How Hollywood Tie-Ins Saved Lego

MBCook writes "The New York Times published an article on Saturday profiling Lego, and how tie-ins with movies have helped save the company. 'Even as other toymakers struggle, this Danish maker of toy bricks is enjoying double-digit sales gains and swelling earnings. In recent years, Lego has increasingly focused on toys that many parents wouldn't recognize from their own childhood. Hollywood themes are commanding more shelf space, a far cry from the idealistic, purely imagination-oriented play that drove Lego for years and was as much a religion as a business strategy in Billund.' The article also mentions coming Lego Stores, a Lego board game, how Lego now allows sets with violence (like a gun for Indiana Jones), and how since 2004 Lego has cut part count nearly in half by encouraging re-use of parts and stopping one-off pieces."

Comments

Stay in business by overcharging and exploiting

[syousef]

So they've managed to stay in business by the power of marketing and the irrationality that people display when buying for kids. Have you seen what a lego set costs these days? It's no wonder cheap rip offs that don't even work as well are getting a slice of the action.

Re:Stay in business by overcharging and exploiting

[syousef]

They actually created a product that people want to buy. Is that a bad thing? Coupled with the fact that you can still buy the 'unbranded' sets and that they are reducing one-off non-reusable pieces, it's a good thing.

No making a product that people want to buy is not a bad thing. Making people want to buy a product by manipulating and possibly lying via advertising is. So is overcharging based on artificially restricting supply once you've created the demand.

There is a reason. The quality of Lego is legendary, so much that they don't even advertise it any more.

Hahahahahaha. I bet you believe in the Easter Bunny too. Google lego advertising.

The parts are manufactured to tolerances comparable with precision machinery.

You mean like a cheap watch? This isn't the 1800s. Precision machinery isn't so special. The fact that some unbranded companies take cost cutting to the extreme doesn't mean that it's so expensive that you can't do it right and have your product sell cheaper. This is no different to camera companies overcharging for lenses and accessories. Sure good product should cost more but not something 2-3x the price.

I have encountered exactly 1 bad piece in 10000$ MSRP worth of Lego (and they replaced when I e-mailed the customer service).

Right so you've spent $10k on lego and I'm suppose to take you seriously? Either it's gotten so expensive that you only have 10 or so sets at $1k each or you've got quite a habit going there. I think it's safe to say they won you over long ago and that you're not exactly unbiased.