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· Posted on
February 21, 2024

Lego plans to build a digital future to compete with screen time-obsessed kids

Lego is planning to invest in the digital world to capture the attention of kids who are hooked to their phone.

What's the key learning?

  • During the COVID pandemic, Lego opened 155 new stores and increased production at over half of its factories due to high demand.
  • Although Lego's sales continued to grow, its profit had its smallest increase in 3 years, so now it's planning to invest in the digital world too.
  • The attention economy is always evolving, and now, toy companies are not only competing against other toy companies, but also digital platforms, for the attention of the customer.

👉 Background: Lego started back in Denmark in 1932 when its founder started making wooden toys. Fast forward 90 years and Lego has created more than 400 billion Lego pieces - that’s more than 62 bricks per person.

👉 What happened: COVID was so good for Lego that it had to scramble to keep up. Lego opened 155 new stores and increased production at over half of its factories. As a result, Lego’s sales continued to grow, but its profit rose just 3.7% - its smallest increase in 3 years.

👉 What else: And now, Lego is planning to invest in the digital world too in order to capture the attention of kids who are hooked to their phone.

What's the key learning?

💡 The attention economy is always evolving, and now, toy companies are not only competing against other toy companies, but also digital platforms, for the attention of the customer.

💡So companies like LEGO must adapt to this new reality by embracing the digital age.

  • They’ve built communities where Lego builders can share their creations with others around the world
  • They’re investing in a kid-friendly, immersive metaverse with Epic Games

💡While Lego is tapping into social media and the metaverse to stay relevant, it’s also staying true to what makes them special in the first place.

‍

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