In 2024, few companies have been able to replicate Lego\u2019s success. Its toys span generations, from adult hobbyists reconnecting with their favorite toys to the next generation.<\/p>\n
Since its humble beginnings in 1932 as no more than a carpenter\u2019s passion project, Lego toys have become an indispensable part of childhood. Name the topic, and there\u2019s likely a set for it, whether architecture, anime, racing, or jazz music.\u00a0\u00a0<\/p>\n
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Kent Gavin\u2014Keystone\/Hulton Archive\/Getty Images<\/p>\n<\/div>\n
Over the decades, Lego could very well have been replaced by more addictive and appealing electronic gadgets. But that wasn\u2019t the case\u2014if anything, things couldn\u2019t be better for the family-owned Danish company. It outperformed the toy market with record sales in 2023, with a 2% revenue<\/a> growth, notching DKK 66 billion ($9.7 billion) against a 7% decline in the broader industry.\u00a0<\/p>\n What, then, is Lego\u2019s secret sauce to keep kids (and, more recently, adults) hooked to its colorful bricks?\u00a0<\/p>\n Fortune<\/em> takes an exclusive look behind the scenes of Lego\u2019s product development and the secret to keeping the iconic brand relevant.<\/p>\n One of Lego\u2019s long-standing themes\u2014space\u2014illustrates what makes its approach unique and helps it stand the test of time.\u00a0Space was one of the company\u2019s three official categories within which it developed toys (\u201ccastle\u201d and \u201ccity\u201d were the others) dating back to the 1970s. It was meant to represent the mysteries of the future, much like castles did for the past. Space\u2019s popularity with kids has endured through the years as it has captured kids\u2019 imaginations<\/a> as a realm of endless opportunities.<\/p>\n \u201cLego-building is a passion in its own right,\u201d Julia Goldin, Lego\u2019s chief product and marketing officer, told Fortune<\/em> in an interview.\u00a0<\/p>\n Lego realized early on that there was no proxy to understanding what kids want without hearing from them directly. Goldin said the company made this deliberate decision about 10 years ago, and it\u2019s helped the company change how it pursued toy-making.\u00a0<\/p>\n \u201cWhat makes a Lego set unique is, first and foremost, really understanding the audience,\u201d Goldin said. \u201cNot just understanding what will be of interest for them, but what are the right dynamics of the experience.\u201d\u00a0<\/p>\n \u00a9 2024 The LEGO Group<\/p>\n<\/div>\n The quality of Lego\u2019s bricks is another factor that sets it apart, as sets can get passed from one generation to the next, according to Fr\u00e9d\u00e9rique Tutt, global toy industry advisor at market research firm Circana. Unlike mindless games, parents think their kids could gain something good from Lego toys, whether that\u2019s engineering abilities or using their creativity.\u00a0<\/p>\n \u201cWhen parents buy Lego for their child, they think it\u2019s going to help them build their brain,\u201d Tutt told Fortune<\/em>. \u201cThey [Lego] try to develop products for anyone and everyone.\u201d<\/p>\n As a long-time toy maker, Lego has developed a well-oiled machine to help it constantly generate new ideas. The company does a \u201cboost week\u201d once a year\u2014think of it like a rapid brainstorming session typically associated with startups that spur new concepts. Designers come up with fresh ideas or work on existing ones, giving them creative freedom outside their day-to-day schedules. There isn\u2019t a checklist of what needs to be achieved, although the goal is to see what can be turned into a potential Lego set, said Daniel Meehan, one of the brick company\u2019s creative leads.\u00a0<\/p>\n The next step is to figure out how \u201ccodable\u201d the models are, including finding elements that tell stories and make them easier to play with, like Lego astronauts or purple collectible crystals.\u00a0\u00a0\u00a0<\/p>\n In addition to milking ideas from the company\u2019s designated toy developers, the company hears directly from its audience.\u00a0<\/p>\n \u201cWe play-test stuff as well with kids extensively,\u201d Meehan said.\u00a0<\/p>\n The company brings kids together across the world, from Germany to China, to see what they want more of. That process yielded one of the critical elements we see in Lego\u2019s space-themed sets today, said Meehan, who is spearheading the company\u2019s recent space campaign.\u00a0<\/p>\n During one of its space \u201cDIY tests,\u201d one of the kids was flying around a vehicle with wheels, collecting aliens along the way\u2014both of which weren\u2019t part of the initial set\u2019s design.\u00a0<\/p>\n \u201cWe\u2019re very practical, we\u2019re adults \u2026 but in the eyes of kids, it was a perfect space flying vehicle. But there was one complaint: he [the kid] said we need more aliens. And we actually did put more aliens in the box as a result of that one kid,\u201d Meehan said.\u00a0\u00a0<\/p>\n \u00a9 2024 The LEGO Group<\/p>\n<\/div>\n The addition of aliens to Lego sets, such as in a Lego space station<\/a>, adds more layers to what would otherwise be a straightforward set and also marks a common thread that ties sets from other categories together. For instance, Lego aliens can also be found in the space science lab and rover sets.\u00a0The little green creatures were deliberately designed to look alike as a cue to Lego builders, Meehan tells Fortune<\/em>.<\/p>\n Lego\u2019s quality and complexity can make its products expensive<\/a>\u2014sometimes pricier than the latest iPhone. That\u2019s especially true of products pulled out of the market, making them rare. The novelty of its products has made them a collector\u2019s dream and even the object of $100,000 heists<\/a> in the U.S. The company says it offers sets across different price points so no one feels priced out. Its most simplified products can cost single-digit dollars<\/a>, just as its 7,500-piece Millennium Falcon<\/a> set could cost about $960.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/p>\n To be sure, Lego\u2019s care for quality and detail isn\u2019t a new phenomenon. The company\u2019s founder, Ole Kirk Kristiansen, imbibed it strictly to his son<\/a>, who once tried using two instead of three coats of paint to hasten an order and was reprimanded.\u00a0<\/p>\n The company\u2019s penchant for detail applies not just to its space creations or toy development process but also to its business. Goldin, for instance, straddles meetings that look at the company\u2019s present performance while also discussing the pipeline for the next few years.\u00a0 \u00a0<\/em>\u00a0\u00a0<\/p>\n So much of the Danish company\u2019s legacy as a toy maker is linked to how it makes play accessible across age groups, interests, and experience levels. The theme of space, Meehan explains, can be aimed at three types of audiences: storytellers, who are mostly kids with a fascination for the subject; enthusiasts, who have an interest in learning about the field; and others, who are generally drawn to all things space, including its artistic side.<\/p>\n \u201cAnother strength they have is they appeal to the young children as well as the teenagers or adults with intricate pieces. So, they grow with you,\u201d Tutt said.\u00a0<\/p>\n Marc Mueller\u2014Getty Images for LEGO Summer Birthday Bash<\/p>\n<\/div>\n The granular approach also applies to how Lego prices products and designs, and markets sets for its up-and-coming adult fanbase<\/a>, ensuring there\u2019s a toy for everyone. But one thing is sure: irrespective of the motivations, the company tries not to dial down on details because that gives Lego toys their character.\u00a0<\/p>\n Goldin says Lego fans \u201creally notice\u201d the little elements it adds, as they \u201cbring a lot of excitement.\u201d<\/p>\n \u201cIt\u2019s much more than a toy because it\u2019s a very immersive experience,\u201d she said.<\/p>\n<\/div>\nListening to kids, for kids<\/strong><\/h2>\n
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Turning an idea into reality<\/strong><\/h2>\n
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<\/p>\nFor the love of detail<\/strong><\/h2>\n
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