Growth against the trend! Lego’s revenue of 17 billion yuan in the first half of the year will open 80 stores in China
On September 2, the Lego Group released its financial report for the first half of the year ending June 30, 2020. The financial report shows that in the first half of 2020, retail sales increased by 14% compared to the same period in 2019, and revenue increased by 7% compared to the same period in 2019, reaching 15.7 billion Danish kroner (17.07 billion yuan); its operating profit increased by 11% to 3.9 billion Danish kroner ( 4.24 billion yuan), of which cash flow was strong, reaching 4.1 billion Danish kroner (4.46 billion yuan). In addition, it has achieved double-digit retail sales growth in major markets such as the Americas, Western Europe, Asia Pacific and China. The Lego Group’s first half of 2020 financial report briefing Lego Group CEO Niels B. Christiansen said: We have achieved such a strong performance thanks to our amazing team. When the new crown epidemic forces retail stores and offices to close, we do our best to protect our own safety while providing opportunities for children and families around the world to have fun. I want to thank my colleagues for their extraordinary contributions and unremitting efforts. 01Long-life authorized IP series performed the best in the first half of 2020. In the first half of 2020, in all LEGO product portfolios, multiple series of long-life authorized IP such as classic cars, movies and animations have been integrated. The financial report shows that LEGO® mechanical group, LEGO® racing series , Lego® Star Wars, Lego® Classic Creative Series, Lego® Disney Princess Series, Lego® Harry Potter and Lego® Racing Series performed the best sales, which also means that the Lego Play experience is for fans of different ages and different hobbies They are quite attractive. Lego continues to explore the Chinese market. On the one hand, the development of IP products tends to be more and more localized. Lego takes its design inspiration to Chinese culture and chooses one of China’s four masterpieces 'Journey to the West' as its inspiration design. Wukong Xiaoxia series, this product covers 8 models, such as Monkey King Golden Mecha, Zhu Master's mobile nail rake, White Dragon Horse Chariot, Red Boy Evil Fire Chariot, etc. On the other hand, it is cooperating with game companies. In January this year, Lego renewed its strategic cooperation with Tencent, and the two sides will deepen cooperation in the fields of video, games, digital child safety, and explore social, intellectual property, and corporate social responsibility. New possibilities for cooperation in the field. At the same time, Lego expanded the product development of game IP, and cooperated with Nintendo to launch the Lego® Super Mario series that integrates digital and physical play, creating a new play experience. The Hangzhou LEGO brand flagship store opened grandly in June 2020. 02 Accelerate the layout of the domestic market. 80 will be located in China. The epidemic will spread across the country. The key reason for the LEGO Group's growth against the trend? Since the epidemic has spread globally this year, the LEGO Group’s business has inevitably been affected. For example, the Group’s factories in Mexico and China were temporarily closed in response to the local government’s epidemic prevention requirements, resulting in increased product freight costs; the group was unable to implement many established plans. Regarding the key reason why the epidemic is still growing against the trend, on September 2, Lego Group CEO Niels B. Christiansen said in an online interview with the reporter of 'Daily Business News' that the epidemic has brought challenges at the same time. , We also discover new opportunities. After our physical retail stores were temporarily closed, more businesses flocked to our e-commerce platforms and channels. Our factories in China and Mexico have experienced short-term closures, leading to supply gaps in some markets, but we have also successfully filled these gaps through flexible adjustments to factories in other regions and the global supply chain. We also very decisively revised the established new product promotion and other brand projects. Ni Zhiwei further stated that the company’s strong business growth comes from product innovation, and we have a very strong product line; it is also due to our continuous investment in e-commerce business and retail network expansion in the past 18 months; in China, although our stores It also experienced a short period of closure, but when the store reopened for business, we found that consumers were still willing and assured to return to the physical store to shop. This also reflects our long-term effort and investment in brand building. During the reporting period, in the first half of 2020, the number of visitors to the LEGO.com e-commerce platform doubled over the same period last year, exceeding 100 million. In the first six months, the number of downloads of the LEGO Online Building Instructions app has doubled to 2 million times. In addition, the plan to open 120 new branded retail stores worldwide in 2020 is gradually advancing, 80 of which will be located in China. In the first half of 2020, the LEGO Group opened a total of 46 branded retail stores, 30 of which are located in China.