How Lego became one of the Most Valuable Brands in the World
Briefly flirting with bankruptcy, Lego went from failing toymaker to briefly the world's most valuable brand in less than 20 years. Today, it's pandemic resistant and poised to overtake the industry.
The post How Lego became one of the Most Valuable Brands in the World appeared first on LUXUO.
In the last 15 years, Lego has grown into the Apple of toys; coming a long way since its founding in 1932. The beloved toy company had never posted a loss till 1998. At the turn of the 21st century, Lego found itself $800 million in debt with sales down 30% year-on-year. Today, it is a profit-generating, design-driven marvel built around premium, intuitive toys with some play-sets becoming alternate investment assets themselves (based on resale values).
By 2003, Lego?s worst performing year, consultants were advising the danish toymaker to diversify. Toy bricks were obsolete they argued, taking their advice Lego produced branded apparel, children?s jewellery and even theme parks – it was advice that almost bankrupted the company. ?We?re running out of cash? [and] likely won?t survive,? said Lego?s CEO at the time, Jørgen Vig Knudstorp . However, in a little more than 10 years, the privately owned, family controlled Lego Group overtook Ferrari to become the world?s most powerful brand. Just how did Lego take its near bankruptcy to stratospheric, pandemic-resistant success in under 20 years"
How Lego became one of the Most Valuable Brands in the World
In 2015, Lego became t...
The post How Lego became one of the Most Valuable Brands in the World appeared first on LUXUO.
In the last 15 years, Lego has grown into the Apple of toys; coming a long way since its founding in 1932. The beloved toy company had never posted a loss till 1998. At the turn of the 21st century, Lego found itself $800 million in debt with sales down 30% year-on-year. Today, it is a profit-generating, design-driven marvel built around premium, intuitive toys with some play-sets becoming alternate investment assets themselves (based on resale values).
By 2003, Lego?s worst performing year, consultants were advising the danish toymaker to diversify. Toy bricks were obsolete they argued, taking their advice Lego produced branded apparel, children?s jewellery and even theme parks – it was advice that almost bankrupted the company. ?We?re running out of cash? [and] likely won?t survive,? said Lego?s CEO at the time, Jørgen Vig Knudstorp . However, in a little more than 10 years, the privately owned, family controlled Lego Group overtook Ferrari to become the world?s most powerful brand. Just how did Lego take its near bankruptcy to stratospheric, pandemic-resistant success in under 20 years"
How Lego became one of the Most Valuable Brands in the World
In 2015, Lego became t...
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