LEGO reports continued growth during 1H 2021
Posted by CapnRex101,
The LEGO Group has published interim results for the first half of 2021, reporting an excellent performance in all areas during that period.
Headlines
- Global consumer sales increased by 36%.
- Revenue grew by 46%, to DKK 23.0 billion.
- Operating profit increased to DKK 8.0 billion, rising by 104%, while net profit reached DKK 6.3 billion, a 140% increase.
- Market share grew globally and in all major markets.
- Best-selling themes include City, Star Wars, Technic, Creator Expert and Harry Potter.
- Recyclable paper bags will be introduced during 2022.
BILLUND, September 28, 2021: The LEGO Group today reported first half earnings for the six months ending June 30, 2021. Revenue for the period grew 46 percent to DKK 23 billion compared with the same period in 2020. Consumer sales grew 36 percent, outpacing the toy industry and driving market share growth globally and in all major markets.
Operating profit was DKK 8 billion, an increase of 104 percent compared with 1H 2020, despite an ambitious programme of strategic investments to support growth in the long term.
The LEGO Group CEO, Niels B. Christiansen said: “We are very pleased with the progress we made across all areas of the business during the first half. Our performance was driven by strong demand for our portfolio, which has attracted new builders to the LEGO brand. Our year-on-year growth benefited from fewer COVID-related restrictions compared with 2020 as our factories operated uninterrupted and the majority of retail stores re-opened.
“We also saw the benefits of multi-year investments in e-commerce, product innovation and a global supply chain network. Our strong financial performance now allows us to accelerate strategic investments in sustainability and digitalisation.
Christiansen continued: “We are especially grateful for our amazing team. Despite all the challenges and uncertainties of the past six months, they worked extraordinarily hard to bring play to more families around the world.”
All market groups grew double digits
All market groups delivered double-digit consumer sales growth which was driven by excellent execution and a diverse portfolio which appealed to builders of all ages and interests. Top-performing themes included LEGO City, LEGO Star Wars, LEGO Harry Potter, LEGO Creator Expert and LEGO Technic.
Operating profit more than doubled despite significant investments in major long-term initiatives such as a new retail store format; e-commerce capabilities; an enterprise-wide digital transformation; and efforts to make products and operations more sustainable. Operating profit was also offset by increased freight and raw material costs.
Christiansen said: “As we look ahead to the second half of 2021, we continue to see strong demand for our products. Longer-term, we expect top-line growth to stabilise to more sustainable levels as people return to pre-pandemic spending patterns. This trend, combined with our plans to accelerate re-investments into the future of the business, is expected to result in more normalised profit levels moving forward.
“Our investments are designed to create a sustainable future for the business and advance our mission to have a positive impact on children and the world they will inherit. Digitalisation and sustainability will have an especially critical play in this, and we are extremely pleased with the progress our teams are making in these areas. We will also continue to develop our play experiences and brand expression so that LEGO play is diverse and welcoming for all.”
Building a sustainable future
The company made progress against its ambition to create more sustainable products. In June it unveiled a prototype brick made from recycled single-use PET bottles, an important step in reducing its reliance on non-renewable raw materials. It also completed a successful trial of paper bags designed to replace single-use plastic in boxes and will begin phasing in the new paper packaging from early 2022. This development ensures the Group remains on track to make all packaging 100 percent sustainable by 2025.
Memorable brand experiences online & instore
The LEGO Group’s investments in its physical and digital retail channels paid off in the first half. E-commerce sales across our own and partners’ platforms grew 50 percent compared with the same period last year.
The company also launched a new retail store format which will be introduced to around 60 stores during the second half of 2021. The format was unveiled at the opening of a new flagship store in New York City in June and is designed to create immersive, playful and memorable brand moments.
The LEGO Group continued to expand its global retail footprint opening more than 60 new LEGO branded stores in the first half of 2021, more than 40 in China. This brings the total number of LEGO retail stores as of June 30, to 737, with 291 of those located in China.
During the second half of 2021, the company will accelerate investments in a multi-year, enterprise-wide digital transformation. New digital platforms, products and ways of working will support a long-term ambition to digitally-enable the LEGO brand to create fantastic experiences for children, shoppers, partners and employees. Digital talent hubs were opened in Shanghai and Copenhagen in addition to the company’s headquarters in Billund and hub in London to support this effort.
Positive impact on future generations
The company continued to help children around the world develop via learning through play. More than 1.2 million children benefited from product donations and local community engagement activities.
Year to date, the LEGO Group with the LEGO Foundation, which owns 25 percent of the LEGO Group, pledged more than DKK 1.5 billion (US$235 million) in donations to agencies which support children and families, especially those in need.?This included DKK 940 million (US$150 million) for COVID relief, with a focus on children’s health and development; DKK 140 million (US$23 million) to support children’s education; DKK 100 million (US$15.7 million) to agencies working with families impacted in Haiti and Afghanistan; and funding for programmes which advance learning through play in communities where the LEGO Group operates.
Christiansen said: “The single biggest motivating force for everyone at the LEGO Group is knowing we can have a positive impact on future generations. Whether it’s in times of acute need or helping a child develop new skills that will last a lifetime, LEGO play and the LEGO brand can, and will, make a difference. We’re proud to be in this position and are committed to doing all we can to continue to inspire and develop the builders of tomorrow.”
I cannot recall Creator Expert, or its equivalents, being mentioned among the best-selling themes before. Evidently the adult market has continued to grow in importance, unsurprisingly.
What is your reaction to these results? Let us know in the comments.
88 likes
80 comments on this article
Creator Expert in the best-sellers is great
"Operating profit increased to DKK 8.0 billion, rising by 104%, while net profit reached DKK 6.3 billion, a 140% increase."
I-N-S-A-N-E! And it will get worse for us, since revenue and profit need to get better each year...
WOW, big big numbers. Well done TLG!
To my mind, the continued financial success of TLG means they will be able to continue spending on innovation, niche products, emerging markets (and hopefully quality control), all without sacrificing their dedication to core bricks, long-standing themes and traditional sets (which I think they've proven they are very much capable of).
Sure Vidiyo has bombed, the clothing lines are the last things I would ever buy, and a LEGO shoe is weird weird weird, but they still make big boxes of basic bricks, and sets for every age group, and most tastes, all at price points from £3 to £500, so I don't think their success or their sometimes off-the-wall ideas have any negative impact on our hobby*
*EDIT, the probable move to blind boxes containing paper bags for CMFs will definitely upset fans of the fondle-bags, but I predict they'll try to offset this with subtle serial codes stamped on the outside of the boxes for anyone wanting a particular figure. Every LEGO shop I've been in, about a dozen, has staff officially able and willing to find you specific figures, so in the UK at least TLG has no problem with helping us know exactly what we're buying.
That's a lotta shops in copyland ..
Lets hope this will mean MORE ANIMALS in system sets.
I also hope Families that got shafted by Lego previous cuts are ok!
@lordofdragonss said:
"Lets hope this will mean MORE ANIMALS in system sets."
DKK 6.3 billion in net profit means plenty of funding available for goats!
Be careful, the higher you climb, the further it is to fall back to earth…….
Creator Expert in the top selling themes. About time! I wonder if POBB, Mediaeval Blacksmith and the Crocodile had something to do with that.
Not keen on this emphasis on digital, Lego doesnt need to go digital it should be about physical building! Apps and rip off games just ruin the experience in trying to be something else. Its like if Spaulding made a random poor quality phone game to play basketball. It just doesnt work and is unnecessary.
Furthermore, I really wish Lego would realise that China is not the only country in the world... They want to open stores in China, fine, but why focus on it so much?
Tell us about the stores in new regions or countries which have never got a store before rather then the hundreds and hundreds of stores opening in China. How about some investment in India or Brazil, or Eastern Europe, the Balkans, maybe even Russia? Has New Zealand even got a store yet?
Investment in China is also not exactly risk free either. Its no coincidence that the rise of rip off Lego brands stealing Lego and fan designs such as Lepin has coincided with Lego's push into China. China has also annoyed a LOT of countries, including in Europe. The US and EU may yet decide to take further action against China which could see trade restricted. My point is not whether this is a good or bad thing, it is that these are real concerns. There are also China's human rights abuses. Does China's actions comply with Lego's values? I leave that question for others to decide, but it is another thought to consider.
Finally, given the rise in revenue, perhaps Lego could rehire all those workers they fired because revenue went down 1% a little while ago. 'Waaa 1% we can't afford our luxury yacht, we'd better restructure' (fire people)
Ole had to lay off some workers because of the Depression, but he rehired them when his business got going again. The modern Lego Group should do the same.
Good, now start rehiring.
Where are the minidoll themes in the top selling list? Is Friends and Disney Princess no longer selling well? Really hope they continue to innovate there like with elves
@MainBricker said:
"I think Lego will be in for a bit of a shock next year, as I can already see sales tapering off as lockdowns ease.
For instance a lot of the GWP have struggled in recent months, whereas at the start of the year they sold out within minutes.
Lego are producing a glut of adult sets, and doing random IPs that are of no interest to Lego fans. They're oversaturating the market. In 2003 Lego produced too much and it hit them hard, whilst I don't think it will be that bad, they shouldn't expect to see continued growth and should be prepared for a fall in sales."
I don't believe they will be in for a shock. The number crunchers will understand that profit margins of that magnitude are not sustainable. Add to that the inevitable hike in fuel prices, less disposable income due to tax increases to pay for COVID etc. They will allow for that in their business plan, no doubt.
As for GWPs. Surely it is just a case of them dealing with demand better over these last few months? They did state that production was back to normal.
@ChromedCat said:
"Where are the minidoll themes in the top selling list? Is Friends and Disney Princess no longer selling well? Really hope they continue to innovate there like with elves "
Just because they're not in the top 5 best-sellers doesn't mean they're selling poorly
@MainBricker said:
"For instance a lot of the GWP have struggled in recent months, whereas at the start of the year they sold out within minutes."
And continue to sell out within a day or two in Australia. Perhaps Lego need to divert a bit of that UK stock here then…
These are crazy results! They do state that it's not sustainable so they know that. I wonder how the 18+ sets are selling. They are really going for it for the adult market with so many diverse sets. I'm glad that it's going well - looking forward to some more exploratory sets. Even though I won't like them all, there's a good chance there will be a few that I will love!!
I'm not even sure what the Creator expert line is anymore (what's it's identity?). Someone mentioned some sets above that are from Ideas but I presume these are not Creator expert (not under the tag on their website) Whereas, the botanical sets are Creator expert!
For a year that includes VIDIYO, looks like it turned out fine.
It's good to see the company is looking strong. I'm looking forward to those paper bags though, I feel increasingly guilty about the number of plastic bags I have to throw in the bin when I build a new set. I wonder if polybags will go back to those neat little boxes of the 90s...
@MainBricker said:
"I think Lego will be in for a bit of a shock next year, as I can already see sales tapering off as lockdowns ease.
For instance a lot of the GWP have struggled in recent months, whereas at the start of the year they sold out within minutes.
Lego are producing a glut of adult sets, and doing random IPs that are of no interest to Lego fans. They're oversaturating the market. In 2003 Lego produced too much and it hit them hard, whilst I don't think it will be that bad, they shouldn't expect to see continued growth and should be prepared for a fall in sales."
TLG’s problems in the early 2000s were not caused by too many sets, but out of control inventory with lots of one-off pieces and too many colours. TLG was saved by bringing their Ops and logistics processes under control. This control process is still very much in place, with every theme having limited slots each year for new parts and recolours.
Bali Padda cannot be thanked enough for this turnaround.
@Msanders said:
"These are crazy results! They do state that it's not sustainable so they know that."
Quite right and a point missed by a couple of earlier posters. It’s written in ‘corporate speak’ but that’s essentially what @LEGO_CEO said:
"As we look ahead to the second half of 2021, we continue to see strong demand for our products. Longer-term, we expect top-line growth to stabilise to more sustainable levels as people return to pre-pandemic spending patterns. This trend, combined with our plans to accelerate re-investments into the future of the business, is expected to result in more normalised profit levels moving forward."
Top selling themes mean that i.e. given each piece costs 1€, "we produced 100 and sold 90pcs" for example or that "we produced 1000 and sold 200"? That way one can easily explain the lack of "Lego Friends" and other minidolls sets at the top 5. You can't sell what you cannot produce (see "Elves" minidolls line)
Also good to see TLG rising and I hope it's got economic sustainability for years to come instead of ebbs and flows. As others said, I would've also ditch apps etc and clothes from TLG line of products. Stick to the brick dear company, stick to the brick! Finally, bring back (affordable) castle and pirates theme!!!!!
My first question is ‘if they’ve got so much money to spare now, why would they want to raise the prices to all be the same instead of lowering to the same effect? It couldn’t possibly hurt the sales, right? I’m expecting that these raisings will actually decrease the amount of sales overall, so I don’t get it. Oh well, let’s wait to see the clarified statements before jumping to any assumptions.
I surely hope the ‘digital innovations’ bit is referring to an update to lego.com and all those services which are just incapable of handling the current demand (well, it’s been happening for like a year now but I’d be glad if they’re getting to it at all). To be fair, Mario was a great way of integrating digital features into the physical play experience, but all the other innovations have been rather weak to say the least.
On one hand I’m glad the company is doing so well and I’m excited to see what they come up with next, on the other I’m a little afraid of how they could end up handling their wealth. I sure hope they won’t continue acting like everything is perfectly fine while the actual quality keeps steadily decreasing (cough, print quality, color consistency, brittleness, cough), as it seemed was the case in that awfully written price increase statement last week. Again, I’ll just see how it goes and then decide based on what I see.
@blackdeathgr said:
"Top selling themes mean that i.e. given each piece costs 1€, "we produced 100 and sold 90pcs" for example or that "we produced 1000 and sold 200"? That way one can easily explain the lack of "Lego Friends" and other minidolls sets at the top 5. You can't sell what you cannot produce (see "Elves" minidolls line)
Also good to see TLG rising and I hope it's got economic sustainability for years to come instead of ebbs and flows. As others said, I would've also ditch apps etc and clothes from TLG line of products. Stick to the brick dear company, stick to the brick! Finally, bring back (affordable) castle and pirates theme!!!!!"
You do know that none of the Lego clothing lines are done in-house these days, right? Lego Wear exists since decades, and is done under licence by Kabooki, another danish company.
Similar with the Adidas and other clothing lines that have been added recently. Within TLG this is only taking up resources within the marketing and legal teams.
Funnel some of that profit back into Technic and reinstate B-models in large sets, TLG...
@ComfySofa said:
"... *EDIT, the probable move to blind boxes containing paper bags for CMFs will definitely upset fans of the fondle-bags, but I predict they'll try to offset this with subtle serial codes stamped on the outside of the boxes for anyone wanting a particular figure. Every LEGO shop I've been in, about a dozen, has staff officially able and willing to find you specific figures, so in the UK at least TLG has no problem with helping us know exactly what we're buying."
From the LEGO statement it seems the move to boxes is just a matter of time, I just hope like you they won't be blind boxes but will include some sort of printed code to help identify the content. Otherwise the madness of vandalized boxes at stores that started with Vidiyo will continue.
@mr_Fikou said:
"My first question is ‘if they’ve got so much money to spare now, why would they want to raise the prices to all be the same instead of lowering to the same effect? It couldn’t possibly hurt the sales, right? I’m expecting that these raisings will actually decrease the amount of sales overall, so I don’t get it."
The decrease will likely be minimal. It will mostly impact AFOLs who are consistent high spenders. If you’re buying for a kid or you’re an adult who buys the occasional 18+ set for themselves, you’re not going to be aware of or care much about the price levelling increases.
Also, LEGO’s focus may not be on top line growth. It may be concentrating on bottom line. The effect of levelling prices through increases could slightly decrease the former while net increasing the latter. No doubt LEGO has done its homework.
Gosh, it's almost as if Lego know what they are doing, despite not following the demands of the internet comment section geniuses to the letter!
Congrats Lego!
Lego, put that profit back into hiring staff
@The_Sly_Fox said:
"The number crunchers will understand that profit margins of that magnitude are not sustainable. Add to that the inevitable hike in fuel prices, less disposable income due to tax increases to pay for COVID etc. They will allow for that in their business plan, no doubt."
Oh for sure the number crunchers will understand. The question is, can they convince their bosses and their bosses' bosses to understand. I sure hope so, because Ive seen what happens when they dont and, spoiler: the end consumer always loses.
@Brickchap said:
"Furthermore, I really wish Lego would realise that China is not the only country in the world... They want to open stores in China, fine, but why focus on it so much?
Tell us about the stores in new regions or countries which have never got a store before rather then the hundreds and hundreds of stores opening in China. How about some investment in India or Brazil, or Eastern Europe, the Balkans, maybe even Russia? Has New Zealand even got a store yet?"
Are you serious? Lego should stop focusing on China, home to a fifth of the world’s population, so that they can focus on New Zealand, a country whose population is smaller than 100’s of cities in China. 100% growth can easily be attributed to a focus on China. Had they chose New Zealand instead, or some other tiny Eastern European countries, I imagine growth would have been measured in single digits.
And if you’re so concerned with human rights violations, then why are you asking for a focus on Russia and India? Even Brazil would be questionable given their refusal to curb Covid and the horrendous impact their decisions had on the rest of South America.
I’m shocked to see Creator Expert mentioned, I thought the line was discontinued and replaced with 18+. I’m also shocked that Mario didn’t make the list.
And yet some fanboys still believe the argument that prints instead of stickers are too expensive for poor TLG.
But, reading the comments on Brisckset over the past few months, I was sure LEGO did not know how to do business because they did not care about nor listen to their customers. How can they make money if they don’t follow AFOLs recommendations? I’m confused.
Seriously, this is a bad piece of news for all of those who want LEGO to do only what the community requests. Because this shows LEGO does not need to listen to anyone but itself to turn a huge profit.
@AustinPowers said:
"And yet some fanboys still believe the argument that prints instead of stickers are too expensive for poor TLG."
I for one do not really like printed pieces. For one, the opacity of printed pieces is often terrible and prints are often misaligned. More importantly, if you want the pieces to moc something, printed pieces are terrible because you’re stuck with pieces that have prints on them you don’t necessary need. LEGO sticker are good quality. It’s easy to learn to apply them and most sticker sheets are super cheap to buy on the secondary market (I buy extra sheets for most of my big sets, just in case). And when they are not, some people do great custom ones. I do wish however LEGO sold sticker sheet like they do with parts.
Finally something on those paper bags
@alfred_the_buttler said:
"I’m shocked to see Creator Expert mentioned, I thought the line was discontinued and replaced with 18+. I’m also shocked that Mario didn’t make the list. "
While Creator Expert is still on their website and in their catalogue it's still a thing... It's only fan pages and channels that have been going on about 18+ and black boxes like a stuck record!
Since Lego is making insane profits, they could now afford to cut prices a bit...
@AustinPowers said:
"And yet some fanboys still believe the argument that prints instead of stickers are too expensive for poor TLG."
It is not a question about printing cost, it is about inventory cost.
One sticker sheet with 20 stickers = 1 item
50 sets with 20 stickers each = 50 items for decoration
50 sets with 20 printed parts = 1.000 decorated items. A nightmare to store and administer.
@Jacopyright said:
" @AustinPowers said:
"And yet some fanboys still believe the argument that prints instead of stickers are too expensive for poor TLG."
It is not a question about printing cost, it is about inventory cost.
One sticker sheet with 20 stickers = 1 item
50 sets with 20 stickers each = 50 items for decoration
50 sets with 20 printed parts = 1.000 decorated items. A nightmare to store and administer."
Finally someone gets it!
Revenue going up even though part quality is deteriorating. I guess making smaller pieces and having more of them in a set is a thing now?
Well, if they have made that much money, how about someone who can build a retail website that doesn't crash all the time? It seems like the back end stuff is struck in 1996, with only the front-facing part gets a bare-bones facelift. It's like putting lipstick on a pig, at this point.
...and the V.I.P system is better than when it rolled out, but it's not "Only the best is good enough" material. It's more, "eh, we tried!"
Comments on articles like these are unintentionally hilarious.
Lego just announced incredible financial results, and a bunch of us random fans are offering advice to the most successful toy company in the world, without understanding the complexities of international marketing, design, production, distribution, or a myriad of other factors.
@Jacopyright said:
" @AustinPowers said:
"And yet some fanboys still believe the argument that prints instead of stickers are too expensive for poor TLG."
It is not a question about printing cost, it is about inventory cost.
One sticker sheet with 20 stickers = 1 item
50 sets with 20 stickers each = 50 items for decoration
50 sets with 20 printed parts = 1.000 decorated items. A nightmare to store and administer."
Hence all those printed tiles in Vidiyo or Dots.
As long as there are so many people indifferent enough to believe every argument TLG throws at them, record sales will keep going forever.
But hey, if you are happy with how things are going, by all means, contribute to those record numbers. I for one am not going to anymore.
Oh and as for prints not being opaque enough or misaligned, that's just a LEGO problem because they cheap out on print quality. How do you think those record profits are achieved? Price gouging customers while saving on quality. That's the new edict at TLG corporate.
Have to wonder what the impact of COVID has been on TLG sales. A lot of people probably came out of their dark ages through boredom of sitting around their house with nothing to do.
Those are impressive numbers. It makes sense. So many people at home working and needing something to pass the time. But still unbelievable numbers!
I know my spending has curbed over the last few years thanks to a certain global situation. But that also led me to evaluate better how badly do I want/need this set or that set. So hopefully going forward I can keep that line of thought.
Fantastic numbers! Congrats, Lego. Definitely explains all the shortages. It was all that demand!
My purchases have been steady for the past few years as I'm at the point where I just remove some sets from my want list as more desirable sets are announced. But clearly many are buying more Lego.
@Brickchap said:
"Tell us about the stores in new regions or countries which have never got a store before rather then the hundreds and hundreds of stores opening in China. How about some investment in India or Brazil, or Eastern Europe, the Balkans, maybe even Russia? Has New Zealand even got a store yet?"
Romania's got it surprisingly ok despite not having an official store yet, honestly the only thing we are really missing is more frequent GWP's, some of which not even seeing the light of day here.
To the guy who comments on almost EVERY.FREAKING.BRICKSET.ARTICLE about how LEGO bricks quality is going down the drain, how TLG is a terrible company that can do no good, how all of us fanboys eat up what TLG tells us and how he has stopped caring and buying sets: We know what you think and we know you're not buying sets anymore. You keep writing it over and over and over again. So much so that I'm now able to guess pretty much what you'll write everytime there's a discussion about TLG. Don't be afraid to move on.
I honestly wish you find a new hobby that brings you some joy and some peace of mind.
Lego brick quality has been going down. People keep commenting on it because it keeps happening.
@guachi said:
"Lego brick quality has been going down. People keep commenting on it because it keeps happening."
I mostly agree (although the helmets of my youth kept breaking and torso prints would rub off). But that was not the point of my post.
@AustinPowers said:
" @Jacopyright said:
" @AustinPowers said:
"And yet some fanboys still believe the argument that prints instead of stickers are too expensive for poor TLG."
It is not a question about printing cost, it is about inventory cost.
One sticker sheet with 20 stickers = 1 item
50 sets with 20 stickers each = 50 items for decoration
50 sets with 20 printed parts = 1.000 decorated items. A nightmare to store and administer."
Hence all those printed tiles in Vidiyo or Dots.
As long as there are so many people indifferent enough to believe every argument TLG throws at them, record sales will keep going forever.
But hey, if you are happy with how things are going, by all means, contribute to those record numbers. I for one am not going to anymore.
Oh and as for prints not being opaque enough or misaligned, that's just a LEGO problem because they cheap out on print quality. How do you think those record profits are achieved? Price gouging customers while saving on quality. That's the new edict at TLG corporate. "
Those printed tiles in Vidiyo and Dots are because that's what those themes used there allotted slots for new parts/recolours/prints for. If those 2 themes didn't exist, some other newly launched theme would have used them instead - these slots would not be for any of the existing themes.
If I recall correctly, themes also have a higher parts/recolours/prints in their launch year.
I prefer to go with the facts we know, instead of feelings or speculation. TLG righted the ship in the early 2000s by drastically cutting their out-of-control inventory. This is a fact. TLG has stuck to this strategy ever since.
Could TLG print more parts? Sure, if they build/expand another factory (their current ones are already all at 100%) AND another mega warehouse. (Those are at 100% capacity as well.) That's a risk they seem to not want to take, as even in this H1 report they highlight the current growth is not sustainable.
Light print on dark pieces is definitely a problem. However some recent reviews seem to highlight that this is getting better. Fingers crossed it's a solved problem.
And hopefully the same will be the case soon for the colour variation issue. This got worse last year due to a supplier issue (1 supplier dropping out) - I'd love to see another interview with Bjarke Schønwandt (TLG's Quality Director) to understand where they are with this.
@RaiderOfTheLostBrick said:
"For a year that includes VIDIYO, looks like it turned out fine."
For as much as most people dislike Vidiyo, I'm glad Lego took that risk. It was definitely the correct time to do something different and weird.
When people complain about Lego apps, are they talking about the instructions app? I find that one to be FANTASTIC, and hope it continues to expand.
My partner and I enjoy building together, and having one of us use the printed book and the other on the app is a great way to let us work together.
Similarly: having digital-only alternate builds for the art kits is fantastic. There's no reason that kind of thing can't be on the app as well.
Or are people annoyed at VIDYO and Hidden Side?
Glad to see TLC is doing well.
The focus on China worries me , though it's understandable as a business decision. The problem is that China is run by a thin-skinned easily offended. communist dictatorship that commits genocide against its own population and is militarily aggressive and domineering. I don't want TLC to cave in to China's wishes the way so many other institutions have (for example the Catholic Church).
@MainBricker:
I wouldn’t go by GWP availability to judge overall sales volume. They may have underproduced at the start of the year and overcompensated in recent months. The Ideas hot rod also had a low threshold (50? 75?) where the sailboat is a $200 spend with little new AFOL-bait releasing now. New Years and May 4th are two of the highest sales volume days, but there’s still Black Friday Preview, Black Friday, and December 1st coming up. I feel like there’s one more high volume day I’m forgetting about, too...
In 2003, the problem was they were doing stuff like Jack Stone, and abandoning sets that required actual construction for several regular themes. They stopped using the Technic and Duplo brand names as well, and just listed Technic Star Wars sets by the IP name. Their range of parts and color palette were both out of control. There were a host of issues from 2003 that are not being repeated now. I realize Vidiyo seems to break the mold restriction, but many will be theme-locked, and slated for destruction when the theme concludes. 20 years ago, they stored those molds “just in case”.
@Brickchap:
The pandemic pushed Creator Expert up the list. There are a ton of adults who had disposable income, but nowhere to go and nothing to do, so they started buying large D2C sets to maintain their sanity.
You also have the China angle backwards. There aren’t ripoffs because they’re pushing into China. They’re pushing into China because there are ripoffs.
@bricks4everyone:
I’ve seen zero Vidiyo boxes that have been tampered with, which is indicative of the main problem with the theme. People rarely steal things they have no desire to own.
@alfred_the_buttler:
The Creator Expert branding was removed from the packaging, but LEGO.com still differentiates between Creator Expert and Creator 3-in-1, so customers can still shop by those separately online. I don’t know offhand if the LEGO.com catalog or LEGO Store shelf tags make any distinction, and I doubt other retailers do, but as long as one part of the company does, it means they still have a line drawn that allows them to differentiate the two for sales tracking.
@AustinPowers said:
" @Jacopyright said:
" @AustinPowers said:
"And yet some fanboys still believe the argument that prints instead of stickers are too expensive for poor TLG."
It is not a question about printing cost, it is about inventory cost.
One sticker sheet with 20 stickers = 1 item
50 sets with 20 stickers each = 50 items for decoration
50 sets with 20 printed parts = 1.000 decorated items. A nightmare to store and administer."
Hence all those printed tiles in Vidiyo or Dots.
*Rest of repetitive rant deleted* "
Remember that most of the printed tiles in Vidiyo and Dots are randomized/mixed, shared between sets, and hence occupy relatively few storage slots…
But LEGO have made some prepacked/bagged collections of parts (like tools, kitchen utensils, Friends bows, weapons/greebles and even the Dots printed letter tiles), and these also occupy just one storage slot. Perhaps they could make more of those? I can only think of one drawback: difficulty then sharing printed elements between different sets… perhaps a mix of bundled and exclusive printed parts…?
The non-re-usability of printed parts is also a good argument - more important to MOCcing AFOLs than the general public, though.
I think LEGO has the balance between printed and stickered parts about right these days.
@stlux said:
"Light print on dark pieces is definitely a problem."
Only for LEGO though apparently.
Have you ever built sets by Cobi or Qman, to name but two? Compare the quality of their prints to those by LEGO. Doesn't seem to be a problem for them at all.
And as for that other chap who constantly gets triggered by my comments and who keeps on explaining to me how I should quit the hobby entirely and find some peace of mind: rest assured I am completely at ease and have total peace of mind. I have so many other hobbies that I don't need LEGO at all.
Thing is, I am not just going to throw all the sets I already have away, nor all those from other manufacturers I have built over the past few years, just because I am not going to buy new ones from Denmark anymore.
Nor am I going to stop reading articles on Brickset and other sites or watching reviews by Jang and others. After all, it's entertaining.
Glad to see the Harry Potter theme is in the top five bestsellers! I've seen some worry that they'd be ending the theme due to the smaller number of sets this year, but I think this means it'll be sticking around for a bit!
@AustinPowers said:
" @stlux said:
"Light print on dark pieces is definitely a problem."
Only for LEGO though apparently.
Have you ever built sets by Cobi or Qman, to name but two? Compare the quality of their prints to those by LEGO. Doesn't seem to be a problem for them at all."
Perhaps LEGO use different printing inks/chemicals - you know, just to be absolutely sure they are safer for toddlers…? Perhaps they do not want to increase the amount of (especially white) particles in their inks just to make the prints more opaque?
Just a speculation and suggestion - like most comments by us fans outside of LEGO…
@PubliusMaximum said:
"For as much as most people dislike Vidiyo, I'm glad Lego took that risk. It was definitely the correct time to do something different and weird. "
It really wasn't!
@maaboo35 said:
" @PubliusMaximum said:
"For as much as most people dislike Vidiyo, I'm glad Lego took that risk. It was definitely the correct time to do something different and weird. "
It really wasn't!"
Lego saw enormous growth this year as a result of the pandemic. If ever there were a year to make an expensive mistake, this was clearly it, because they still came out of it with growth. Vidiyo may have flopped hard but the rest of their products more than picked up the slack thanks to unique circumstances
@PurpleDave said:
"I’ve seen zero Vidiyo boxes that have been tampered with"
I've only seen one. I went in to Carmarthen Tesco to get the last Series 1 figure I needed, but all of their three boxes of Vidiyo had some packs missing and they were clearly jumbled up so I didn't want to take the chance. Then I noticed a single pack laying down behind the boxes and saw that it had been really badly torn open, like properly half destroyed. I couldn't resist checking... and it was the one I was after. I mean, who finds a Banshee Singer and doesn't buy it???
At the till I felt like an absolute dirtbag, knowing the cashier would assume I'd torn open the box, but to her credit she didn't bat an eye!
Ok, maybe not the most exciting story you'll read on here, but I had to get it off my chest :D
i wonder will they ever open a store here in Dublin? :(
I don’t get why this huge push for China. Sure, it’s potentially a huge market....if the tyranny allows it. Just knowing what they’ve done to Disney, first with SW & now with Shang-Chi... then yeah, there’s the whole human rights atrocities.
@ComfySofa said:
" @PurpleDave said:
"I’ve seen zero Vidiyo boxes that have been tampered with"
I've only seen one. I went in to Carmarthen Tesco to get the last Series 1 figure I needed, but all of their three boxes of Vidiyo had some packs missing and they were clearly jumbled up so I didn't want to take the chance. Then I noticed a single pack laying down behind the boxes and saw that it had been really badly torn open, like properly half destroyed. I couldn't resist checking... and it was the one I was after. I mean, who finds a Banshee Singer and doesn't buy it???
At the till I felt like an absolute dirtbag, knowing the cashier would assume I'd torn open the box, but to her credit she didn't bat an eye!
Ok, maybe not the most exciting story you'll read on here, but I had to get it off my chest :D"
I had that happen to me once with a bagged series. I was looking for the Fencer specifically and oddly enough the only one they had on the shelf was torn open and it happened to be the one I needed.
I checked the contents and then asked customer service if I could still buy it (that way it didn't look like I tore it open, since I didn't). They had some back and forth with a manager and finally agreed to selling it to me as long as I knew the risks of pieces missing, etc.
Looking back, I'm not sure why I didn't just go to self checkout and call it good since I knew none of the pieces were missing (since I could see in the bag). Oh well, I try to be honest.
@AustinPowers said:
" @stlux said:
"Light print on dark pieces is definitely a problem."
Only for LEGO though apparently.
Have you ever built sets by Cobi or Qman, to name but two? Compare the quality of their prints to those by LEGO. Doesn't seem to be a problem for them at all.
And as for that other chap who constantly gets triggered by my comments and who keeps on explaining to me how I should quit the hobby entirely and find some peace of mind: rest assured I am completely at ease and have total peace of mind. I have so many other hobbies that I don't need LEGO at all.
Thing is, I am not just going to throw all the sets I already have away, nor all those from other manufacturers I have built over the past few years, just because I am not going to buy new ones from Denmark anymore.
Nor am I going to stop reading articles on Brickset and other sites or watching reviews by Jang and others. After all, it's entertaining.
"
If you're going to hang around then how about you don't comment?
Good for them but this is unfortunately why we won’t see a return to Castle, Pirates, Space, etc.
@AustinPowers:
Excessive use of one-time prints is yet another thing that contributed to their two big annual losses. Every one of those requires a new SKU for warehousing and packing set contents. Sure, it’s only 25 printed parts for this set...but it’s 10 sets for this theme, and 20 themes, and next thing you know you have 5000 extra elements to keep track of instead of 200 sticker sheets.
So, no sticker sheets, more than five colors, and deco that’s not exclusively brick-built. Pick two.
@Murdoch17:
They did announce that this year they planned to beef up the website so it can handle surges in traffic. We haven’t really had one since then, so no idea how far along they are on that, or if they got it right finally, but we should find out when the VIP Preview weekend kicks off. And then Black Friday. And then December 1st. And then January 1st.
The VIP site is a separate issue. I asked about the queueing system, and was told that it has to be switched on manually, and that it only covers the storefront section of the site, which is why they had epic failures during the rollout of the VIP coin codes, and why they opted to push back the launches of the Ulysses and Coin 5 a week or two when there weren’t any new product launches.
@AustinPowers:
The difference between Vidiyo and D2C sets is that the next $500 set will function just fine if the stickers are left off, or if they’re slightly misaligned, or if you do something unexpected with them. It may look butt fugly, but it will function. Vidiyo probably won’t. Super Mario won’t either, but there they ran into an issue with the print not being durable enough to play the game, where they were able to find sticker stock that was. And then it has to be applied in the factory because misalignment, or stickers that peel within a few days, will make the game unplayable.
Also, most of the Vidiyo tiles are randomly packed, which means they are warehoused as a single element, with only the character-specific (one per Bandmate, two per Beat Box) tiles being kept separate. Dots is the same way. Any Extra Dots pack has one SKU for any random tiles that may be included.
Print quality is a bit tricky, though. Most prints don’t line up with anything on the next part, so taking the time to get it CNC-precise may please those of us who notice, but mostly it just means they’ll tie up the machine even longer during changeover, and produce less printed parts. Double-printing white base color so print on dark parts looks really good will tie up the machine even longer. But at some point, they’re going to have to expand their print capabilities by adding at least one more pad printing machine. Right now, though, from what I understand, some of all of those machines are running at capacity already.
Yeah, I know, “just use stickers somewhere else.” Except the only “somewhere else” is the 4+ and Duplo range, which basically involves selling out the future of the company to please one guy who vocally hates most of what they produce already.
@PubliusMaximum:
As meh as I feel about Vidiyo, I recognize that they can afford to have a big failure every now and then, and that without taking chances like that they never would have come up with Bionicle or Ninjago.
@Sethro3:
When S4 came out, I spotted them stocking cases at Meijer, and grabbed two sealed ones to go buy. Rather than try to run them all through self-checkout (120 packets, plus the scales fail to recognize CMF or Kool-Aid packets and force the attendant to come over every third scan), I took them to a regular cashier. She rang up the barcode on the back of each shelf case...which happens to be the same barcode as the packets. Two sealed cases of 60 CMFs each, $3.98 plus tax. Of course I pointed out the massive issue...and she probably wished I hadn’t. Turns out they couldn’t just “x120” to get the correct total, and she had to call another cashier over to help make sure she rang up exactly 120 packets.
140% net profit increase yet the lego simps still defend price hikes and quality decreases. The only ones you're harming are yourselves
I'm glad to read the company is doing so well because I know my store team and I had a small hand in making it happen back in Q1 2021! Even we chafed and mocked the VIDIYO roll-out, but mainly because we had to do all this extra work to feature the sets via displays and marquees in the store. We gave it 110%, and I still feel proud of what we accomplished, even though I got a full-time job elsewhere that forced me to quit.
@Snazzy101 : I am highly critical of TLG, no doubt about that.
But I don't resort to personal insults.
Just look at the comments by @PurpleDave . He and I often have very different opinions, but contrary to yours, his criticism of my comments is constructive - and appreciated I might add.
Likewise my comments are - if criticising in nature - generally trying to be constructive, for example by mentioning what other (often much smaller) manufacturers can achieve that TLG apparently can't (or doesn't want to).
I just don't get why you get so riled up by that. Are you so fixated on hating every brick brand that is not LEGO that you can't see the big picture anymore? We are one community of people who love building with bricks. That doesn't mean we have to unconditionally love a company that doesn't care about its longtime customers but only about ever higher profits. Don't let all their marketing speak lull you in.
Their diminishing parts quality is not a rumor or feeling, it's a noticeable fact. Even more noticeable if you can compare how it has evolved over the decades.
@PurpleDave: I have seen Vidiyo BandMates boxes torn open, but I've also seen CMF bags opened. Jerks are gonna be jerks, I suppose.
I completely agree with you about TLG taking chances: Space and Castle were pretty risky bets back then, I suspect! I'm sure there was someone saying, "Kids aren't going to want this."
@Brickchap said:
"Furthermore, I really wish Lego would realise that China is not the only country in the world... They want to open stores in China, fine, but why focus on it so much?
Investment in China is also not exactly risk free either. Its no coincidence that the rise of rip off Lego brands stealing Lego and fan designs such as Lepin has coincided with Lego's push into China. China has also annoyed a LOT of countries, including in Europe. The US and EU may yet decide to take further action against China which could see trade restricted. My point is not whether this is a good or bad thing, it is that these are real concerns. There are also China's human rights abuses. Does China's actions comply with Lego's values? I leave that question for others to decide, but it is another thought to consider."
The finance guys would have crunched the numbers before TLG decided to open so many stores in China. 1.4bn people is a huge market with a fast growing middle class and Lego is getting really popular there since parents think it's a great educational toy for creativity and motor skills that doesn't require a screen. They are also about to air Lego Masters so everything is gearing up over there to make this decision a no brainer.
There are definitely risk due to the dodgy government there but I am sure they have weighed up the risk and benefit. The pie is just too big to ignore. With human rights, that is down to the communist party which the people have no control over and unfortunately cannot vote them out. So should the people be punished for that?
With the knock offs, that is a hard one to stop especially since they have factories over there. Even if there are no manufacturing or retail presence, the Lepins of the world will still get their hands on Lego to copy it since all the images and instructions are on the Internet. Hopefully TLG's continued investment will encourage the governement to crack down on these copycats as they have done with Lepin.
I do think it is a fine line that TLG will have to tread, much like Hollywood and the NBA have done. The chinese government is a bully and a lot of their actions are disgusting but to a lesser extent, you can say the same about the US government. At the end of the day, it's all business.
Best novelty of next year: "Recyclable paper bags will be introduced during 2022."
@560heliport:
I’ve seen lots of open CMF now packets, open set boxes, and minifigs missing from DK books. It’s just that I don’t remember seeing a single Vidiyo product that was pilfered. I also don’t generally see basic brick sets opened either. It’s mostly the licensed IP that gets targeted for rare/exclusive minifigs.
@matrox2001 said:
"Be careful, the higher you climb, the further it is to fall back to earth……."
Exactly. Does anyone remember when Lego nearly went bankrupt? It wasn't that long ago back in 2003. And a lot of these new sales are new customers due to the pandemic. Really happy for this success and hopefully many will remain loyal fans. Hopefully for years to come.
Personally I have allocated most of my LEGO spending to used bulk over the past four years. I still keep an eye on the current releases and overall pace of sets and have definitely noticed an upward trend even in just that timeframe of a few years. If I remember correctly there were about 460 unique sets released in 2020, ignoring gear and set collections. That's on top of sets from 2019 and a good chunk of the 2018 stock as well, which adds up to around 1000 different sets to choose from online. I won't be surprised if there are more than 500 new sets out this year, but putting those numbers in the context of the last decade shows a steady trend up.
I say; keep it going, LEGO, keep it going.
@AustinPowers said:
" @Snazzy101 : I am highly critical of TLG, no doubt about that.
But I don't resort to personal insults.
Just look at the comments by @PurpleDave . He and I often have very different opinions, but contrary to yours, his criticism of my comments is constructive - and appreciated I might add.
Likewise my comments are - if criticising in nature - generally trying to be constructive, for example by mentioning what other (often much smaller) manufacturers can achieve that TLG apparently can't (or doesn't want to).
I just don't get why you get so riled up by that. Are you so fixated on hating every brick brand that is not LEGO that you can't see the big picture anymore? We are one community of people who love building with bricks. That doesn't mean we have to unconditionally love a company that doesn't care about its longtime customers but only about ever higher profits. Don't let all their marketing speak lull you in.
Their diminishing parts quality is not a rumor or feeling, it's a noticeable fact. Even more noticeable if you can compare how it has evolved over the decades. "
I didn't insult you - I compared you to *redacted*, I didn't call you one. There's some nuance there.
I'm under no delusion that LEGO is the perfect product, or that as a business it can do no wrong. Everything they do is open to critique, and it could be argued that as the end customer it's our duty to do so.
I have fond memories growing up with LEGO and that's continued on and off through to today. Other people have had different experiences, but I can legitimately say that nothing I have encountered personally has soured my experiences enough to stop building or to stop buying.
Could that change? Sure - there are plenty of hobbies I've moved on from.
But if that did happen do you know what I wouldn't do? I wouldn't come back to places like Brickset to regurgitate the same tired statements over and over and over again to an audience who have made it abundantly clear to me it's not wanted. I wouldn't come back to vehemently complain about the build of something like the yellow Fiat, or about exclusives and then turn around and buy the exclusive blue Fiat.
I wouldn't do such things because I have enough self-awareness to recognize that would make me a hypocrite and a sad pathetic old man. In fact to actively revel in something which makes me miserable could well be a sign of mental illness.
But you keep doing you champ, and I'll keep scrolling past you as I normally do. Like I do with all the other dead space here.
@Snazzy101 said:
"I wouldn't come back to places like Brickset to regurgitate the same tired statements over and over and over again to an audience who have made it abundantly clear to me it's not wanted. I wouldn't come back to vehemently complain about the build of something like the yellow Fiat... "
The only "audience" who regularly seems to get aggravated by my comments if they are negative towards TLG is you and sometimes @eiffel006 . You make yourself seem more important than you are. Neither are my comments in any way important, they're just my personal opinion, something that is part of any comments section. Plus when it comes to products I often enough have positive comments about them. It's mainly the company behind them that I am critical of.
As for the Fiat, I didn't criticize the build but the parts quality! Again, a nuance as you like to point out.
By the way, insinuating a possible mental illness is also an insult. I don't know why you feel the need to keep doing that.
Anyway, moving on. We quite simply will have to agree to disagree on some things.
Seeing how uncreative LEGO's themes got (90% licenses, rest is basically City vehicles), I'm really surprised how they got these profits.
What is "rebuilding inventory"? (second infograph)