The LEGO Formula 1 speed station on Nanjing Road in Shanghai. [Photo provided to chinadaily.com.cn]
The LEGO Group is strengthening its long-term strategy in China with continued investments in product innovation, retail optimization and brand building, bolstered by the highly anticipated opening of the country's first-ever LEGOLAND this summer.
Niels B. Christiansen, CEO of the LEGO Group, said, "2025 is a big year for our brand in China," pointing to a series of brand activities designed to engage a wide spectrum of consumers, from children to adult fans.
The upcoming opening of LEGOLAND Shanghai stands out. According to a statement on March 13, 80 percent of the park's ride equipment has already been installed, with half of the rides now entering the testing phase.
Among the attractions set to draw attention are the "Dragon Coaster," LEGOLAND's first-ever Grand Racer, and the LEGO Monkie Kid's Adventure in the mythical Flower-Fruit Mountain.
In addition to the opening, other year-long activations, including the Spring Festival campaign in January, the Formula 1 Chinese Grand Prix in March and World Play Day in June, Christiansen said, present "fantastic opportunities to bring the LEGO brand to life" and engage Chinese consumers across various age groups and interests.
The company also took to the streets of Shanghai with its LEGO Formula 1 speed station, a pop-up store, on Nanjing Road, offering an interactive experience for Formula 1 fans ahead of the racing event, which is scheduled to take place from March 21 to 23 in Shanghai.
"We remain confident in our long-term development in China," Christiansen said, adding that the company will continue to invest in product innovation, retail portfolio optimization and brand building in the Chinese market.
Currently, the LEGO Group operates more than 400 stores across over 120 cities in China, including eight flagship stores and five beacon stores.
The LEGO Group is strategically concentrating its efforts on maintaining and optimizing stores in first and second-tier cities in the Chinese market, according to the CEO at the conference call of the 2024 financial results. This move reflects a shift towards urban markets, which offer higher demand, better purchasing power, and greater long-term growth potential, in contrast to its previous expansion strategy that focused on market penetrations.
The LEGO Group's latest annual results show strong financial performance globally. The toy maker posted record revenue and operating profit, outpacing the broader toy market with global market share gains.
Revenue grew by 13 percent to DKK 74.3 billion ($10.87 billion), driven by robust demand across the America, Europe and the Middle East. Consumer sales rose by 12 percent, outperforming the global toy market, which saw a 1 percent decline.
Operating profit increased by 10 percent to DKK 18.7 billion, supported by revenue growth, scale efficiencies and improved asset utilization. Net profit rose 5 percent to DKK 13.8 billion.
On the manufacturing front, the LEGO Group continues to scale-up its production capabilities, with expanded facilities in Mexico, Hungary and China, and ongoing progress in building new factories in Vietnam and the United States.
