Lego, the beloved building block brand, has had its ups and downs. The story of its resurgence is akin to rebuilding a tower that had toppled over.
In the early 2000s, Lego found itself on the brink of bankruptcy. Diversification into various product lines, such as theme parks and clothing, had led them astray from their core – the simple, colorful bricks that had sparked creativity in children for generations.
In 2004, Jørgen Vig Knudstorp, a former McKinsey consultant, was CEO. He quickly recognized that Lego needed to return to its roots. “Our ultimate purpose is to inspire and develop children to think creatively, reason systematically, and release their potential to shape their own future,” he said.
Knudstorp set about reconstructing Lego brick by brick. He divested the non-core assets, simplified the product range, and focused on what made Lego… well, Lego. But he also knew that they needed something extra to rebuild the brand to its former glory.
That’s when the idea of licensing partnerships came into play. Lego joined forces with franchises that already had a dedicated fanbase. Think “Harry Potter”, “Star Wars”, and “Batman”. The result? Themed Lego sets that flew off the shelves.
Moreover, Lego embraced the digital era gracefully. The launch of ‘Lego Ideas’ allowed fans to submit their own design ideas, fostering a sense of community and engagement.
Yet, perhaps the most unexpected blockbuster was “The Lego Movie” in 2014. It wasn’t just a film; it was a celebration of the very ethos of Lego – the joy of building and creating.
“Everything is awesome!” became not just a catchy tune from the movie but a mantra that encapsulated Lego’s triumphant comeback.
In a way, Lego didn’t just rebuild; it reinvented itself while staying true to its essence. Like a child turning a pile of bricks into a majestic castle, the LEGO Group reconstructed itself, just like the imaginative creations it helps build every day
