Perhaps the biggest secret of Lego's toy kingdom lies in its original motive for “having funâ€. For more and more people, Lego is already a brand that transcends the simple toy category, the so-called “playing thingsâ€.
Tmall is defining future consumption and future business. On May 23, Tmall announced a comprehensive upgrade of its brand in Shanghai. Slogan upgraded from “Shentian Cat is enough†to “Ideal Life Tmallâ€, and released “Nothing, Nothingness, Loyalty, Loyalty, People†Set up free, play with things to be determined" 2017 five major consumer trends. "The World Network" tells the story of the brand and Tmall, and reveals the business innovation trend and ideal life connotation under the consumption upgrade. What LEGO stands for is not just "playing things."
Text / world network reporter Zhu Yiyi editor / Zhou Lin
Many people have had a box of Lego toys in their childhood, filled with colorful plastic blocks, gears and mini-humans. With creativity, they can build a fantastic world of imagination.
Lego, which was previously named "the most powerful brand in the world", has been in business for more than 80 years since its inception. With its core products – a total of 1,300 shapes and 12 plastic blocks in each shape, Lego has built its own toy kingdom, attracting generations of children and adults.
At the same time, the territory of this toy kingdom is still expanding, and LEGO has extended its imagination to movies, theme parks and even education.
Perhaps the biggest secret of this kingdom lies in its original motives of “having funâ€, forming long-term and good interaction with LEGO fan bases, stimulating consumers to repeatedly purchase or long-term use of goods, thus forming Specific consumption
Habits and preferences. For more and more people, Lego is already a brand that transcends the category of simple toys, the so-called "playing things."
In the context of Tmall's new retail, LEGO has also become easier to find these fan groups. In the Lego Tmall Super Brand Day on May 25 last year, Tmall not only provided a customized brand exposure for Lego, but also made a fixed investment for the high-end consumer group Apass, which ushered in the LEGO Tmall flagship store. The sales peak, the turnover exceeded 10 million during the event, and the first seat in the toy category.
Last year's double 11, Lego official flagship store turnover exceeded 20 million. At Christmas, Lego specially sent a “mega-rocket version of the Tmall doll†with a height of 1.6 meters and a length of more than 2 meters for the Alibaba Brazilian Creek Park. The blocks were shipped directly from Denmark and certified by Lego in Taiwan. The master (only 16 Lego certified masters in the world) spent three months completing the design and building nearly 100,000 blocks.
"Having fun" economics
The name "Lego" comes from the Danish word "leg godt", meaning "to have fun." This blessed phrase, followed by pieces of colored plastic bricks, was passed on to people from over 130 countries and regions in the world.
Creativity is probably one of Lego's most attractive features. Through continuous splicing, small Lego blocks seem to be able to play endless patterns.
In March of this year, Lego's 2016 financial report showed that LEGO's 2016 revenue reached 37.9 billion Danish kroner (about 37.7 billion yuan), an increase of 6% over the previous year, becoming the world's number one toy company.
Compared with the representative products of other toy industry giants, such as Hasbro's Transformers and Mattel's Barbie dolls, Lego's plastic building blocks seem to be too simple and unexpectedly prosperous. This is actually the choice that LEGO has experienced after being embarrassed and frustrated, and ultimately by Nirvana.
From the years of 1995 to 2004, Lego experienced the cold winter of brand development. Under the impact of electronic toys, LEGO's management team at the time implemented a radical development strategy, frantically increasing the number of products and expanding the surrounding industries. Exceeding its own load capacity, Lego's eager innovation projects failed successively, and in 2004 it reached the edge of bankruptcy.
This is followed by a famous business story of the century – led by the new CEO Jørgen Vig Knudstorp, Lego achieved transformation. Knud Stoop's strategy is to conduct a “global slimming plan†for LEGO: cutting costs, renewing ideas, focusing on the core, returning to the truth, returning to Lego's core concepts of “creativity,†“fun,†and “quality.â€
Product-level transformation can be summarized in terms of “focusâ€. The number of basic units of LEGO bricks has been reduced from 12,900 to 7,000, in order to encourage designers to better use their creativity; to establish a hierarchical and innovative management approach to return building blocks to internal production; to improve development efficiency, new product projects It is stipulated that every three months is a stage to respond flexibly to emerging markets.
While reforming the company, Knudstöpp began to reconnect with the loyal fans of the LEGO toy group, including dialogue with customers on fan events such as building blocks and feasts, innovating with children, recruiting Lego fans to improve Lego Products such as factories and other institutions. “There is a very incredible group between the LEGO brand and the LEGO bricks. We didn’t cultivate them before. But when we started to deal with these things, it brought us tremendous growth for more than a decade.†Knood Stoop later said in an interview with the Boston Consulting Group (BCG).
Be friends with movies
If you are a fan of Lego, you will probably notice that every time Time Warner, Disney and other film companies launch new movies, Lego will almost always launch matching toys. The Avengers, Batman, Pirates of the Caribbean, Lord of the Rings, Harry Potter... These classic images have been re-engraved into a mini-Lego man with a flat body and a square head.
The most successful derivatives are undoubtedly the Star Wars product line that LEGO has launched in cooperation with Lucasfilm since 1999. It is still one of the three best-selling series in the world.
The marriage of toys and film and television works has begun in the last century. Lego is not satisfied with the launch of derivative toys only in conjunction with the movie IP. It wants to make the building blocks of the brand become the protagonist of the film and board the big screen.
The first result of Lego's film and television production was the "Lego Movie" released in 2014. In this animated film of Lego and Warner's collaboration and original story, the roles of different works such as Justice League, Godzilla, Clown, King Kong, and Voldemort have all crossed the same world, and they can laugh at the audience without any disobedience. The $60 million production earned $468 million in global box office.
Relying on movies, Lego has made more adults a fan of the brand and sold more Lego toys. In September 2014, Lego announced that most of the Group's $2.03 billion in profits in the first half of the year benefited from the February 2014 Lego Films boosting sales of the company's derivative toys.
Lego Batman poster
Lego and Warner, who tasted the sweetness, accelerated the schedule for launching new works. The "Lego Batman Movie" released this year has exceeded $300 million. The "Lego Ninja Movie" will also be launched during the year. There will be a real sequel, "Lego Movie 2".
Toys can also be educated? Lego wants to push "play middle school"
Toys can develop children's hands-on ability and creativity, so why not combine toys and education?
For Lego, which is “educational and entertainingâ€, the logic of playing and educating seems to be more reasonable. In 1980, LEGO established the LEGO Education. After entering the Asian market, the goal of “education†in LEGO toys received more attention. Or, it is the educational potential of Lego Toys that helped Lego open up the Asian market.
In the late 1990s, Lego conceived a strategy of shifting from producing educational products to providing educational services. Since 2001, it has partnered with an educational company in South Korea to create 140 LEGO Education Centers in Korea within three years, mainly from 3 to 12 years old. The children provide enlightenment education in STEM (science, technology, engineering, mathematics) and use LEGO teaching aids. In 2006, Lego opened its first LEGO event center in China. At present, there are 24 activity centers that can be found on the LEGO official website, half of which are located in Beijing and Shanghai.
The potential of the Chinese market
More and more toy giants have taken a fancy to the Chinese market. This country, which is experiencing consumption upgrades and has just opened its second-child policy, has enormous potential for consumption.
Several LEGO businesses have focused on China in recent years. At the end of November last year, Lego's factory in Jiaxing was officially completed; in March this year, Lego announced that it would build a theme park in Shanghai.
The LEGO brand flagship store opened in Disneyland in Shanghai Disneyland last May was once the world's largest LEGO flagship store. It was not until 7 months later that it was robbed of the “world's largest store†by the LEGO flagship store in London, England.
The Lego factory in Jiaxing will mainly supply the Asian market. Previously, Lego's products sold in China were from European factories. The Danish headquarters needed to estimate the needs of Chinese consumers two months in advance, and selected the most suitable options from more than 600 products, and then transported to China in one and a half months. The information conveyed by the establishment of the Jiaxing factory is very obvious. On the one hand, domestic consumers can avoid the fear that Lego’s toys can not be sold out, and on the other hand, it reflects Lego’s confidence in the purchasing power of the domestic market, especially in the connection. Down with the help of several Lego movies.
Lego wants to build a theme park in China, and its own strength has also grown significantly in the Chinese market. Lego's current CEO, Bali Padda, mentioned in an interview that LEGO's sales growth in China is over 25%.
Source: World Network
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