I stumbled across an interesting article yesterday:

http://politiken.dk/erhverv/ECE1179524/lego-trodser-krisen-med-supersalg/

Since the article is in Danish, I'll briefly summ it up for you: in spite of the financial crisis, LEGO is doing better and better for every year. Their increase in sales is in some countries as much as between 7 and 70 % (!) and their total market share on the global toys market has increased to 5,5 %, going up from 4,8 % last year. Furthermore, where other companies might choose to move lots of job functions abroad, LEGO has actually kept all their current jobs in Denmark as well as expanded and hired several hundred new employees. Things are looking good for everyone's favourite plastic company!

Very good. *clap*

Excellent news. I have to confess that the financial crisis was part of the reason (there are many others!) I "found" Lego again, I was fed up wasting money on useless stuff and with that in mind, I decided a hobby was a good way to spend my money as I could see the investment. Plus, when I had no money left towards the end of the month, I could have fun with what I had.

I'm sure I'm not the only one though...

This is great news. I've noticed for the last few months that some sets are hard to get your hands on, plus seeing Lego shelves after Christmas, they must have been doing good. With the special lines coming up (Cars, Pirates of the Caribbean) I'm sure they will do much better.

I agree with Zoidy on an investment point of view as well. The recession never held me back, as I bought what I wanted, but I have felt they same way since I got back into the hobby that this is a great investment for years to come. Not that I will ever sell my collection, but it is good to know that it holds its value (look at some older sets on eBay and your jaw will drop!)

I think as a company, they listen to what us consumers what. Sure it takes a couple years for stuff to come down the pipeline (PAB on their website), but they are great a picking out the trends.

Also the Minifigures releases. I know a lot complain about not being able to see inside the package, but they are selling like hotcakes, so I don't think that bothers them

Of course they are. They've got all of us continuing to support them! I don't think there is any toy with such a fan base as LEGO has. Plus they've been doing more marketing, notably the free model builds at the Brand Stores. I see a lot more people in the store for the past couple years after those started.

well if They are doing so good why wont they build a LEGO store close to me *cry*

I'm not surprised about this actually. LEGO has always done very well, and they have a good sign because they're hiring more in Denmark than in China now, so it's a win-win. We get better quality, they get money. Maybe that's why the global economy was hit so hard. Over-seas jobs, so TLC decided to hire closer to home.

Of course they are. They've got all of us continuing to support them! I don't think there is any toy with such a fan base as LEGO has. Plus they've been doing more marketing, notably the free model builds at the Brand Stores. I see a lot more people in the store for the past couple years after those started.

'Transformers' has a fanbase that seems to be at least the size of Lego's.

Edited January 30, 201114 yr by TheDesuComplex

'Transformers' has a fanbase that seems to be at least the size of Lego's.

They do? With multiple huge worldwide forums, blogs, flickr groups, dedicated resources, and a ginormous site dedicated to buying any one of their toys you could ever think of? And custom parts fabricators and decal creators and their own acronyms? And a number of conventions that fans travel to from thousands of miles away?

I never noticed.

Edited January 30, 201114 yr by Brickdoctor

They do? With multiple huge worldwide forums, blogs, flickr groups, dedicated resources, and a ginormous site dedicated to buying any one of their toys you could ever think of? And custom parts fabricators and decal creators and their own acronyms? And a number of conventions that fans travel to from thousands of miles away?

I never noticed.

Yes. Shall I go on to list them?

Yes. Shall I go on to list them?

Nah, that's okay, I was just surprised. I Googled some of the major categories there.

I'm not surprised about this actually. LEGO has always done very well, and they have a good sign because they're hiring more in Denmark than in China now, so it's a win-win. We get better quality, they get money. Maybe that's why the global economy was hit so hard. Over-seas jobs, so TLC decided to hire closer to home.

Not really. By the mid 90s, TLG faced bankruptcy mainly because of the theme parks, but also because of the 'strange' direction they took in their core business (lots of small themes, ugly designs, disappearing of main themes, etc.) as well as the introduction of other construction toys (K'Nex, clone brands). From 1998 to 2004, TLG lost money almost every year and had to fire more than 1.000 employees with 2004 being the worst of all. Unfortunately, I didn't found any numbers, but I won't be surprised that TLG's actual share on the toy market (3,5%) is nowhere near the one they had back in their Golden Years of the 80s. Since 2005, the quality of design improved, the attention to AFOLs increased and the company concentrated on its main themes (City, Star Wars, Mindstorms, etc.). Also, the people who were lucky enough to witness the Golden Years - like me - are becomming parents.

In the end, the most important is that the group is doing well today, even if it's more because they came back from their own 'dark ages' rather than being a well managed company with constant growth over the past 40 years.

I worked as a consultant for LEGO A/S for 9 months in 2007, and have been in the company since January 2008.

There is nothing like working for a company that grows, makes money. It's so much harder to enjoy your work when the company struggles and lay off employees. It just kills most motivation and innovation.

Ok, sales in this or that country grew 30% from 2008 to 2009. Doing another 30 % is kind of unreal.

Erland

Edited January 30, 201114 yr by Front

Also, the people who were lucky enough to witness the Golden Years - like me - are becomming parents.

I think this actually means a great deal for LEGO's current succes.

'Transformers' has a fanbase that seems to be at least the size of Lego's.

To be fair, though, Transformers has always had more diverse media than just toys. LEGO began with just toys-- since then, they've added other media, but besides the LEGO Star Wars video games (which I've heard are popular among non-LEGO fans) the toys always are first and foremost. Transformers, on the other hand, has had comic books, television series, and movies based on it for a long time. If there weren't a driving story behind Transformers, would the fanbase have nearly the same depth?

This isn't to say Transformers toys aren't cool-- the transforming features are sometimes amazingly innovative, and I'm always happy when LEGO can introduce similar features into their own sets. And I'm sure they could sell just fine without a backstory. But the fanbase almost certainly wouldn't have as much holding it together if not for the multimedia aspect of the brand.

This isn't to say Transformers toys aren't cool-- the transforming features are sometimes amazingly innovative, and I'm always happy when LEGO can introduce similar features into their own sets. And I'm sure they could sell just fine without a backstory. But the fanbase almost certainly wouldn't have as much holding it together if not for the multimedia aspect of the brand.

Nevertheless, LEGO toys have always been better than Transformers. Because you can make a Transformer out of LEGO, but you can't make a LEGO out of a Transformer.

I agree with you.

To be fair, though, Transformers has always had more diverse media than just toys. LEGO began with just toys-- since then, they've added other media, but besides the LEGO Star Wars video games (which I've heard are popular among non-LEGO fans) the toys always are first and foremost. Transformers, on the other hand, has had comic books, television series, and movies based on it for a long time. If there weren't a driving story behind Transformers, would the fanbase have nearly the same depth?

This isn't to say Transformers toys aren't cool-- the transforming features are sometimes amazingly innovative, and I'm always happy when LEGO can introduce similar features into their own sets. And I'm sure they could sell just fine without a backstory. But the fanbase almost certainly wouldn't have as much holding it together if not for the multimedia aspect of the brand.

Transformers started as toys as well. Hasbro were just smart and decided to license both a tv show and a comic book in order to promote said toy. But I agree that without especially the tv show, they probably wouldn't have gotten that huge. And yes, I believe Transformers is bigger than LEGO when speaking of brands. Though why did this discussion and comparison start in the first place...?

LEGO > Transformers by more than a factor 2 in a youtube search.

But, it's off topic. Please start a new thread on that subject.

I think this actually means a great deal for LEGO's current succes.

I agree totally! It's the reason i got back into it last year, I wanted a hobby i could do with my son and a toy that was stimulating to the imagination.

Plus it's one of the most family friendly toys alongside playmobil.

Comparing it to Transformers is like asking who would win out of a fight between King Kong and Godzilla.......... there will never be an answer!

Comparing it to Transformers is like asking who would win out of a fight between King Kong and Godzilla.......... there will never be an answer!

This is pretty off topic, I know... but I do believe the Japanese made such a movie once.

But yeah, LEGO - much more than any other toy I can think of - has a GREAT parental appeal that I can't see being rivalled.

I think an interesting comparison to Lego would be Playmobil.

Despite not being a construction toy Playmobil has the same iconic feel and has a lot of the same core themes (castle, city, pirates)

Playmobil is still around and has never resorted to licensed themes or left its core themes to turn a profit.

Having grown up in the classic Lego era I kinda wish Lego had kept core to it's original products.

But apparently Bionicle saved the company in 2004 and the Star wars brand has also been keeping the company afloat, so it's hard to argue against them.

Still makes you wonder.