The idea would be to get on some kind of journey like we are on in China.”. 214 High Street, That’s how Lego established a sound growth strategy and pushed forwards with confidence. “We began with shops in the major cities and are now looking to reach more children by establishing stores in more cities as we see increasing interest and demand for our products,” said Trangbaek. The company organised play events and hosted a holiday Build to Give campaign which, combined, engaged more than 840,000 children in 26 countries.

Research showed that Chinese kids play with Lego in much the same way as children of any nationality, and so the toymaker would not be developing product lines specifically for Chinese or Asian markets. “Store expansion should help secure sales growth. Great example of the use of strategic partnerships to drive organic growth: Jim co-founded tutor2u alongside his twin brother Geoff! It focuses on using new product development and innovation as the driver of revenues and profits - to great success. Shops create experiences, promoting the brand in un-Legoed parts of the world, including China,” it said in a comment piece. In constant currency, revenue grew 7 percent compared with 2017. Christiansen said: “It is a privilege to work for a brand that is so deeply purpose driven and committed to having a positive impact on society. Meanwhile, Lego will “invest heavily in e-commerce”, ensuring it won’t lose sales to online rivals like Amazon, which was blamed for last year’s collapse of Toys R Us. We are pleased to have achieved this, and to have delivered modest top and bottom-line growth. How many key strategic business strategy concepts can you spot: Long-term business planning; Joint ventures and strategic partnerships; Organic growth through new product development These shifts gave us the opportunity to strengthen our partnerships with retailers and find new ways to connect with shoppers and consumers across digital and physical channels. The top selling themes in 2018 in no particular order were LEGO® City, LEGO® Technic™, LEGO® Star Wars™, LEGO® Friends and LEGO® NINJAGO®. Just tell us where to send it. It also underlines how vital it is to go after international expansion to secure long-term growth (alongside research to back up your plans). One lesson the Lego’s growth strategy teaches us is how important it is to stay agile. Knudstorp said this pruning back would prepare the company to grow back stronger: “We will build a smaller and less complex organisation than we have today, which will simplify our business model in order to reach more children. We would rather do the investments upfront to be leading that change.”. Lego reported its first drop in sales and profits in more than a decade in 2017.

West Yorkshire, If you’re looking for brand growth strategy examples that you can borrow and adapt, Lego’s shows you how scaling back can sometimes be beneficial. Lego’s growth plans included adding stores to less central cities in China.

Net profit was DKK 8.1 billion, an increase of 3.5 percent.Cash flow from operating activities remained strong at DKK 9.8 billion.Market share grew in all major markets, bucking overall industry trends. “The growing middle class, importance of education, and growing economy make India a logical next step in our efforts to reach many more children around the world,” he added. LEGO® Harry Potter™, LEGO® Jurassic World™, LEGO® Classic and LEGO® Creator also performed strongly. This investment contributes to the LEGO Group’s continued ability to meet its commitment to be 100 percent balanced by renewable energy. In constant currency, revenue grew 7 percent compared with 2017.Operating profit grew 4 percent to DKK 10.8 billion. Equally, when opportunities present themselves, you need to be able to react quickly to take advantage of them. Although, he added that the company would not be aiming for the “supranatural” growth rates of the past. The strategy of Lego is summed up nicely by the quote: "We want to be the best, not the biggest". The growth was due to increased sales, balanced with a continued focus on investing for the future. LS23 6AD, Tel: +44 0844 800 0085 Be the first to get the freshest insights and events info to your inbox. We were also encouraged by the positive reaction to new products and experiences which integrated digital play, such as the augmented reality app, AR Playgrounds, the DUPLO Cargo Train, which introduces coding to our youngest fans and LEGO BOOST which makes robotics intuitive and fun. “We have to innovate across the whole experience from product to marketing, the whole value chain,” she said. In China, a strategic growth market for the Group, revenue grew strong double-digits as the brand expanded into new cities and built its presence on ecommerce, digital and physical platforms. “We have added complexity into the organisation, which now makes it harder for us to grow further. The business has never made an acquisition. The top selling themes in 2018 in no particular order were LEGO® City, LEGO® Technic™, LEGO® Star Wars™, LEGO® Friends and LEGO® NINJAGO®. Opening its third-largest global factory (in the city of Jiaxing) positioned Lego to supply products not only for the Chinese market, but other Asian markets too, including Japan and South Korea. 2018 Performance Highlights:Global consumer sales grew 3 percent in 2018 compared with 2017.Revenue for the full year grew 4 percent to DKK 36.4 billion. And with a new flagship store in Beijing, featuring attractions like Lego replicas of the Great Wall of China and Forbidden City, it looks like the toy brand will soon be equally loved by Chinese consumers. The growth story of Lego is an organic one.

It makes sense for brands to start exploring potential new markets early on and begin forming partnerships that let you test the water without overstretching yourself. The company’s long term growth strategy includes a push into India and it has announced plans to open an office in Mumbai. Lego’s new brand growth strategy paid off – they returned to growth again in 2018, with profits and sales both increasing by 4%. Privacy Policy. In the five years leading up to this point, Lego had invested in massive growth. “Lego products – the whole idea of creative play experiences – is something that resonates strongly with Chinese consumers.”.

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