Lego China Flagship Heralds with a renewed focus on the East
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Danish toy brand Lego’s bounce back after a tough financial year has seen new enthusiasm from the brand for expansion into China. The new energy has seen the retailer open its first Lego China flagship in Beijing last weekend.
A drop in demand for its products during the 2017 financial year – the first since 2004 – saw the brand take a sharp conservative turn last year in order to stabilize the business. Meanwhile, double-digit growth in China brought revenue up 4 per cent to US$5.5 billion with profits of $1.2 billion, accompanied by a degree of sales recovery in the US and western Europe.
“We are especially encouraged by our progress given the challenges facing the toy industry and the departure of specialist retailers such as Toys R Us that went under last year,” said Lego’s CEO Niels B Christiansen. “These shifts gave us the opportunity to strengthen our partnerships with retailers and find new ways to connect with shoppers and consumers across digital and physical channels.”
Buoyed by the encouraging results, and on the heels of the Lego China flagship opening, the company will launch 80 new physical outlets in 18 Chinese cities this year.
Questions & Answers
Q.Why has Lego chosen to focus on expansion in China now?
Why has Lego chosen to focus on expansion in China now?
Lego's recent financial results showed double-digit growth in China, helping to boost overall revenue and profits. This positive performance has encouraged the brand to expand further in the region.
Q.When did Lego open its first flagship store in China?
When did Lego open its first flagship store in China?
Lego opened its first flagship store in China last weekend, with the new outlet located in Beijing. This opening coincides with a renewed focus on expansion in the East.
Q.What was Lego's financial performance like in the last reported year?
What was Lego's financial performance like in the last reported year?
Lego's revenue rose by 4 per cent to US$5.5 billion, with profits reaching $1.2 billion. This followed a tough financial year in 2017, which was the first drop in demand since 2004.
Q.How many new physical stores does Lego plan to open in China this year?
How many new physical stores does Lego plan to open in China this year?
Lego plans to launch 80 new physical outlets across 18 Chinese cities this year. This significant expansion follows the opening of its new flagship store in Beijing.
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