Utku is a member of the European Retail Workforce and answerable for analysis and writing reviews/content material. He has 17 years of success in driving international thought management, venture/content material administration expertise delivering strategic enterprise intelligence and actionable perception.
Whereas the COVID-19 pandemic is forcing some retailers around the globe to shut, LEGO opened 134 new shops – of which 91 had been in China final 12 months. The corporate plans to open an additional 120 new outlets in 2021, together with 80 in China alone, increasing its whole international retailer depend to nearly 800 in 2021.
That is a part of LEGO’s enterprise technique in direction of – what it calls an ‘omnichannel community’ – working in tandem with LEGO.com, whose on-line visits doubled over the past 12 months. This ties with Mintel’s COVID-19 tracker displaying that just about half of British shoppers at the moment are doing extra procuring on-line – a double digit improve since mid-April 2020. LEGO’s gross sales in 2020 grew by a considerable 13%, whereas working revenue rose by 19% worldwide. Its retail technique is certainly working.
Merging on-line and offline
When it comes to new product launches, LEGO Tremendous Mario set in 2020, which uniquely blends bodily bricks with on-line video games, has been one in all LEGO’s most profitable theme launches. The product line featured an interactive LEGO Mario determine that collects cash in actual life sport ranges created with LEGO bricks. The determine has LCD screens in its eyes, mouth and stomach to show a variety of prompt reactions to motion, color and motion bricks.
LEGO’s Tremendous Mario Set
Collaborating with Common Music Group, the revolutionary firm continues with this technique in 2021 with the LEGO Vidiyo launch – which faucets into children’ creativity by music and play. Via LEGO Vidiyo, kids can direct, produce, star in, and share their very own music movies, utilizing chart-topping tracks from Common Music’s in depth number of international artists. Its playful music video maker expertise combines bodily and digital play as particular impact ‘BeatBits’ and music impressed minifigures combine and are available to life by AR in a vibrant new app.
Mintel Trend Extend My Brand investigates how manufacturers are increasing into new classes and demographics to seek out new enterprise in addition to intrigue shoppers. Manufacturers are suggested to evaluate the chance to make use of their firm’s established picture, visibility, and powerful model following to launch new product strains – which LEGO has been utilising very efficiently in recent times. They’re inspired to discover new classes and value factors that will cater to an prolonged clientele whereas nonetheless aligning with the model’s identification.
Brick by brick, LEGO, which dominates the development class globally, has been increasing its presence in toys focusing on past its core enterprise. In 2020, the corporate entered the humanities & crafts class with the introduction of LEGO DOTS – an idea which presents children a inventive canvas for self-expression. Primarily based on a number of shapes and vibrant tiles, the road featured bracelets and objects for house décor.
Focusing on stressed-out adults
Aiming at adults, LEGO additionally launched its 2nd 2D tile constructing theme, LEGO Arts, in 2020 that includes Andy Warhol’s Marilyn Monroe, The Beatles, Marvel Studios Iron Man, and Star Wars The Sith. Mintel Traditional Toys and Games, US, May 2020 report highlights that customers want toys and video games to carry extra than simply enjoyable and types can join with adults by interesting to their want for wellness.
LEGO Artwork: Andy Warhol’s Marilyn Monroe
With merchandise for adults that may tout stress aid and leisure, every LEGO Artwork design is accompanied by a bespoke soundtrack. These soundtracks dive deep into the inspiration behind every wall artwork set serving to adults unwind and totally immerse themselves within the constructing expertise. Our consumer research (US, March 2020) confirms that there’s a giant marketplace for toys and video games for adults, since half of shoppers who’ve bought toys and video games within the earlier 12 months have carried out so for an grownup.
Offering a singular retail theatre expertise
LEGO shops are an ideal instance of retail theatre with loads of life sized fashions and collectible figurines in addition to play stations. Their retailers are seen as a vacation spot in their very own proper by shoppers. Mintel Trend Experience Is All highlights that the majority shoppers nonetheless put a premium on some great benefits of procuring in-store, which incorporates the flexibility to attempt merchandise in individual and to be helped by customer support associates. This pattern just isn’t about countering on-line gross sales, however fairly turning outlets into satisfying experiences that promote purchases—both in-store or remotely. Retailers are reminded that outlets are home windows and adverts as a lot as locations to buy inventory and they should lengthen the time folks spend there in addition to the frequency of their visits.
LEGO’s Flagship retailer in London
Publish-pandemic (or when the restrictions are eased), LEGO ought to be capable to proceed to construct on its success. For shoppers, a procuring time out will proceed to be a leisure exercise and it’ll more and more be a selection fairly than a necessity. General, the retail panorama will likely be leaner, the battle for client consideration will likely be fierce and when the economic system recovers, shoppers will stay worth acutely aware. In metropolis centres, significantly, newer and higher retailers are coming wherein will undoubtedly assist with the footfall into the excessive avenue, shifting ahead. There’s a enormous alternative and good retailers will proceed to do nicely. LEGO is in an excellent place to capitalise on these.