I was shocked to read the news that LEGO revenues down 5% in the first half of 2017. It seems to me that LEGO is as popular as ever, and I don’t think I ever remember LEGO having more shelf space in stores. While 5% might not seem like much, to a company the size of The LEGO Group, it’s huge. What did surprise me were a few things included in the press release.
During the first half of the year some of the best-performing themes were homegrown classics such as LEGO® City, LEGO Friends, LEGO DUPLO and LEGO Technic, while the LEGO Batman movie products also saw a great response from consumers.
While I’m not surprised lines like City and Technic are some of the best-performing theme, I was surprised to learn Friends and LEGO Batman Movie sets were as well. While my daughter loves the Friends line, it doesn’t seem to get the same love from the LEGO community at large. And while I enjoyed the LEGO Batman Movie, it just didn’t have the same impact on me the original LEGO Movie did. I don’t feel the same connection to the sets, so I’ve avoided them for the most part.
“We will find more opportunities to engage with kids and parents including innovative ways to blend physical building and digital experiences, such as our successful LEGO Life social platform and LEGO Boost building and coding set. We have a powerful and loved global brand, a strong business and are confident we can reach more children around the world.” – Jørgen Vig Knudstorp
Delving deeper into the digital space concerns me. LEGO bricks are physical. I can touch them. I can feel them. I don’t want virtual bricks, and from what I gather, neither do my kids. They want the same bricks that Dad played with when he was a kid. That being said, I am intrigued by LEGO Boost. I will probably get it for my kids. If we like Boost, it might give me the courage to finally make the jump into Mindstorms!
What do you think has contributed to the decline in revenue for LEGO?
Read the official LEGO Press Release here.