Sales boom for Lego in the first half of 2021
There are games whose conception is really elementary but, thanks to the fact that they have never changed in the least over the course of decades, they are destined for perhaps eternal fame. Table football, the goose game, the Rubik’s cube …
Simplifying again, we come to the mythical colored bricks invented in 1932 in Denmark by Ole Kirk Christiansen. Yup, Lego, which in the first half of 2021 recorded record sales. And they were triumphantly elected by an article in the Financial Times as “winners of the pandemic”.
Lego, in recent weeks, have jumped to the headlines for other reasons as well. Perhaps this explains the secret of their global and almost stable success for almost a century: it is a game of absolute simplicity, but which through a series of astute commercial moves has always been able to keep up with the times.
Let’s find out the Lego sales data in the first half of the current year, and then see how the Danish company has also recently been able to attract attention to itself.
Lego: record sales in the first half of 2021
The numbers are simple and indisputable, just like colored bricks.
The Lego company, in the first six months of 2021, recorded an astonishing + 140% of its net profit, exceeding 6.3 billion Danish crowns. The figure is equivalent to approximately 847 million euros. An excellent + 46% also for turnoverreached 23 billion crowns, equal to about 3 billion euros.
During this semester, Lego opened 60 new stores, 40 of which in China, bringing the total number of stores worldwide to 737. The e-commerce trend was also stellar, thanks to a 50% increase in online sales.
CEO Niels B. Christiansen pointed to one reason for the extraordinary performance: “The easing of Covid restrictions compared to 2020, with factories operating without interruption, and most retail stores reopening.”
Among the most requested items, the Lego City, Star Wars, Harry Potter, Lego Creator Expert and Lego Technic kits.
The winners of the pandemic
In an article of 28 September, the Financial Times analyzes in detail the reasons for the resounding sales success of Lego, renamed the “winners of the pandemic”.
It points out that, if revenues were 50% higher than the industry’s number two, Hasbro’s Transformers and My Little Pony, the net profit was ten times higher.
Great merits are attributed to Christiansen, who took over after a small slowdown in company growth in 2017, and especially after the 2003 crisis..
The current CEO has invested in courageous and innovative ideas: from the production of Lego sets on the border between physical and digital play, to the opening of hundreds of own-brand stores, during the pandemic.
Christiansen, for example, recently opened a flagship store in New York where customers can not only buy Lego sets like Super Mario, City or Harry Potter, but also have interactive experiences.
The ecological turning point
Another reason for Lego’s record sales is to be found in the attention to the ecological aspect.
Niels B. Christiansen announced last June that he would be making his bricks from recycled beverage bottles over the next 18 to 24 months. The move is also an indirect response to a merciless and recent investigation by the journal Enviromental Pollutionaccording to which a Lego brick would take 100 years to degrade in the environment, and even 1,300 years if it ends up on the seabed.
The CEO thanked the founding family, owner of the company, for wanting to “invest in long-term growth”. And when asked if after years of success he foresees a future stop, he gave an affable answer: “It’s a right question. I’m always paranoid, I’m always worried: it’s my nature. But I’m comforted that we’re pushing things that work. We didn’t do it to get a good semester. We did it to embark on a sustainable journey. Could there be semesters in the future that we could be down? I think so”.
The Lego strategy
The winning combination of Lego, we said, is that of a total fixity of the game (the bricks were, are and will be such) to which an extreme dynamism is contrastedmade up of intuitions and collaborations that are always at the forefront.
Not only because his miniatures often pay homage to characters or cult broadcasts, but also for the attention to social, environmental and professional aspects.
For example, the news is very recent that the Lego Foundation will donate 126 million euros to support families affected by the Covid 19 pandemic and its secondary effects (economic, educational and psychological).
In addition, Lego, together with Volvo, has just launched a challenge to 4 teams of 35 very young students. The guys from the United States, Sweden, Japan and Nigeria had three months to figure out how to move a 43-ton Volvo A60 Articulated Hauler. How? Using only LEGO Technic elements.
The strategy is therefore clear: the bricks are the only thing that never changes. For the rest, the Lego company is a continuous ferment of ideas.