Lego, spreading pain throughout the world
There are three kinds of pain:
- Pain
- Excruciating pain
- Stepping on a Lego pain
Lego pain might be spreading from an epidemic to a pandemic if Lego has its way — growing its employee base by some 300% in the last year, and setting its sites on becoming the largest toy company in the world. Quite a reversal of fortunes for the company that a decade was just a few bricks away from a bankruptcy.
While the worldwide growth of Lego can be attributed to its marketing — in particular its propensity for licensing deals with the likes of the Star Wars and Harry Potters brands — the demand side of the equation comes from what we call the Rise & Fall of the Middle Class. As the mass-affluent grows in size throughout the world, and online shopping becomes more accessible (part of our Connected Society thematic), the ability of parents throughout the world to fill their children’s hearts and minds with Lego bricks increases.
Parents, trust us, you might want to save a few bucks for some Lego Protection Slippers . . . it’s a real thing. Google it for yourself.
And there are signs that there’s demand to justify that investment. Revenue grew by a perky 11% in the first half, which the company attributes to innovation in its product lines. Lego CFO John Goodwin acknowledged in a press release that the spending would hurt profits in the short term, but said it’s all part of a long-term plan to serve “more children in more parts of the world in the future.”
