.S. and Europe remain robust, the company is facing challenges in the Chinese market. Consumer spending on bigger-ticket items is down, leading to a decrease in the frequency of purchases. Despite these challenges, Christiansen remains optimistic about expansion in China, citing long-term potential in the region. To demonstrate commitment to the market, Lego has opened a significant number of stores in China and plans to continue expansion efforts in the coming years.
One of Lego’s key initiatives is its commitment to sustainability. The company has nearly doubled the amount of renewable and recyclable materials used in its bricks compared to the previous year. This investment, while costly, shows Lego’s dedication to environmentally friendly practices. Despite the higher costs associated with sourcing sustainable materials, Lego has not passed this expense on to consumers, demonstrating a commitment to both sustainability and affordability.
Looking ahead, Lego aims to source half of its raw materials from sustainable sources over the next few years. By continuing to innovate and expand its product offerings, Lego is poised for continued success in the toy industry. With a focus on sustainability, a diverse product portfolio, and a strong presence in key markets, Lego is well-positioned to maintain its market share and drive future growth.