Opening a Lego set can really feel equal elements overwhelming and thrilling. With quite a few bricks and tiny particulars laced into every aspect present in a field, the eagerness to construct brick castles, rocket ships, metropolis skylines, and extra has attracted youngsters in droves for 92 years.
In 2024, few firms have been capable of replicate Lego’s success. Its toys span generations, from grownup hobbyists reconnecting with their favourite toys to the following era.
Since its humble beginnings in 1932 as not more than a carpenter’s ardour undertaking, Lego toys have grow to be an indispensable a part of childhood. Identify the subject, and there’s probably a set for it, whether or not structure, anime, racing, or jazz music.
Kent Gavin—Keystone/Hulton Archive/Getty Pictures
Over the many years, Lego may very effectively have been changed by extra addictive and interesting digital devices. However that wasn’t the case—if something, issues couldn’t be higher for the family-owned Danish firm. It outperformed the toy market with report gross sales in 2023, with a 2% income development, notching DKK 66 billion ($9.7 billion) towards a 7% decline within the broader business.
What, then, is Lego’s secret sauce to maintain youngsters (and, extra just lately, adults) hooked to its colourful bricks?
Fortune takes an unique look behind the scenes of Lego’s product improvement and the key to retaining the long-lasting model related.
One among Lego’s long-standing themes—area—illustrates what makes its strategy distinctive and helps it stand the check of time. House was one of many firm’s three official classes inside which it developed toys (“citadel” and “metropolis” had been the others) courting again to the Nineteen Seventies. It was meant to characterize the mysteries of the long run, very similar to castles did for the previous. House’s reputation with youngsters has endured by the years because it has captured youngsters’ imaginations as a realm of countless alternatives.
“Lego-building is a ardour in its personal proper,” Julia Goldin, Lego’s chief product and advertising and marketing officer, instructed Fortune in an interview.
Listening to youngsters, for youths
Lego realized early on that there was no proxy to understanding what youngsters need with out listening to from them instantly. Goldin stated the corporate made this deliberate determination about 10 years in the past, and it’s helped the corporate change the way it pursued toy-making.
“What makes a Lego set distinctive is, at first, actually understanding the viewers,” Goldin stated. “Not simply understanding what might be of curiosity for them, however what are the precise dynamics of the expertise.”
© 2024 The LEGO Group
The standard of Lego’s bricks is one other issue that units it aside, as units can get handed from one era to the following, in accordance with Frédérique Tutt, international toy business advisor at market analysis agency Circana. In contrast to senseless video games, mother and father suppose their youngsters may achieve one thing good from Lego toys, whether or not that’s engineering skills or utilizing their creativity.
“When mother and father purchase Lego for his or her little one, they suppose it’s going to assist them construct their mind,” Tutt instructed Fortune. “They [Lego] attempt to develop merchandise for anybody and everybody.”
Turning an thought into actuality
As a long-time toy maker, Lego has developed a well-oiled machine to assist it always generate new concepts. The corporate does a “enhance week” every year—consider it like a speedy brainstorming session sometimes related to startups that spur new ideas. Designers provide you with recent concepts or work on present ones, giving them inventive freedom outdoors their day-to-day schedules. There isn’t a guidelines of what must be achieved, though the objective is to see what might be became a possible Lego set, stated Daniel Meehan, one of many brick firm’s inventive leads.
The subsequent step is to determine how “codable” the fashions are, together with discovering parts that inform tales and make them simpler to play with, like Lego astronauts or purple collectible crystals.
Along with milking concepts from the corporate’s designated toy builders, the corporate hears instantly from its viewers.
“We play-test stuff as effectively with youngsters extensively,” Meehan stated.
The corporate brings youngsters collectively internationally, from Germany to China, to see what they need extra of. That course of yielded one of many vital parts we see in Lego’s space-themed units at the moment, stated Meehan, who’s spearheading the corporate’s latest area marketing campaign.
Throughout one among its area “DIY exams,” one of many youngsters was flying round a automobile with wheels, accumulating aliens alongside the best way—each of which weren’t a part of the preliminary set’s design.
“We’re very sensible, we’re adults … however within the eyes of youngsters, it was an ideal area flying automobile. However there was one criticism: he [the kid] stated we’d like extra aliens. And we truly did put extra aliens within the field because of that one child,” Meehan stated.
© 2024 The LEGO Group
The addition of aliens to Lego units, akin to in a Lego area station, provides extra layers to what would in any other case be a simple set and in addition marks a typical thread that ties units from different classes collectively. As an example, Lego aliens may also be discovered within the area science lab and rover units. The little inexperienced creatures had been intentionally designed to look alike as a cue to Lego builders, Meehan tells Fortune.
Lego’s high quality and complexity can make its merchandise costly—typically pricier than the most recent iPhone. That’s very true of merchandise pulled out of the market, making them uncommon. The novelty of its merchandise has made them a collector’s dream and even the item of $100,000 heists within the U.S. The corporate says it presents units throughout completely different value factors so nobody feels priced out. Its most simplified merchandise can price single-digit {dollars}, simply as its 7,500-piece Millennium Falcon set may price about $960.
For the love of element
To make sure, Lego’s look after high quality and element isn’t a brand new phenomenon. The corporate’s founder, Ole Kirk Kristiansen, imbibed it strictly to his son, who as soon as tried utilizing two as an alternative of three coats of paint to hasten an order and was reprimanded.
The corporate’s penchant for element applies not simply to its area creations or toy improvement course of but in addition to its enterprise. Goldin, as an example, straddles conferences that have a look at the corporate’s current efficiency whereas additionally discussing the pipeline for the following few years.
A lot of the Danish firm’s legacy as a toy maker is linked to the way it makes play accessible throughout age teams, pursuits, and expertise ranges. The theme of area, Meehan explains, might be aimed toward three kinds of audiences: storytellers, who’re largely youngsters with a fascination for the topic; fans, who’ve an curiosity in studying in regards to the area; and others, who’re usually drawn to all issues area, together with its inventive facet.
“One other power they’ve is that they enchantment to the younger youngsters in addition to the youngsters or adults with intricate items. So, they develop with you,” Tutt stated.
Marc Mueller—Getty Pictures for LEGO Summer time Birthday Bash
The granular strategy additionally applies to how Lego costs merchandise and designs, and markets units for its up-and-coming grownup fanbase, guaranteeing there’s a toy for everybody. However one factor is bound: no matter the motivations, the corporate tries to not dial down on particulars as a result of that provides Lego toys their character.
Goldin says Lego followers “actually discover” the little parts it provides, as they “deliver numerous pleasure.”
“It’s way more than a toy as a result of it’s a really immersive expertise,” she stated.
