Lego opens its first official store in Thailand at Siam Paragon
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The first certified Lego Thailand store has opened at Siam Paragon in Bangkok. The Danish building-toy manufacturer says the move is part of the brand’s strategic plan for Asian expansion. The new 170sqm Lego Thailand store has opened in a “co-sharing” partnership with DKSH (Thailand) Ltd. It offers more than 300 Lego toys, 32 of which are exclusive to certified, branded Lego outlets.
Lego Singapore GM for emerging Asia Atsushi Hasegawa said Thailand is an attractive market for Lego. “The country has an established economy, a large population and an established retail industry … We expect to see faster growth in Asia, including Thailand, and sustainable growth in Europe and America.”
Hasegawa added that Lego’s targeting of the Asian market recognises that it is home to more than half of the world’s children. While Asia still has a low base for Lego toys compared to many established markets in the West, the company is seeing an opportunity to boost its sales by five or six times in the region.
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According to Hasegawa, the company’s initial priority is not to increase the number of Lego stores, but to deliver the right brand experience to children at the right locations.
DKSH’s director of commercial development Arden Feschuk said the company expects the Lego Thailand store will achieve THB100 million (US$3.05 million) in sales in its first year. There is also a plan to expand the number of Lego-certified stores in Thailand later.
“During the first year of opening, more than 400,000 people are expected to visit the store, with Thais accounting for 60 per cent and foreigners 40 per cent. Due to the company’s one-price strategy, exclusive Lego sets will cost the same here as they do in neighbouring countries.
“Due to this, Lego fans will no longer have to go overseas to buy Lego products. Also, new collections will be launched at the same time as in the US and Europe”.
Sixty per cent of Lego’s Thailand sales are currently brought in via distribution in department stores, while more than 15 per cent is derived from specialist toy stores.
Questions & Answers
Q.What is Lego's primary focus in Thailand following this new store opening?
What is Lego's primary focus in Thailand following this new store opening?
Lego's initial priority is not to increase the number of stores, but to deliver the correct brand experience to children at the right locations. There are plans to expand the number of certified stores later.
Q.What sales target has been set for the new Lego store in its first year of operation?
What sales target has been set for the new Lego store in its first year of operation?
DKSH expects the new Lego Thailand store to achieve THB100 million, or US$3.05 million, in sales during its first year. They also anticipate more than 400,000 visitors in this period.
Q.How will the pricing of exclusive Lego sets in Thailand compare to other regions?
How will the pricing of exclusive Lego sets in Thailand compare to other regions?
Exclusive Lego sets will cost the same in Thailand as they do in neighbouring countries due to the company's one-price strategy. New collections will also launch simultaneously with the US and Europe.
Q.What percentage of visitors to the new store are expected to be from Thailand?
What percentage of visitors to the new store are expected to be from Thailand?
Thai visitors are expected to account for 60 per cent of the 400,000 projected visitors in the store's first year. The remaining 40 per cent are anticipated to be foreigners.
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