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Timely Movie Set to Prop Up Lego's U.S. Business
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Lego bricks are wildly popular in many countries including the U.S. Lego has seen "supernatural" growth in the last 8 years, according to Soren Torp Laursen, who heads the North American operations. Growth is now slowing, just as the Lego movie has achieved box office record for 3 weeks at No. 1. Data from NPD Group show U.S. consumer sales up 1% to $1.35 billion in 2013, giving Lego 7.8% share of U.S. toy market. Total sales were $4 billion in 2012. New products led to a surge in U.S. sales in 2012 by 26%. German sales were up 4% in 2013 compared to 13% in 2012, Germany making up 10% of its total sales. Now Lego is bringing out Lego sets based on the movie. About half of the 40 billion bricks are made in a small town of Billund in Denmark.
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Innovation is a big part of this, with 60% of sales coming from new products. Competitors tend to copy Lego's products. Lego's focus on creating products for girls is part of the reason for its fast growth.
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Lego A/S created the Lego Friends theme building block toys for girls which tripled sales in 2012. In the last decade Knudstrop has revived a failing family held company in a small town in central Denmark and made it the second largest company in the global toy business.
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