Investing.com — The toy trade is going through its second straight yr of falling gross sales, however Lego’s success is offering a silver lining. As many toy corporations wrestle to keep up the gross sales surge seen throughout the pandemic, Lego, the Denmark-based agency, is experiencing fast progress. The corporate’s income rose by 13% within the first half of the yr, enabling it to extend its market share.
Eric Handler, the managing director at Roth MKM, famous that Lego’s success is driving the trade’s progress this yr. After almost going bankrupt within the early 2000s, Lego has reworked its enterprise and diversified its buyer base. This technique has allowed it to spice up gross sales even amidst inflationary market situations. The corporate has reported optimistic annual income progress for the previous six years.
Lego’s progress technique has included licensing agreements, focusing on adults and youngsters, branching into digital gaming, collaborating with studios and streaming companies to ship Lego content material, and constructing manufacturing websites close to distribution hubs to streamline the availability chain.
Among the many firm’s profitable merchandise are newly highlighted “ardour factors,” or kits that cater to a broad vary of customers. These embody followers of franchises like Star Wars and Harry Potter, automobile lovers, and animal lovers.
James Zahn, editor in chief of The Toy E-book, praised Lego’s capability to defy trade developments. In line with Zahn, Lego tends to thrive when different corporations wrestle. He additionally credited Lego’s capability to remain “forward of the curve” for its agility throughout inflationary durations, disruptions within the leisure trade, and potential tariff will increase. He prompt that Lego appears to be two to a few steps forward of its opponents.
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