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January 9, 2015 4:06 AM Subscribe
How LEGO Became the Apple of Toys Fast Company details LEGO's near collapse and subsequent rise.
Thanks. Here's a Business Insider article from earlier this year about the turnaround.
posted by Fleebnork at 4:48 AM on January 9, 2015 [1 favorite]
posted by Fleebnork at 4:48 AM on January 9, 2015 [1 favorite]
My name is Alonzo Mosley, a LEGO fanatic, and I approve of this post.
posted by AlonzoMosleyFBI at 4:56 AM on January 9, 2015 [1 favorite]
posted by AlonzoMosleyFBI at 4:56 AM on January 9, 2015 [1 favorite]
Reading about LEGO Fusion, one wonders what could've happened had LEGO instead of Mickeysof bought Minecraft....
posted by MartinWisse at 5:03 AM on January 9, 2015 [1 favorite]
posted by MartinWisse at 5:03 AM on January 9, 2015 [1 favorite]
LEGO boomed when they figured out that kids will buy the same bricks over and over in order to complete specific sets. For example a kid will build a Star Wars X-wing set and then go buy another Star Wars TIE Fighter set, even though 90% of the bricks are exactly the same. The fiction on kids creatively building things from imagination remains, even though in reality all they are really doing is consuming the product and following directions. Sure, the old random brick sets are still available, but they ship from Japan at a premium price.
posted by The 10th Regiment of Foot at 5:38 AM on January 9, 2015
posted by The 10th Regiment of Foot at 5:38 AM on January 9, 2015
Reading about LEGO Fusion, one wonders what could've happened had LEGO instead of Mickeysof bought Minecraft....
Considering the disaster that was Lego Universe maybe LEGO would be a bit shy in investing in computer game development.
posted by antiwiggle at 5:51 AM on January 9, 2015
Considering the disaster that was Lego Universe maybe LEGO would be a bit shy in investing in computer game development.
posted by antiwiggle at 5:51 AM on January 9, 2015
LEGO boomed when they figured out that kids will buy the same bricks over and over in order to complete specific sets. For example a kid will build a Star Wars X-wing set and then go buy another Star Wars TIE Fighter set, even though 90% of the bricks are exactly the same. The fiction on kids creatively building things from imagination remains, even though in reality all they are really doing is consuming the product and following directions. Sure, the old random brick sets are still available, but they ship from Japan at a premium price.
Most of what you wrote is inaccurate rant or just plain untrue and I'm having trouble deciding whether you're being wildly sarcastic or just don't know what you're talking about.
posted by Fleebnork at 5:54 AM on January 9, 2015 [18 favorites]
Most of what you wrote is inaccurate rant or just plain untrue and I'm having trouble deciding whether you're being wildly sarcastic or just don't know what you're talking about.
posted by Fleebnork at 5:54 AM on January 9, 2015 [18 favorites]
If anything, Apple is the LEGO of consumer soft/hardware
posted by MangyCarface at 6:01 AM on January 9, 2015 [3 favorites]
posted by MangyCarface at 6:01 AM on January 9, 2015 [3 favorites]
So let me get this straight, LEGO was doing terrible because they didn't know how to capitalize on why their toys are so popular until they were convinced to try new ideas that they thought would never work but were all based around how people actually play with LEGO?
posted by Mr.Encyclopedia at 6:03 AM on January 9, 2015
posted by Mr.Encyclopedia at 6:03 AM on January 9, 2015
all they are really doing is consuming the product and following directions
I'd like to introduce you to my five-year-old. This week he built a mechanic garage for upgrading the robots he builds. A few weeks ago we spent half a day building a booby-trapped dungeon to run hapless minifigs through. I don't think he's unique in the way he plays.
posted by pajamazon at 6:09 AM on January 9, 2015 [13 favorites]
I'd like to introduce you to my five-year-old. This week he built a mechanic garage for upgrading the robots he builds. A few weeks ago we spent half a day building a booby-trapped dungeon to run hapless minifigs through. I don't think he's unique in the way he plays.
posted by pajamazon at 6:09 AM on January 9, 2015 [13 favorites]
So let me get this straight, LEGO was doing terrible because they didn't know how to capitalize on why their toys are so popular until they were convinced to try new ideas that they thought would never work but were all based around how people actually play with LEGO?
Kind of. LEGO was doing badly because it replaced its designers and managers with people who knew a lot about design and management but nothing about toys in general and LEGO in particular.
It wasn't until they in turn got replaced with people who knew about toys, about LEGO, about children and about manufacturing that things started to get better.
all they are really doing is consuming the product and following directions
That is exactly the kind of thinking that got LEGO into trouble in the first place.
posted by antiwiggle at 6:32 AM on January 9, 2015 [1 favorite]
Kind of. LEGO was doing badly because it replaced its designers and managers with people who knew a lot about design and management but nothing about toys in general and LEGO in particular.
It wasn't until they in turn got replaced with people who knew about toys, about LEGO, about children and about manufacturing that things started to get better.
all they are really doing is consuming the product and following directions
That is exactly the kind of thinking that got LEGO into trouble in the first place.
posted by antiwiggle at 6:32 AM on January 9, 2015 [1 favorite]
Sure, the old random brick sets are still available, but they ship from Japan at a premium price.
Um, what?
posted by smackfu at 6:45 AM on January 9, 2015 [1 favorite]
Um, what?
posted by smackfu at 6:45 AM on January 9, 2015 [1 favorite]
OMG they're making a sequel to the LEGO Movie!
What's the word I'm looking for?
posted by ZipRibbons at 6:49 AM on January 9, 2015 [2 favorites]
What's the word I'm looking for?
posted by ZipRibbons at 6:49 AM on January 9, 2015 [2 favorites]
The fiction on kids creatively building things from imagination remains, even though in reality...
you've never met my kid, so I'll give you a pass.
posted by From Bklyn at 7:04 AM on January 9, 2015
you've never met my kid, so I'll give you a pass.
posted by From Bklyn at 7:04 AM on January 9, 2015
Sure, the old random brick sets are still available, but they ship from Japan at a premium price.
The Lego Store in Downtown Disney in Orlando sells them, up to bucket size. They don't seem to carry any sort of import price markup (beyond the fact that they are Lego being sold in essentially a Disney tourist mall) or packaging that would make them look like Japanese imports either.
posted by Badgermann at 7:06 AM on January 9, 2015 [1 favorite]
The Lego Store in Downtown Disney in Orlando sells them, up to bucket size. They don't seem to carry any sort of import price markup (beyond the fact that they are Lego being sold in essentially a Disney tourist mall) or packaging that would make them look like Japanese imports either.
posted by Badgermann at 7:06 AM on January 9, 2015 [1 favorite]
Eh, I'm very glad that they managed this turnaround, I just really wish it hadn't come at the cost of gendering their products so much more.
posted by Zarkonnen at 7:10 AM on January 9, 2015 [4 favorites]
posted by Zarkonnen at 7:10 AM on January 9, 2015 [4 favorites]
The "old Lego" had plenty of gendered themes, for instance Belville.
posted by smackfu at 7:12 AM on January 9, 2015 [1 favorite]
posted by smackfu at 7:12 AM on January 9, 2015 [1 favorite]
Sure, the old random brick sets are still available, but they ship from Japan at a premium price.
30 seconds of searching on Amazon disproves this. And that's before you include Lego Education sets (Available with Amazon Prime, even!) and the back wall of every Lego store which is a pick-your-own random brick extravaganza (limit of two on the horses, sorry).
posted by davros42 at 7:13 AM on January 9, 2015 [4 favorites]
30 seconds of searching on Amazon disproves this. And that's before you include Lego Education sets (Available with Amazon Prime, even!) and the back wall of every Lego store which is a pick-your-own random brick extravaganza (limit of two on the horses, sorry).
posted by davros42 at 7:13 AM on January 9, 2015 [4 favorites]
@smackfu - Yeah, good point, I'd repressed those memories.
Are they doing anything interesting with Mindstorms these days?
posted by Zarkonnen at 7:16 AM on January 9, 2015
Are they doing anything interesting with Mindstorms these days?
posted by Zarkonnen at 7:16 AM on January 9, 2015
EV3 is the current Mindstorms set that's about a year old. The control brick is ARM-based and runs Linux, so it's pretty advanced.
posted by smackfu at 7:20 AM on January 9, 2015
posted by smackfu at 7:20 AM on January 9, 2015
Oh, awesome! I sort of lost track after Mindstorms v2 ages ago. Really glad that's an ongoing thing. I think the problem is just that the toy stores here in Switzerland must me useless at stocking the cool kinds of lego.
posted by Zarkonnen at 7:21 AM on January 9, 2015
posted by Zarkonnen at 7:21 AM on January 9, 2015
I just really wish it hadn't come at the cost of gendering their products so much more.
But their Friends line is a huge success and has expanded the fan base.
Honestly, I always thought it was the willingness to license Star Wars, Harry Potter, super hero, and LOTR sets is what saved them. I wish they didn't have to do the fanboy thing, as the original themes such as Space, Pirates, and Castle are either not getting new updates or are just get pushed out of regular stores.
But if it means keeping LEGO independent and not a subsidiary of Hasbro, Mattel, or Disney, then I'm all for it.
posted by FJT at 7:23 AM on January 9, 2015 [2 favorites]
But their Friends line is a huge success and has expanded the fan base.
Honestly, I always thought it was the willingness to license Star Wars, Harry Potter, super hero, and LOTR sets is what saved them. I wish they didn't have to do the fanboy thing, as the original themes such as Space, Pirates, and Castle are either not getting new updates or are just get pushed out of regular stores.
But if it means keeping LEGO independent and not a subsidiary of Hasbro, Mattel, or Disney, then I'm all for it.
posted by FJT at 7:23 AM on January 9, 2015 [2 favorites]
Mindstorms EV3 is also pretty damn expensive ($350 / 459 SFr), so not many shops are going to be stocking it.
posted by smackfu at 7:24 AM on January 9, 2015 [1 favorite]
posted by smackfu at 7:24 AM on January 9, 2015 [1 favorite]
LEGO was doing badly because it replaced its designers and managers with people who knew a lot about design and management but nothing about toys in general and LEGO in particular.
It wasn't until they in turn got replaced with people who knew about toys, about LEGO, about children and about manufacturing that things started to get better.
And to expand on what you wrote, there were also methods and processes that were frankly quite wasteful. At the time, designers could commission as many new parts as they wanted, which was expensive. There were supply chain inefficiencies that got tightened up with getting product to retailers. Part of the revitalization was some pretty extreme budgeting adjustments.
OMG they're making a sequel to the LEGO Movie!
What's the word I'm looking for?
Probably something like this.
posted by Fleebnork at 7:25 AM on January 9, 2015 [2 favorites]
It wasn't until they in turn got replaced with people who knew about toys, about LEGO, about children and about manufacturing that things started to get better.
And to expand on what you wrote, there were also methods and processes that were frankly quite wasteful. At the time, designers could commission as many new parts as they wanted, which was expensive. There were supply chain inefficiencies that got tightened up with getting product to retailers. Part of the revitalization was some pretty extreme budgeting adjustments.
OMG they're making a sequel to the LEGO Movie!
What's the word I'm looking for?
Probably something like this.
posted by Fleebnork at 7:25 AM on January 9, 2015 [2 favorites]
Brick by Brick gives lucid and very detailed account of the turnaround. I bought it for the LEGO tie-in but learned a lot about business when I read it.
posted by jeffbarr at 7:38 AM on January 9, 2015
posted by jeffbarr at 7:38 AM on January 9, 2015
Fascinating. My kid, 9, loved the Lego Movie (as did I!) but I felt that despite the title it was almost divorced from product placement; the movie was pretty good about being 95% story and 5% (at most) "Lego bricks were something you might actually buy and play with." In my experience I'd be about as likely to see a kid building with Lego as with Tinkertoys or Lincoln Logs. It's cool to learn they're stlll making money from actual toys, and developing new things!
posted by escabeche at 7:48 AM on January 9, 2015
posted by escabeche at 7:48 AM on January 9, 2015
A lot of people hate on Bionicle but it was hugely popular and was one of the things that saved Lego from bankruptcy. It has great pieces (particularly ball-and-socket joints IIRC) for building giant Lego mechs too.
posted by EndsOfInvention at 8:00 AM on January 9, 2015
posted by EndsOfInvention at 8:00 AM on January 9, 2015
I just really wish it hadn't come at the cost of gendering their products so much more.
I have pretty successfully gotten my five year old daughter hooked on LEGO and, yes, she loves the Friends sets. But she also loves everything else I buy which includes... well, everything. When a bad guy comes in and steals something, she sends out Superman, Wonder Woman, Buzz Lightyear and a Teenage Mutant Ninja Turtle off to fight them (Not to mention when she occasionally steals Superman's cape, puts it on one of the Friends figures and dubs here "Wonder Girl").
posted by AlonzoMosleyFBI at 8:13 AM on January 9, 2015 [3 favorites]
I have pretty successfully gotten my five year old daughter hooked on LEGO and, yes, she loves the Friends sets. But she also loves everything else I buy which includes... well, everything. When a bad guy comes in and steals something, she sends out Superman, Wonder Woman, Buzz Lightyear and a Teenage Mutant Ninja Turtle off to fight them (Not to mention when she occasionally steals Superman's cape, puts it on one of the Friends figures and dubs here "Wonder Girl").
posted by AlonzoMosleyFBI at 8:13 AM on January 9, 2015 [3 favorites]
We got the 'lil Creatures some pretty badass LEGO sets for Christmas this year (a castle and an airport, respectively). They loved putting them together, and even managed to keep them intact for almost two whole weeks! Then somebody, not saying who *sidelong glances at the 4-year-old* got a little bit exited with a foam sword and suddenly the castle was more of a ruin. The 6-year-old cried about it for all of 15 seconds and then realized he now had a whole bunch of awesome bricks with which to a build a new and better "Tower of Zagos(sp?)". The cargo plane followed suit and has been converted into a spaceship full of medieval gold.
It's entirely possible that some kids buy sets, put them together, and then never dissasemble them. That's definitely how my wife prefers to play with them (the kids got her a cool campervan/RV set and it's still in pristine condition in her office). If that's how my kids wanted to play with them I would just buy them model kits instead. I'm sort of allergic to the licensed sets, too, and steer/manipulate my kids into wanting the "Castle", "City" and "LEGO Space" sets instead. If LEGO going after some cynical ideal of getting (some) folks to buy more than they need means that they'll still be around so I can buy the sets that I want and continue to foster creative, mod-happy play with my kids...well that's just fine by me then.
posted by Doleful Creature at 8:30 AM on January 9, 2015 [2 favorites]
It's entirely possible that some kids buy sets, put them together, and then never dissasemble them. That's definitely how my wife prefers to play with them (the kids got her a cool campervan/RV set and it's still in pristine condition in her office). If that's how my kids wanted to play with them I would just buy them model kits instead. I'm sort of allergic to the licensed sets, too, and steer/manipulate my kids into wanting the "Castle", "City" and "LEGO Space" sets instead. If LEGO going after some cynical ideal of getting (some) folks to buy more than they need means that they'll still be around so I can buy the sets that I want and continue to foster creative, mod-happy play with my kids...well that's just fine by me then.
posted by Doleful Creature at 8:30 AM on January 9, 2015 [2 favorites]
I really don't understand the general preference of generic over licensed sets. Other than the fact a licensed set is more likely to contain weird specialty pieces there's nothing stopping a kid from turning their Hogwarts playset into a Tower of Zagos or making a cool spaceship out of a batmobile and a sewer.
I gotta tell you, I have especially high hopes for my 3.5-year old regarding a bunch of Minecraft playsets we just got plus a big bin of family LEGO passed down from the very first Castle and Space sets.
posted by Mr.Encyclopedia at 8:39 AM on January 9, 2015
I gotta tell you, I have especially high hopes for my 3.5-year old regarding a bunch of Minecraft playsets we just got plus a big bin of family LEGO passed down from the very first Castle and Space sets.
posted by Mr.Encyclopedia at 8:39 AM on January 9, 2015
I guess Lego is Apple, in the sense that both have tried to use force (in the form of the legal system) to prevent third parties from making products that interoperate with their products. I'm no toy expert, but I believe the technical term for this type of behavior is "a dick move".
Also, Zagos invoking chaos i̡s Z͠al̷g͠o̡ i͘s̵ Ņig̷ht̨ma͏r͠e M̛̿̔́͐͘͝Ȍ̴ͬ̀͞O̓̀ͬ̄ͮNͧ͡ ̡̑̈́̓̋̑͂ͫ̽͟Ś̍̊̑̈́̑̔̈Ḣ̛̌́̀͢E̢̓́ͮͩ̏͌̽̈̕ ͆ͦ҉̢I̸̸̛͗͋̾̑̅̄̂̈́Ŝ̍́̃͆ͮ̂̓ ̓̄̕͞C̴̨̐͑ͯ̊Oͪ͛̆ͫͩ̐ͤ҉͟M̂̄͊̉͛̄͒͞͝Įͥͨ͢N̡͒̓ͮ̓̉͗G̐̓͊̌̽̊ͮ̊ͨ.
HTH.
posted by sourcequench at 8:53 AM on January 9, 2015
Also, Zagos invoking chaos i̡s Z͠al̷g͠o̡ i͘s̵ Ņig̷ht̨ma͏r͠e M̛̿̔́͐͘͝Ȍ̴ͬ̀͞O̓̀ͬ̄ͮNͧ͡ ̡̑̈́̓̋̑͂ͫ̽͟Ś̍̊̑̈́̑̔̈Ḣ̛̌́̀͢E̢̓́ͮͩ̏͌̽̈̕ ͆ͦ҉̢I̸̸̛͗͋̾̑̅̄̂̈́Ŝ̍́̃͆ͮ̂̓ ̓̄̕͞C̴̨̐͑ͯ̊Oͪ͛̆ͫͩ̐ͤ҉͟M̂̄͊̉͛̄͒͞͝Įͥͨ͢N̡͒̓ͮ̓̉͗G̐̓͊̌̽̊ͮ̊ͨ.
HTH.
posted by sourcequench at 8:53 AM on January 9, 2015
I guess Lego is Apple, in the sense that both have tried to use force (in the form of the legal system) to prevent third parties from making products that interoperate with their products.
Mega Blocks don't just "interoperate", they are "LEGO clones", which identically copy the Lego System bricks.
LEGO's patents for their "stud and tube" type of interlocking bricks expired in 1989, which opened the door for Mega and other brands to duplicate their System bricks. Lego tried to claim trademark of the brick interlocking system, but was defeated in court, as the system was ruled "functional" and not subject to trademark.
I believe the technical term for this type of behavior is "a dick move".
Interesting, that's how I feel about making cheap knockoffs of someone else's product.
posted by Fleebnork at 9:40 AM on January 9, 2015 [3 favorites]
Mega Blocks don't just "interoperate", they are "LEGO clones", which identically copy the Lego System bricks.
LEGO's patents for their "stud and tube" type of interlocking bricks expired in 1989, which opened the door for Mega and other brands to duplicate their System bricks. Lego tried to claim trademark of the brick interlocking system, but was defeated in court, as the system was ruled "functional" and not subject to trademark.
I believe the technical term for this type of behavior is "a dick move".
Interesting, that's how I feel about making cheap knockoffs of someone else's product.
posted by Fleebnork at 9:40 AM on January 9, 2015 [3 favorites]
I really don't understand the general preference of generic over licensed sets.
Licenced sets are way more expensive since they have to pay for the license.
My current favourite Lego sets I'm lusting after are the Arctic sets and the City cargo train (alright, alright, and the UCS Slave I...).
posted by EndsOfInvention at 9:45 AM on January 9, 2015 [1 favorite]
Licenced sets are way more expensive since they have to pay for the license.
My current favourite Lego sets I'm lusting after are the Arctic sets and the City cargo train (alright, alright, and the UCS Slave I...).
posted by EndsOfInvention at 9:45 AM on January 9, 2015 [1 favorite]
The whole point of patents expiring is that everyone should eventually be free to use a technology or art.
The dick move is taking a wholly inferior product to market, and disappointing millions of children whose family members didn't understand the difference.
posted by explosion at 9:48 AM on January 9, 2015 [9 favorites]
The dick move is taking a wholly inferior product to market, and disappointing millions of children whose family members didn't understand the difference.
posted by explosion at 9:48 AM on January 9, 2015 [9 favorites]
The 10th Regiment of Foot: "Sure, the old random brick sets are still available, but they ship from Japan at a premium price."
I can get them at the Walgreens on the corner for $9.99/bucket. During the lead up to Christmas, there are more choices of buckets.
posted by Eyebrows McGee at 9:52 AM on January 9, 2015
I can get them at the Walgreens on the corner for $9.99/bucket. During the lead up to Christmas, there are more choices of buckets.
posted by Eyebrows McGee at 9:52 AM on January 9, 2015
Those of you with Friends figures can now make powermech suits for them, though.
posted by emjaybee at 10:23 AM on January 9, 2015 [3 favorites]
posted by emjaybee at 10:23 AM on January 9, 2015 [3 favorites]
loquacious pointed out previously quite why Lego is superior to apparently compatible bricks. It's really quite a read.
posted by ambrosen at 10:32 AM on January 9, 2015 [2 favorites]
posted by ambrosen at 10:32 AM on January 9, 2015 [2 favorites]
It wasn't until they in turn got replaced with people who knew about toys, about LEGO, about children and about manufacturing making toys based on popular movies, making video games based on toys based on popular movies, and making movies based on video games based on toys based on popular movies that things started to get better.
posted by Sys Rq at 10:34 AM on January 9, 2015
posted by Sys Rq at 10:34 AM on January 9, 2015
For those interested in the history, there's the LEGO Story on Youtube, a short 3D-Animated film that does a quick run through of the history of the company. Including it's start as a wooden toy company and surviving two separate and devastating factory fires.
posted by FJT at 11:05 AM on January 9, 2015
posted by FJT at 11:05 AM on January 9, 2015
The fiction on kids creatively building things from imagination remains, even though in reality all they are really doing is consuming the product and following directions.
That is really not true in my experience. Most kids will build the set to instructions at least once, and then they'll get sick of it and build whatever the fuck else they want. Also, in my family at least, there are a bunch of hand-me-down lego sets floating around, used by whatever kid is in the ideal lego age range at the moment, and these are sets that have been carted across continents and oceans over decades. The kids might make one half-hearted effort at using the set for its intended purpose (like, making a police station or a spaceship), before abandoning that in favor of building whatever they want.
The last time I used a lego set as it was intended to be used as a kid was when we worked with them to learn basic programming in elementary school. Which was when I built a car and then programmed it in BASIC or FORTRAN or whatever to make it run. (Which is an awesome kid project by the way, highly recommended.) Other than that, my legos were basically...SimCity in physical form for me. Which, hey, there's an idea. Lego SimCity! Someone should make that happen.
posted by yasaman at 11:05 AM on January 9, 2015
That is really not true in my experience. Most kids will build the set to instructions at least once, and then they'll get sick of it and build whatever the fuck else they want. Also, in my family at least, there are a bunch of hand-me-down lego sets floating around, used by whatever kid is in the ideal lego age range at the moment, and these are sets that have been carted across continents and oceans over decades. The kids might make one half-hearted effort at using the set for its intended purpose (like, making a police station or a spaceship), before abandoning that in favor of building whatever they want.
The last time I used a lego set as it was intended to be used as a kid was when we worked with them to learn basic programming in elementary school. Which was when I built a car and then programmed it in BASIC or FORTRAN or whatever to make it run. (Which is an awesome kid project by the way, highly recommended.) Other than that, my legos were basically...SimCity in physical form for me. Which, hey, there's an idea. Lego SimCity! Someone should make that happen.
posted by yasaman at 11:05 AM on January 9, 2015
It wasn't until they in turn got replaced with people who knew about making toys based on popular movies, making video games based on toys based on popular movies, and making movies based on video games based on toys based on popular movies that things started to get better.
Claiming that LEGO's success is only due to licensed themes is a disservice to the designers who work for LEGO creating their own products.
The licensed themes have helped bring in money, but they're far from being the main focus of the company. There were sweeping efficiency processes implemented when Knudstorp took control. See the article I linked upthread.
From the main article link:
Friends, like Ninjago and Chima—and The Lego Movie and its coming sequel—represents the company’s increasing reliance on its own intellectual property. Licensing deals still flourish, Knudstorp says, "but they contribute no more of our business than about a third," he adds. "They’re on a list of about 10 things that drive the growth of the company."
posted by Fleebnork at 11:11 AM on January 9, 2015 [3 favorites]
Claiming that LEGO's success is only due to licensed themes is a disservice to the designers who work for LEGO creating their own products.
The licensed themes have helped bring in money, but they're far from being the main focus of the company. There were sweeping efficiency processes implemented when Knudstorp took control. See the article I linked upthread.
From the main article link:
Friends, like Ninjago and Chima—and The Lego Movie and its coming sequel—represents the company’s increasing reliance on its own intellectual property. Licensing deals still flourish, Knudstorp says, "but they contribute no more of our business than about a third," he adds. "They’re on a list of about 10 things that drive the growth of the company."
posted by Fleebnork at 11:11 AM on January 9, 2015 [3 favorites]
Interesting, that's how I feel about making cheap knockoffs of someone else's product.
You just said their patent expired years ago - I'm not really seeing the problem.
posted by atoxyl at 11:26 AM on January 9, 2015 [1 favorite]
You just said their patent expired years ago - I'm not really seeing the problem.
posted by atoxyl at 11:26 AM on January 9, 2015 [1 favorite]
A third! But really, licensing could be a total loss leader, bringing in no direct profit at all, but that doesn't mean it isn't what's hipping the kids to the brand.
posted by Sys Rq at 11:29 AM on January 9, 2015
posted by Sys Rq at 11:29 AM on January 9, 2015
You just said their patent expired years ago - I'm not really seeing the problem.
I was not attempting to give the phrase "dick move" any legal relevance. I can think cheap knockoff brands are crap even though they are legally produced. Mega Bloks are well known for being crappy, with pieces that often don't fit together or hold together. They are the most cynical kind of cash-grab imitation product.
A third! But really, licensing could be a total loss leader, bringing in no direct profit at all, but that doesn't mean it isn't what's hipping the kids to the brand.
I'm not denying the popularity of licensed themes, just correcting the snarky implication that Lego's success is only due to licensed themes.
Around the same time as the Star Wars and Harry Potter sets were introduced, Lego also created Bionicle, which was a huge seller with its own following and media presence. It was their top selling product line in both 2003 and 2006.
Lego has more recently seen much success with their own Ninjago and Legends of Chima brands, and they continue to produce their own Space, City, and Castle themes, as well as the classic brick buckets, Technic, collectible Minifigures, Lego Movie sets and so on.
Often times in Lego threads I find myself doing misinformation management because people snark about whatever elements of the company they dislike, and often make claims about things that are exaggerations or just outright false.
posted by Fleebnork at 12:11 PM on January 9, 2015 [6 favorites]
I was not attempting to give the phrase "dick move" any legal relevance. I can think cheap knockoff brands are crap even though they are legally produced. Mega Bloks are well known for being crappy, with pieces that often don't fit together or hold together. They are the most cynical kind of cash-grab imitation product.
A third! But really, licensing could be a total loss leader, bringing in no direct profit at all, but that doesn't mean it isn't what's hipping the kids to the brand.
I'm not denying the popularity of licensed themes, just correcting the snarky implication that Lego's success is only due to licensed themes.
Around the same time as the Star Wars and Harry Potter sets were introduced, Lego also created Bionicle, which was a huge seller with its own following and media presence. It was their top selling product line in both 2003 and 2006.
Lego has more recently seen much success with their own Ninjago and Legends of Chima brands, and they continue to produce their own Space, City, and Castle themes, as well as the classic brick buckets, Technic, collectible Minifigures, Lego Movie sets and so on.
Often times in Lego threads I find myself doing misinformation management because people snark about whatever elements of the company they dislike, and often make claims about things that are exaggerations or just outright false.
posted by Fleebnork at 12:11 PM on January 9, 2015 [6 favorites]
Not trying to threadsit here, folks.
Just wanted to share a bit of good news that came up in my Facebook feed:
The Science Adventures concept, which features female scientists, has reached 10,000 supporters on Lego Ideas and will be undergoing review for official set production.
Brought to you by the same person who designed the Research Institute set, also a product of Lego Ideas.
posted by Fleebnork at 12:24 PM on January 9, 2015
Just wanted to share a bit of good news that came up in my Facebook feed:
The Science Adventures concept, which features female scientists, has reached 10,000 supporters on Lego Ideas and will be undergoing review for official set production.
Brought to you by the same person who designed the Research Institute set, also a product of Lego Ideas.
posted by Fleebnork at 12:24 PM on January 9, 2015
Often times in Lego threads I find myself doing misinformation management because people snark about whatever elements of the company they dislike, and often make claims about things that are exaggerations or just outright false.
Streamlining the manufacturing process may make more units, but it doesn't shift them. It's not snark -- and certainly not misinformation -- to suggest that marketing (movie and video game tie-ins especially) may have bolstered the Lego brand against kids drifting away from toys and towards "content." And that's not a complaint! It would be silly to accuse a capitalist venture of "selling out" or whatever. Lego figured out how to keep its brand on people's minds, and that's worthy of congratulation. But let's not kid ourselves: It was that movie and those video games and all those merchandising deals that did it, not the new plastic extrusion methods or whatever.
Around the same time as the Star Wars and Harry Potter sets were introduced, Lego also created Bionicle, which was a huge seller with its own following and media presence. It was their top selling product line in both 2003 and 2006.
Sooooo... Shall we assume LEGO® Star Wars™ was the top line of all but those two years?
(Now that's snark!)
posted by Sys Rq at 1:14 PM on January 9, 2015
Streamlining the manufacturing process may make more units, but it doesn't shift them. It's not snark -- and certainly not misinformation -- to suggest that marketing (movie and video game tie-ins especially) may have bolstered the Lego brand against kids drifting away from toys and towards "content." And that's not a complaint! It would be silly to accuse a capitalist venture of "selling out" or whatever. Lego figured out how to keep its brand on people's minds, and that's worthy of congratulation. But let's not kid ourselves: It was that movie and those video games and all those merchandising deals that did it, not the new plastic extrusion methods or whatever.
Around the same time as the Star Wars and Harry Potter sets were introduced, Lego also created Bionicle, which was a huge seller with its own following and media presence. It was their top selling product line in both 2003 and 2006.
Sooooo... Shall we assume LEGO® Star Wars™ was the top line of all but those two years?
(Now that's snark!)
posted by Sys Rq at 1:14 PM on January 9, 2015
In 2011, the top grossing set was the Police Station. (Although four of the top ten are Star Wars.)
posted by smackfu at 1:27 PM on January 9, 2015 [2 favorites]
posted by smackfu at 1:27 PM on January 9, 2015 [2 favorites]
But let's not kid ourselves: It was that movie and those video games and all those merchandising deals that did it, not the new plastic extrusion methods or whatever.
The company was still struggling in 2004, even after the Star Wars and Harry Potter sets had been on the market for years. It wasn't until Knudstorp made CEO and began changing the ways the company did business did they begin to recover.
As I've already quoted, the licensed stuff accounts for one third of their business.
You keep claiming that it's the only reason the company recovered.
posted by Fleebnork at 1:57 PM on January 9, 2015
The company was still struggling in 2004, even after the Star Wars and Harry Potter sets had been on the market for years. It wasn't until Knudstorp made CEO and began changing the ways the company did business did they begin to recover.
As I've already quoted, the licensed stuff accounts for one third of their business.
You keep claiming that it's the only reason the company recovered.
posted by Fleebnork at 1:57 PM on January 9, 2015
Yeah, it seems like basic business reasons that were problems that they fixed: "improving processes, cutting costs, and managing cash flow."
posted by smackfu at 2:09 PM on January 9, 2015
posted by smackfu at 2:09 PM on January 9, 2015
It's pretty scary that they went as long as they did without a strong idea of how much it cost to manufacture bricks and sets, and that some sets were effectively sold at a loss as a result.
posted by ZeusHumms at 2:21 PM on January 9, 2015 [1 favorite]
posted by ZeusHumms at 2:21 PM on January 9, 2015 [1 favorite]
My eight year old niece, daughter of a college English professor and herself a voracious reader, has recently gotten into LEGO. At Christmas her mom lamented the lack of window pieces in current basic sets ("I want her to be able to build a house. I used to build houses. What happened to the windows?").
We ended up getting her the Treehouse kit ourselves, because it had not only windows (that she could incorporate into her basic set) but a few other custom-but-not-ridiculous pieces I thought she'd like (like the ladders). When she opened the package she immediately went into free play mode, not building any of the three models for which the kit included instructions.
Last night I asked her if she'd built the treehouse yet. "No, but I built Rivendell and Lothlorien."
I mean, whenever I got a kit as a kid the first thing I did was build the model from instructions, but then I tore it down and built other stuff with the pieces. It's not like there's a wrong way to enjoy your LEGO, but I was a little surprised that she hadn't built that model at all yet. These kids today with their Rivendells and their Lothloriens.
posted by fedward at 11:42 AM on January 10, 2015 [2 favorites]
We ended up getting her the Treehouse kit ourselves, because it had not only windows (that she could incorporate into her basic set) but a few other custom-but-not-ridiculous pieces I thought she'd like (like the ladders). When she opened the package she immediately went into free play mode, not building any of the three models for which the kit included instructions.
Last night I asked her if she'd built the treehouse yet. "No, but I built Rivendell and Lothlorien."
I mean, whenever I got a kit as a kid the first thing I did was build the model from instructions, but then I tore it down and built other stuff with the pieces. It's not like there's a wrong way to enjoy your LEGO, but I was a little surprised that she hadn't built that model at all yet. These kids today with their Rivendells and their Lothloriens.
posted by fedward at 11:42 AM on January 10, 2015 [2 favorites]
Lego's revitalization brings a bit of mixed feeling for me. I worked for Lego during some of the rough period (2003-2006) and for an element of Lego widely acknowledged as one of the causes for the downturn (Legoland).
We sold boxes of Lego to many happy kids and adult fans of Bionicle, Clikits, Dora the Explorer, Lego Mindstorms, and oh-so-much Star Wars (especially the massive Death Star II--we couldn't keep that in stock). We also sold lots of t-shirts and mugs and keychains (which, ok, Lego minifig keychains are pretty awesome). Picture an amusement park gift shop with Lego values behind it. Strained, translated, overwhelmed Lego values.
I happened to be working the day they called for an all-hands meeting and told us the parks were being sold. If I remember correctly, Kjeld Kirk Kristiansen himself came to explain what had gone wrong and who the new buyers would be and what was going to happen to us in the future. He had a charming Danish accent, like most of the upper administrators of the park, but the news didn't exactly put us in good spirits. Merlin didn't make huge changes during my time there (that would come later) but it's still a shock to go from employee of Lego working at Legoland to employee of somebody else still working at Legoland.
It's great to see Lego getting back to the heart of what it makes it unique. A little weird to have worked at one of the speedbumps along the way.
posted by librarylis at 9:22 PM on January 10, 2015 [3 favorites]
We sold boxes of Lego to many happy kids and adult fans of Bionicle, Clikits, Dora the Explorer, Lego Mindstorms, and oh-so-much Star Wars (especially the massive Death Star II--we couldn't keep that in stock). We also sold lots of t-shirts and mugs and keychains (which, ok, Lego minifig keychains are pretty awesome). Picture an amusement park gift shop with Lego values behind it. Strained, translated, overwhelmed Lego values.
I happened to be working the day they called for an all-hands meeting and told us the parks were being sold. If I remember correctly, Kjeld Kirk Kristiansen himself came to explain what had gone wrong and who the new buyers would be and what was going to happen to us in the future. He had a charming Danish accent, like most of the upper administrators of the park, but the news didn't exactly put us in good spirits. Merlin didn't make huge changes during my time there (that would come later) but it's still a shock to go from employee of Lego working at Legoland to employee of somebody else still working at Legoland.
It's great to see Lego getting back to the heart of what it makes it unique. A little weird to have worked at one of the speedbumps along the way.
posted by librarylis at 9:22 PM on January 10, 2015 [3 favorites]
As I've already quoted, the licensed stuff accounts for one third of their business.
You keep claiming that it's the only reason the company recovered.
I don't keep claiming that. I never once claimed that. It is you who seems to be insisting that it is only business practices and not at all marketing that had an impact. I have never once even insinuated that these are mutually exclusive; indeed, a change in marketing is a change in business practices. All I've claimed is that the licensing--but especially the branching out into other media (lest we forget that Ninjago and Bionicle are much more than just toy sets)--has had a big hand in the turnaround, and that while many behind-the-scenes changes surely staunched the bleeding, it's marketing that actually increased sales and pulled Lego out of the hole.
The company was still struggling in 2004, even after the Star Wars and Harry Potter sets had been on the market for years. It wasn't until Knudstorp made CEO and began changing the ways the company did business did they begin to recover.
Knudstorp became CEO in October 2004. Lego Star Wars: The Video Game (the first of a massively popular video game franchise, which eventually culminated in a massively popular movie) came out in March 2005. Perhaps these are unrelated facts. I do not think they are.
(Incidentally, a third of Lego's business? $1.6 billion; enough to cover the company's worst deficit several times over.)
posted by Sys Rq at 5:11 PM on January 11, 2015
You keep claiming that it's the only reason the company recovered.
I don't keep claiming that. I never once claimed that. It is you who seems to be insisting that it is only business practices and not at all marketing that had an impact. I have never once even insinuated that these are mutually exclusive; indeed, a change in marketing is a change in business practices. All I've claimed is that the licensing--but especially the branching out into other media (lest we forget that Ninjago and Bionicle are much more than just toy sets)--has had a big hand in the turnaround, and that while many behind-the-scenes changes surely staunched the bleeding, it's marketing that actually increased sales and pulled Lego out of the hole.
The company was still struggling in 2004, even after the Star Wars and Harry Potter sets had been on the market for years. It wasn't until Knudstorp made CEO and began changing the ways the company did business did they begin to recover.
Knudstorp became CEO in October 2004. Lego Star Wars: The Video Game (the first of a massively popular video game franchise, which eventually culminated in a massively popular movie) came out in March 2005. Perhaps these are unrelated facts. I do not think they are.
(Incidentally, a third of Lego's business? $1.6 billion; enough to cover the company's worst deficit several times over.)
posted by Sys Rq at 5:11 PM on January 11, 2015
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posted by michaelh at 4:45 AM on January 9, 2015