Investing.com — The toy trade is going through its second straight yr of declining gross sales, however Lego’s success supplies a glimmer of hope. Whereas many toy corporations are struggling to take care of the gross sales will increase seen in the course of the pandemic, Lego, the Denmark-based firm, is rising quickly. The corporate’s income elevated by 13% within the first half, permitting it to extend its market share.
Eric Handler, managing director of Roth MKM, highlighted Lego’s success as driving the sector’s development this yr. After practically going bankrupt within the early 2000s, Lego reworked its enterprise and diversified its buyer base. This technique allowed it to extend its gross sales even in inflationary market circumstances. The corporate has recorded optimistic annual income development over the previous six years.
Lego’s development technique consists of licensing offers concentrating on adults and kids, diversifying into digital video games, working with studios and streaming providers to offer Lego content material, and constructing manufacturing websites close to shops. distribution facilities to streamline the provision chain.
Among the many firm’s profitable merchandise are the not too long ago promoted “ardour factors,” or kits that attraction to a variety of shoppers. These embody followers of franchises like Star Wars and Harry Potter, automotive fanatics and animal lovers.
James Zahn, editor-in-chief of The Toy Guide, praised Lego’s skill to defy trade traits. In response to Zahn, Lego tends to thrive when different corporations are struggling. He additionally credited Lego’s skill to remain “forward of the curve” for its agility in periods of inflation, disruptions within the leisure trade and potential worth will increase. He urged that Lego seems to be two to 3 steps forward of its opponents.
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