LEGO sees sales in Asia soar - ToyNews

LEGO sees sales in Asia soar

New ranges boost sales by 13 per cent; Despite slow EU and US sales, Asia sales soar by 35 per cent
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LEGO has seen recent sales soar in the Asian market, increasing by 35 per cent in the first half of the year, boosted by response to the firms new ranges including Chima.

Despite slow sales in Europe and the US, the firm remains the world's second biggest toy maker, reporting a 13 per cent increase in sales.

The firm has generated sales of $1.8bn (£1.2bn) in the six months to June 30th, overtaking Hasbro, and attributes much of its success to the new Chima range.

LEGO has also seen profits hit $550 million with its market share rising to 8.8 per cent in the first half of the year.

LEGO chief executive Jorgen Vig Knudstorp, said: "It is a very satisfactory result in view of general developments in the world toy market, which has had a slow start to the year in the largest and most mature mature markets of North America, Europe and Japan."

The Denmark construction toy firm is now only second to Mattel as the world's biggest toy manufacturer.

LEGO chief financial officer, John Goodwin, added: "We have recently located our regional headquarter for Asia in Singapore and we will begin construction of our own in-region manufacturing facilities in China next year.

"Asia has not been a major focus for us as a company up until this point, but we see now with the emerging middle class, more and more consumers that are really interested in our products." 

The LEGO Group’s big product launch in 2013, LEGO Legends of ChimaTM has contributed strongly to the interim result.

“LEGO Legends of Chima has performed well in its launch phase and is already one of the largest LEGO product themes," said Mads Nipper, LEGO Group CMO.

"We expect that the product line will continue to grow through the balance of its first year on the market. The theme has performed particularly well in Asia, where it has been a large contributor to the high growth."

LEGO Friends – a product line launched in 2012 and targeted towards girls – is also experiencing a strong second year, with growth rates significantly higher than the company average.

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