Toymaker Lego sees positive performance in H1
Global Business

The Danish toymaker, the Lego Group, published on Tuesday its performance in the first half of 2019, with both sales and revenue upbeat. And the CEO, Niels B. Christiansen, attributed the growth to cooperation with its retail partners and the experience of creating fun for consumers of all ages.

According to the company's report, Lego's global sales grew five percent year on year, while its revenue rose four percent to more than 2.1 billion U.S. dollars. The toy giant also stated that growth in established markets like the United States and Western Europe grew by single digits. 

"We are satisfied with our performance given the transformative shifts which continue to reshape the global toy industry," the CEO said in a statement. 

China continues to be a bright spot for Lego as the company saw a strong double-digit growth in consumer sales here in the first half of 2019. "Playing with Lego is providing kids with basic skills around collaborating, creativity, problem solving and resilience," the CEO explained company's success in China, adding that Lego can fit what Chinese parents desire. 

Niels B. Christiansen, the CEO of the Lego Group, speaks with CGTN. /CGTN Photo

Niels B. Christiansen, the CEO of the Lego Group, speaks with CGTN. /CGTN Photo

Meanwhile, Christiansen mentioned that by the end of year, Lego would have more than 140 stores in 35 cities across the country. "That really helps build the brand, providing willingness, knowledge and excitement among kids to play with Lego," Christiansen said. 

Given that video games and smartphones are increasingly catching kid's eyes, the traditional toy sector is facing challenges. 

To survive amid the fierce competition, Christiansen remarked that product innovation is the top priority. "First of all, product innovation is really important. And we invest a lot behind that for China and also for the globe," he told CGTN. 

He mentioned that the change of distribution channel is another thing that toy brand should pay attention to in the era of digitization. The CEO recommends the role of e-commerce, saying that Lego is partnering with e-commerce platforms to help Lego approach more customers.