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Lego Sales Soared in 2020, But Don’t Just Credit Stay-At-Home Trend, it’s Gaining Fans in China

For Lego, it could be a building block for a strong 2021.
(James Copeland)
(James Copeland)
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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:

  1. 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.

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