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 corporations have been capable of replicate Lego’s success. Its toys span generations, from grownup hobbyists reconnecting with their favourite toys to the subsequent technology.
Since its humble beginnings in 1932 as not more than a carpenter’s ardour venture, Lego toys have develop into an indispensable a part of childhood. Identify the subject, and there’s doubtless a set for it, whether or not structure, anime, racing, or jazz music.
Kent Gavin—Keystone/Hulton Archive/Getty Photos
Over the a long time, Lego might very properly 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 document gross sales in 2023, with a 2% income development, notching DKK 66 billion ($9.7 billion) towards a 7% decline within the broader trade.
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 preserving the long-lasting model related.
Certainly one of Lego’s long-standing themes—house—illustrates what makes its method distinctive and helps it stand the take a look at of time. House was one of many firm’s three official classes inside which it developed toys (“fortress” and “metropolis” have been the others) courting again to the Seventies. It was meant to signify the mysteries of the long run, very like 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 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 choice 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, firstly, actually understanding the viewers,” Goldin stated. “Not simply understanding what might be of curiosity for them, however what are the proper 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 technology to the subsequent, based on Frédérique Tutt, world toy trade advisor at market analysis agency Circana. Not like senseless video games, dad and mom suppose their youngsters might achieve one thing good from Lego toys, whether or not that’s engineering skills or utilizing their creativity.
“When dad and mom purchase Lego for his or her youngster, 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 concept 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” annually—consider it like a fast brainstorming session sometimes related to startups that spur new ideas. Designers provide you with contemporary concepts or work on current ones, giving them artistic freedom outdoors their day-to-day schedules. There isn’t a guidelines of what must be achieved, though the objective is to see what could be was a possible Lego set, stated Daniel Meehan, one of many brick firm’s artistic leads.
The following step is to determine how “codable” the fashions are, together with discovering components 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 properly with youngsters extensively,” Meehan stated.
The corporate brings youngsters collectively the world over, from Germany to China, to see what they need extra of. That course of yielded one of many essential components we see in Lego’s space-themed units as we speak, stated Meehan, who’s spearheading the corporate’s current house marketing campaign.
Throughout one among its house “DIY checks,” one of many youngsters was flying round a automobile with wheels, gathering 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 children, it was an ideal house flying automobile. However there was one grievance: he [the kid] stated we want extra aliens. And we truly did put extra aliens within the field on account of that one child,” Meehan stated.
© 2024 The LEGO Group
The addition of aliens to Lego units, equivalent to in a Lego house station, provides extra layers to what would in any other case be an easy set and likewise marks a typical thread that ties units from different classes collectively. As an illustration, Lego aliens will also be discovered within the house science lab and rover units. The little inexperienced creatures have 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 newest 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 thing of $100,000 heists within the U.S. The corporate says it gives units throughout completely different worth factors so nobody feels priced out. Its most simplified merchandise can value single-digit {dollars}, simply as its 7,500-piece Millennium Falcon set might value about $960.
For the love of element
To make certain, Lego’s take care of 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 a substitute of three coats of paint to hasten an order and was reprimanded.
The corporate’s penchant for element applies not simply to its house creations or toy improvement course of but in addition to its enterprise. Goldin, as an illustration, straddles conferences that have a look at the corporate’s current efficiency whereas additionally discussing the pipeline for the subsequent 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 house, Meehan explains, could be geared toward three forms of audiences: storytellers, who’re principally youngsters with a fascination for the topic; fans, who’ve an curiosity in studying concerning the area; and others, who’re usually drawn to all issues house, 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 Photos for LEGO Summer time Birthday Bash
The granular method 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 offers Lego toys their character.
Goldin says Lego followers “actually discover” the little components it provides, as they “carry loads of pleasure.”
“It’s rather more than a toy as a result of it’s a really immersive expertise,” she stated.
