Investing.com — The toy industry faces a second straight year of declining sales, but Lego’s success provides a silver lining. As many toy companies struggle to keep up with the surge in sales seen during the pandemic, Lego, the Denmark-based company, is experiencing rapid growth. The company’s revenue increased by 13% in the first half of the year, which enabled it to increase its market share.

Eric Handler, the managing director of Roth MKM, noted that the success of Lego has driven the growth of the industry this year. After nearly going bankrupt in the early 2000s, Lego reinvented its business and increased its customer base. This strategy allows it to increase sales despite inflationary market conditions. The company has reported positive annual revenue growth for the past six years.

Lego’s growth strategy includes licensing agreements, targeting adults and children, spreading digital gaming, partnering with studios and streaming services to deliver Lego content, and building manufacturing sites. close to distribution hubs to streamline the supply chain.

Among the company’s successful products are its newly promoted “points of enthusiasm,” or kits that cater to more consumers. This includes fans of franchises like Star Wars and Harry Potter, car enthusiasts, and animal lovers.

James Zahn, editor in chief of The Toy Book, praised Lego’s ability to defy industry trends. According to Zahn, Lego tends to thrive when other companies struggle. He also credits Lego’s ability to stay “ahead of the curve” to its agility during inflationary times, entertainment industry disruptions, and potential tariff increases. He suggested that Lego seems to be two to three steps ahead of its competitors.

This article was created with the support of AI and reviewed by an editor. For more information see our T&C.