Lego China plans major expansion
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Lego China to accelerate its expansion following double-digit revenue growth in the first half of this year.
The toy maker and retailer will open two new flagships in Beijing and Shanghai respectively within the next few months. Lego’s first mainland flagship launched at the Shanghai Disney Resort two years ago, and the company hopes to have 60 locations running before next year.
Lego’s senior VP Jacob Kragh expressed significant optimism for the company’s potential in China, stating that there was “no limit” in what Chinese parents might be prepared to pay for educational toys.
The move comes in the wake of Lego’s new video channel partnership with tech giant Tencent Holdings, which will release a game later in the year.
Lego China’s growth has already exceeded that in both Europe and the US and is accordingly the focus for Lego’s immediate expansion.
Questions & Answers
Q.What is driving Lego China's decision to expand at an accelerated rate?
What is driving Lego China's decision to expand at an accelerated rate?
The company is accelerating its expansion plans after experiencing double-digit revenue growth in the first half of this year. Its growth in China has already surpassed that in Europe and the US.
Q.How many new flagship stores does Lego plan to open soon, and where will they be located?
How many new flagship stores does Lego plan to open soon, and where will they be located?
Lego plans to open two new flagship stores within the next few months. These will be located in Beijing and Shanghai, adding to their existing mainland presence.
Q.What is Lego China's target for total store locations before next year?
What is Lego China's target for total store locations before next year?
Lego China hopes to have 60 retail locations operating across the country before next year. This is a significant increase from their current footprint.
Q.How is Lego collaborating with Tencent Holdings in China?
How is Lego collaborating with Tencent Holdings in China?
Lego has a new video channel partnership with tech giant Tencent Holdings. This collaboration will also see the release of a new game later in the year.
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