Lego surges amidst toy industry slump, driven by innovation and expansion

Denmark: Despite a sales downturn impacting much of the toy industry due to inflation, Lego has defied the trend, reporting a 13 percent revenue increase in the first half of 2024. 
As per reports, the Danish toy giant's earnings rose to 31 billion Danish krone, approximately 4.65 billion dollars.

Reportedly, Christiansen highlighted the strength of Lego's diverse portfolio, particularly noting the popularity of Lego Icons and Lego Creator series, as well as the company's strategic partnership with Epic Games’ Fortnite. Unlike the previous year, when consumers opted for lower-priced sets while maintaining purchasing volume, 2024 has seen an uptick in both sales volume and revenue, indicating a stabilisation in consumer spending patterns.

While competitors like Mattel and Hasbro have experienced declines—Mattel’s net sales dipped by 1 percent, and Hasbro’s revenue plummeted by 21 percent—Lego continues to thrive. Mattel is grappling with tough comparisons to the "Barbie" sales surge in 2023, and Hasbro is dealing with the aftermath of divesting eOne.

Lego's sustained success builds on the momentum gained during the pandemic, with a product lineup appealing to both children and adults. The company has diversified its offerings to include not just franchise-based sets like Harry Potter and Star Wars, but also unique creations such as floral arrangements, famous artworks, and animal models.

While sales in the U.S. and Europe remain robust, Lego's performance in China has been flat, with consumers there spending less on high-priced items and purchasing less frequently. Despite this, Christiansen remains optimistic about the long-term potential in China. Lego is doubling down on its expansion in the region, having opened 20 of its 40 new stores in China in the first quarter, with another 20 planned out of 60 global openings in the second half of the year.

Lego’s strategy of innovation and global expansion, particularly in challenging markets, has allowed the company to not only weather the current industry slump but also to continue its upward trajectory.