LEGO: The Journey of a Blockbuster Brand

Introduction

• LEGO: Ultimate fans with diverse licenses
• Notable products: Star Wars Starship kit
• Pain of stepping on a LEGO brick vs. a nail
• Key to LEGO's success: Building block of a $6.25 billion company
• Collaborations: The Beatles, Star Wars, Harry Potter, LEGO Land theme parks

Changing Demographics

• LEGO's fan base has evolved
• Originally marketed towards boys, now growing among girls and adults
• AFOL (Adult Fans of LEGO) community
  • Example: David Hall, 12 years creating LEGO content on YouTube

Financial Performance

• Sales growth: 14% increase in 2020
• LEGO growing faster than competitors
• Early 2000s: Near bankruptcy due to strategic missteps

Historical Background

• Founded in 1932 by Ole Kirk-Christensen
  • Created out of necessity during the Great Depression
  • Name "LEGO" = "play well" in Danish
• Current status: Privately held, Kirk-Christensen family ownership
  • Products sold in 130+ countries, 650 stores worldwide

Early 2000s Struggles

• Competition from digital entertainment (video games, technology in toys)
• Shift away from bricks to entertainment content (video games, production)
• Heavy diversification led to financial difficulties

Strategic Reassessment

• Realization: The LEGO brick remains relevant
• Digitalization as an opportunity, not a threat
• Repositioning: Align LEGO with pop culture
  • Enter Star Wars collaboration

Star Wars Collaboration

• Star Wars: First major license for LEGO
• Successful since 1999, top-selling product line
• Connection between Star Wars and LEGO's fanbases
  • Example: Evan, YouTuber with a focus on LEGO Star Wars sets

Entertainment Ventures

• Initial content creation with Lucasfilm (animated content)
• Launched successful LEGO movie in 2014
  • Grossed $468 million, BAFTA winner, Golden Globe nominee
• Shift in focus: Adult consumers and collectors

Adult Consumer Growth

• Increased interest from adult fans
• Development of higher-priced products for adult collectors
• Acquisition of BrickLink, a community for adult fans
• Examples of impressive adult creations (David Hall's MOCs)

Community Engagement

• Importance of online communities for product reviews and feedback
• Response to adult fan influence, including collaborations on product development

COVID-19 Impact

• Pandemic challenges: Factory and store closures
• Unexpected financial growth due to increased demand for educational and engaging products

Future Directions

• Focus on gender inclusivity and sustainability
  • Experimenting with paper bags and products for girls
• Continued adaptation to meet the needs of younger generations

Conclusion

• LEGO's revival rooted in its original product: The simple brick
• Future success reliant on a diverse, engaged fanbase and inclusive community