The manufacturer expects that stores that appeal to children will help boost online sales as well.
Sales of toys in physical stores around the world have been steadily declining. The pandemic has "contributed" to this to a large extent. Yes, and competition in the form of online sales also had a positive effect on offline sales. However, Lego has far-reaching plans for physical stores, and the company is paying close attention to the Asian region.
Within two years, the world-famous construction materials manufacturer almost doubled the number of stores in China, bringing its number to 300 in 85 Chinese cities. At the end of 2020, the number of stores is already 220, and the first Lego retail space was opened in China only in 2016.
This interest in East Asia is primarily because more than two-thirds of the world's children are projected to live in this region by 2032. Of course, a brand as big as Lego cannot ignore China and plans to strengthen its physical presence here significantly. China is also one of the most promising markets, with sales growth already in double digits.
Although the main bet on the sale of toys, including Lego, in today's world is online sales, physical stores' opening is still a key factor for China. And primarily because Lego constructors are a relatively new toy for this region. Unlike parents in European countries, most Chinese moms and dads did not play as children with the bricks we know so well and cannot pass that experience on to their children. It is where we need beautiful interactive retail spaces, where a child can come and play with Lego, see huge figures made of bricks, like bright dragons or cute pandas, and assemble their first creations under the supervision of consultants.
17 DECEMBER 2020, China