In Brief
Lego is expanding its offerings beyond traditional toys by investing in the metaverse and collaborating with Epic Games to create a family-friendly virtual world.
According to the Financial Times, Lego’s revenue increased by 17% to $9.3 billion in 2022, and its net profits grew by 4%.
The Trust Project is a worldwide group of news organizations working to establish transparency standards.
Lego, the renowned Danish toy manufacturer known worldwide for its vibrant plastic blocks, has set its sights on broadening its entertainment offerings into new digital markets. The company is still planning to expand into the metaverse and is partnering with Epic Games, the gaming engine company, to launch a virtual world.
Fortnite creator, Epic Games, announced a partnership with Lego in April last year. The two companies set plans to build a family-friendly metaverse for children to enjoy “an immersive, creatively inspiring, and engaging digital experience.” The same month, Lego and Sony invested $2 billion into Epic Games for the metaverse platform’s creation that would provide a secure virtual space for kids, bringing them closer to the brand.
“We are doing a lot of things on the digital side. That is where we are upping the investment. We know very well how to immerse consumers into the Lego universe in stores. We’re working very hard to create that feeling of getting into the Lego brand universe also digitally,”
Lego CEO Niels Christiansen told the Financial Times.
In 2022, Lego’s revenues increased by 17% to $9.3 billion, and their net profits grew by 4% to $2 billion, even though they faced challenges from increased expenses for raw materials, energy, and transportation, FT reported.
According to FT, Lego is also establishing new factories in Vietnam and the US by 2024 and 2025, respectively, to take advantage of growth opportunities outside of Europe. The company has increased its number of Lego stores to 904 after it opened 155 stores last year.
Many toy brands are facing challenges in attracting children away from digital devices. With the increasing use of technology and the availability of digital games, children spend more time on screens than ever before. This trend has affected the traditional toy industry, making it harder for companies to sell physical toys and games. As a result, toy brands like Lego are exploring new strategies, such as developing new products, including the metaverse, to remain competitive and engage with children who are enticed to digital devices.
Read more:
Disclaimer
Any data, text, or other content on this page is provided as general market information and not as investment advice. Past performance is not necessarily an indicator of future results.
