LEGO sheds premium tag to become a mass player in India
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Danish toy brand Lego is shedding its premium strategy to position itself as a mass-market brand in India.
Following an increased focus on Asia during the past two years, Lego is seeking to expand its consumer base in India by bringing products in the price band of INR500 to 5000 (US$7.30 to $73) to the emerging market. It could also bring the Lego Certified Store format into the country by 2022.
Lego’s senior regional sales manager for South Asia Amit Kararia said: “In India, Lego was perceived to be a premium brand. But since the past two years, we have been working on going mass and expanding our consumer base.
“E-commerce has also emerged as an important sales channel for us with nearly 25 per cent of our sales coming from this channel. It also helps us reach out to consumers where we are not present through physical stores,” Kararia added.
With the expansion of toy-specialist stores and department stores in India, the company is hoping to expand its presence in major and second tier cities, expanding from 40 to 60 cities in the foreseeable future. It is also hoping to see double-digit growth in the market, which has the largest number of children aged under 13 years.
Questions & Answers
Q.Why is Lego changing its market strategy in India?
Why is Lego changing its market strategy in India?
Lego previously had a premium brand perception in India. For the past two years, the company has focused on becoming a mass-market brand to expand its consumer base in the emerging market, aligning with a broader focus on Asia.
Q.What price range will Lego's new product offerings target in India?
What price range will Lego's new product offerings target in India?
Lego plans to introduce products priced between INR500 and INR5000 in India. This strategy aims to make their toys more accessible and appeal to a wider range of consumers in the emerging market.
Q.How significant is e-commerce to Lego's sales in India?
How significant is e-commerce to Lego's sales in India?
E-commerce has become a vital sales channel for Lego in India, accounting for nearly 25% of their total sales. This platform is crucial for reaching consumers in areas without physical store presence.
Q.What are Lego's expansion plans for physical presence in India?
What are Lego's expansion plans for physical presence in India?
Lego intends to expand its presence from 40 to 60 major and second-tier cities in the foreseeable future. This expansion will utilise toy-specialist and department stores, and potentially introduce Lego Certified Stores by 2022.