Dive Brief:
- As a way to accelerate its digital transformation, the Lego Group announced it plans to triple the size of its digital team to more than 1,800 employees over the next three years, according to a press release.
- The toy company's new Copenhagen digital office will support up to 400 employees, adding to its list of existing digital offices in Billund, London and Shanghai, which will also expand.
- “Our digital transformation is one of the single largest investments the Lego Group will make in a generation," Atul Bhardwaj, chief digital and technology officer, said in a statement.
Dive Insight:
Lego’s target audience of children is more digitally connected than ever before, and this multi-year investment shows the company is keenly aware of that.
“The Lego brick will always be the heart of our business but we’re seeing great success making Lego a digitally enabled brand from new ways to play, shop and do business,” Bhardwaj said in a statement.
Opening the digital Copenhagen office follows the announcement last month that Lego is partnering with video games company Epic Games to create a child-friendly metaverse space that focuses on safety and privacy. Lego also released a new video game last month, Lego Star Wars: The Skywalker Saga, adding to its list of virtual touchpoints to its audience.
Knowing its core customer, the retailer has been uniquely positioning itself as an advocate for children’s safety in digital spaces. Lego announced in April that it was working with UNICEF to start the Responsible Innovation in Technology for Children project to help businesses and policymakers create digital worlds that prioritize children’s well-being.
The toy industry has been doing well over the past few years, with U.S. retail sales of toys generating $28.6 billion in 2021, an increase of 13% year over year, according to The NPD Group. Lego’s move to diversify its product offerings paid off in 2021, as consumer sales increased by 22% compared to 2020. Its digital retail sales specifically grew double digits. However, the retailer has still been betting big on its in-store presence, opening up 165 new stores in 2021.
