Danish toy company Lego System AS reported strong double-digit growth for the first half of the year, bolstered by strong sales in major markets such as China and the United States. The company attributed its strong performance for the period to its continued investments in product innovations and expanding its e-commerce channels.
The iconic toymaker stated that through its strategic investments it was able to mitigate much of the impact of the global pandemic. For its January to June period, the company reported a 7 percent increase in revenues to $2.5 billion compared with the same period last year. Overall sales for the six month period surged by 14 percent compared with 2019.
Lego group CEO Niels B. Christiansen said in a statement that the company had seen a lot of the benefits of its investments that were implemented as part of its long-term growth strategy. He added that the company's strong portfolio of products managed to appeal to consumers of all ages, particularly those who were left with not much to do during the months of shelter-in-place orders and travel lockdowns.
Apart from its investments, Lego partly attributed its strong performance to its resilient global supply chain, which allowed it to fulfill customer demand for both its offline and online channels. Throughout the pandemic, Lego had worked closely with its retail partners to ensure adequate supply.
Sales growth for most of the company's major markets, including North America, Asia Pacific, China, and Western Europe, remained in double-digit figures for the six month period. In terms of the marketing strategy, Christiansen noted the success of the company's "Let's Build Together" digital initiative, which merged both education and play. The initiative proved to be quite successful as global education had been disrupted by the pandemic. According to Lego, the initiative managed to engage more than 80 million users worldwide.
As for product innovations, Lego officially launched its new Lego Super Mario product line during the first half of 2020. The product merged new digital and physical play experiences to engage old and new Lego fans. The company also launched its new "Monkie Kid" Lego line, which is themed around one of China's most popular folklores. The new line of products was a hit in China as it transformed Lego into a much more relevant product for local consumers.
