Toy brand LEGO will be investing in eCommerce and physical retail experience upgrades, said a press release announcing the company's earnings in the first half of 2019. This includes capturing the opportunities created by "mega-trends" such as digitalisation and global demographic and economic shifts, which are reshaping the industry.
Additionally, LEGO also plans to improve the user experience for consumers and its service to retail partners by upgrading its eCommerce platforms. On the physical retail front, it will be adding more than 70 stores carrying the LEGO brand outside of China in 2019.
[Digital Marketing Asia Conference 2019 in Singapore is back! Join us on 8-9 October as we hear from experienced practitioners and thought-leaders on how they are managing complex digital transitions and reimagining new ways for their marketing to become more customer focused, agile and interactive. Book your seats today.]
Overall, consumer sales grew 5% compared to the first half of 2018, driven by LEGO Marvel Avengers sets, which performed "especially strongly". LEGO Movie 2 products also contributed to the growth, while top selling themes are a mix of "homegrown favourites and partner IPs" such as LEGO City, LEGO Creator, LEGO Friends, LEGO NINJAGO, LEGO Technic and LEGO Star Wars.
LEGO Group CEO Niels B Christiansen said: “We are also excited to explore innovative ways to bring the brick to life through digital play experiences such as new LEGO Hidden SideTM which blends the best of building with the awesomeness of augmented reality.”
In the first half of 2019, revenue for the period grew 4% to approximately US$2.2 billion compared with the same period last year. Operating profit decline by 16% to about US$515 million due to the decision to step up investments in initiatives "designed to create growth in the long term".
Christiansen added that the company is "satisfied" with the financial performance given the "transformative shifts" in the global toy industry. "This is thanks to our dedicated colleagues who are laser focused on collaborating with our valued retail partners and creating the very best brand experiences for fans of all ages," he said.
Moving forward, the group plans to expand its global physical and digital footprint in China and India.
Its ambition to bring learning through play to all children around the world remains its primary focus.
LEGO brings out of the world into the realm of social with Area 51 post
LEGOLAND operator Merlin Entertainments poised for growth post US$6.1b acquisition
After STB, LEGO next to poke fun at Samsung’s foldable smartphone