Lego announced its consumer sales increased by 21% in 2020, CNBC reports.
Why It Matters: The danish toymaker’s success is a microcosm of two important trends — the shift to e-commerce and growth in China. Lockdowns caused most of the company’s brick-and-mortar locations to temporarily close, resulting in the number of visits to Lego.com to double from the year before. Meanwhile, Lego has been in the middle of a push into China, a relatively new market for them.
- Speaking on CNBC about the increasing trend of e-commerce, CEO Niels Christiansen said, “I’m not sure it’s going to go back.”
- Lego opened 91 Chinese stores in 2020, and the company saw double-digit growth in that market last year.
Numbers To Consider:
- 2020 Revenue: $6.99 Billion (+13%)
On The Agenda: “Lego is ramping up recruitment for its digital and tech teams, Christiansen said. The company ultimately wants to be able to develop products at a faster pace and create platforms to house Lego content and for integrated play.”
Physical Locations Never Say Die:
- Even amid pandemic pressures, Lego opened 134 retail locations last year (91 of which were in China).
- There are 678 Lego-branded stories worldwide and the company has plans to add 120 more, which includes 80 more in China.
- Lego aims to have 300 stores in China by 2021.
Looking Ahead: “I wouldn’t bet on 21% again, but what I do think is if we continue our long-term investments, then I believe we have the chance to outperform the market and take share,” Christiansen told CNBC.