Wealth

LEGO’s Remarkable Comeback: How a Toy Giant Adapts to Changing Times

LEGO Company was founded in the 1930s and is a famous toy manufacturer in the world. The various series of splicing building blocks it develops are ever-changing, attracting the hearts of children of all sizes around the world, and also making Lego famous and known as the national treasure of Denmark.

But no one expected that such a toy kingdom would run into sales difficulties in 2003 and almost go bankrupt.

At that time, Denmark’s cultural industry was developing rapidly, people began to pay attention to the intellectual investment in children, and many toy companies sprung up. Although they are not as “old” as Lego, they have more advantages in technological innovation and toy prices. For a time, many former “Lego fans” put down the easy-to-assemble building blocks in their hands and favored more new toys. This caused Lego’s sales to plummet, and it was about to be eliminated in the market wave. Lego’s management was so anxious that the company took many measures to stimulate consumption, such as adjusting product prices or injecting new ideas into toys like its competitors, but for some reason, it always had little effect.

In order to reverse the bleak sales situation, Lego sought experience everywhere. They have traveled to many cities. People all know the name “Lego”, but they do not regard it as their favorite. Every child’s attitude towards Lego toys seems to be dispensable.

In early 2004, when a Lego inspection team visited a medium-sized city in Germany, they met an 11-year-old boy. This little boy is a Lego fan and has always loved toys produced by the company.

“Little guy,” a member of the inspection team touched the little boy’s messy hair, “can you show me your favorite thing?”

He thought that the little boy would hold out a certain set of Lego building blocks, but unexpectedly, the little boy pointed to the worn-out sneakers on his feet without hesitation.

“This is my reward for winning first place in skateboarding!” the little boy explained happily, “it proves that I am the best skateboarder in the city!”

The member of the inspection team froze on the spot. He instantly realized that if a child wants to gain a sense of social presence among his peers, he must have a skill that is beyond ordinary people. Therefore, no matter how cheap or worn out that pair of sneakers is, they are a testament to the young boy’s superb skateboarding skills. And Lego toys, no matter how fun they are, can hardly prove that he has a certain skill that is beyond ordinary people, nor can it bring him a sense of honor.

Upon returning to the company, Lego immediately changed course. In the subsequent product development, we paid special attention to the inner needs of children, rather than blindly bringing children the pleasure of playing with toys. Since then, LEGO has not only reset the standard size for its bricks, but also added more smaller pieces. More importantly, Lego not only adds “fun” elements to toys, but also increases the difficulty and challenge of games, aiming to make some children stand out in terms of intelligence and practical ability and gain a sense of social presence.

The newly launched Lego toys quickly became popular again. For a time, children could be seen playing with Lego everywhere on the streets, and many people spontaneously organized private “Lego piecing competitions” to compete with extremely difficult building block games… Lego finally regained the top spot. Turned around the disastrous sales situation.

Everyone longs to be praised and recognized, just like a pair of worn-out sneakers will be cherished because of their “extraordinary origins.” Only by making players “outstanding” can products be “outstanding”. The example of Lego turning losses into profits is not only a famous case in the marketing industry, but also a vivid lesson for us.

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