Today, the company is associated with highly covetable hardware, intuition, premium and design-driven product that the fans love.
It also has diversification potential, a technique used to reduce risk in investment. As it is with Apple in the digital world, so it is with Lego in the world of toys. This has led many to wonder how Lego became the apple of toys.
So, How Did Lego Became The Apple Of Toys? The answer lies solely on deep research work aimed at understanding how children play. The revelation from the in-depth research was then used to create a tweak around the product and services the company renders.
The revolutionary process began with the appointment of a new CEO to the Lego Group in the person of Jorgen Vig Knudstorp. The new CEO then began to take conscious steps towards the transformation of the old aged company which was almost closed up as a result of a consistent decline in revenue and an increase in debt.
Let’s take a look at some of the steps the CEO took.
What Are The Conscious Steps That Made Lego The Apple Of Toys?
1. Product Mix:
Guess this is where the saying “Jack of all trade, master of none” comes into play. Lego stuck to the production of a single toy, became a master of it, and then added variation to the single product. According to the CEO, it’s a simple idea; the bricks are complementary and they fit into each other which create a system from which you can endlessly become creative while building with it.
The company moved beyond the shore of its core market which is in Europe and North America. It pushed into other market space like Asia when it recorded double-digit growth. The company continued to explore other markets to date.
3. In-depth Research:
This step, according to the CEO, is the big blow that brought about the needed turnaround. Knudstorp mentioned that having done all managerial approaches such as improving processes, cutting costs, managing cash flow, etc. we knew that the next major step is to sponsor an in-depth research work. Which they did, spending heavily.
The aim of the research was to;
- Understand what a modern Lego should look like based on the customer’s perspective. This is important in the face of growing competition from the internet and video games.
- Understand how kids around the world really play.
Today, Lego probably has more knowledge about this subject than any other organization on earth. They know a lot about you, your children, and how you relate to your children than you think they know.
4. Intense brainstorming and innovation:
The company devised a week-long intense brainstorming, innovation, and creation. Industrial designers, interaction designers, programmers, Lego wizards who can create anything out of bricks, and marketers come together to compete.
The aim is to generate bigger, deeper, and more awesome ideas. This is in other to remain relevant in the developing world where play is becoming increasingly digital.
5. Development of various experimental projects:
Based on the result of the research, the company came up with various experimental projects to test the market. A majority of these experimental projects are a product of the brainstorming section.
According to the CEO, this is a small area of the company that operates outside the rules but one that delivers vital information. Examples of the experimental projects include but not limited to:
- Lego Mind-storms: This is a robotics platform created with the adult fans in mind. It creates a hybrid digital-physical experience
- Lego Architecture: This project helps fan build models. Fans can create a replica of buildings as they desire with the required bricks.
- Lego Ideas: This lets fans vote on new ideas submitted by amateur designers. Once a new idea gets up to 10,000 votes from fans, it progresses to the review stage and the company decides which gets made.
- Life of George: This was targeted at families. It’s a puzzle game that combines sets of bricks with a smartphone app, bridging the gap between physical and digital play.
These are 5 of the steps that rebuilt Lego into the “Apple of toys”.
Is Lego a Good Investment?
Although it might seem awkward investing in Lego as opposed to gold or other investment portfolios, but over the years Lego has proven to be an attractive investment opportunity.
Lego has been referred to as the “Toy for Smart Investors”. Research over the year revealed that Lego can be of great value when sold secondhand.
Lego may not be the first thing your mind is set upon when you’re thinking of investing. It may seem weird to say you’re investing in a toy but the possibility should not be discarded.
Researchers have found that Lego yields more than the regular investment option, especially in the last 15 years. It might be weird to find out that Lego is even more profitable than Gold especially when you have the right set of Lego as stock.
This is why as a lover or a fan of the toy, you need to take your love for Lego a little higher and learn how to begin investing in Lego. Investing in Lego begins with your collection. You have to buy Lego sets that are retiring soon because when they do, you can begin to sell them at a higher price.
Also, choose Lego bricks that are limited and seasonal. Treat your collection well and keep them in perfect condition. That’s the only way you can be guaranteed been able to sell more than its original price.
Check out Ergo Notes for ideas on how you can sell on Amazon FBA.