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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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All information contained in the Flux app, www.flux.finance, www.joinflux.com, app.flux.finance and any podcast of Flux Media Pty Ltd (ABN 27 639 804 345) is for education and entertainment purposes only. It is not intended as a substitute for professional financial, legal or tax advice. Flux Media Pty Ltd is the owner of the registered trade mark, 'What the Flux'. While we do our best to provide accurate information on the podcast, we accept no responsibility for any inaccuracies that may be communicated.
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