LEGO is now chasing #FrustratedAdults

There's a lot of talk about how 'adulting' is hard, and sometimes it feels like the world is against us. But one thing that's always been there for us, through the ups and downs of life, is LEGO.?

The iconic toy company has been around for about 90 years, and in that time, they've perfected the art of building fun.?

LEGO is now focusing (a lot of) its energies on the Adult segment.?

Why Adults?

First - For a company that is renowned for its assortment of building blocks that entertain youngsters, the pandemic has given Lego the opportunity to satisfy growing adult demand. LEGO blocks transcend ages but the lockdowns saw more families coming together including many first timers to build something.

Second (and more importantly) -?MONEY!?

How much?

LEGO's sales jumped 27% from $6.36 Bn in 2020 to $8.06 Bn in 2021.?

LEGO attributed the increase in sales to its e-commerce operations as well as its wide variety of toys and their appeal across generations. It opened 165 new stores in 2021 to support their growth.

How much did 18+ Toys contribute?

LEGO does not disclose revenues by age group, but looking at the price of products for 18+ and its Marketing initiatives, one could infer that it’s a substantial contributor.

I looked at the 3 most expensive items on LEGO’s US website to see how products are priced for each age group. The average price of toys for 18+ category is more than double that of 13+ group.

Of course, looking at numbers in isolation makes the 18+ category seem expensive. And this excludes the fact that product offerings are different.

But the goal here is to show elasticity and ‘willingness to pay’ by Adult customers even during tough times.

How is LEGO Marketing to Adults?

Last year, it created the 'Adults Welcome' campaign?encouraging people to turn to LEGO to help them find a moment of mindfulness in their busy lives.?

It has also created a dedicated section on its website for marketing to Adults.?

AFOL Community:

Even before the pandemic reared its ugly head, LEGO was looking at engaging with Adults. In 2019 it acquired BrickLink, the biggest online community of Adult Fans of LEGO (AFOL).

The community has over 1 million members, a vibrant and active discussion forum and a successful online marketplace with thousands of sellers across the globe.

Through this, LEGO gains access to a flourishing market, gets insights and product ideas from users posting their creations.

My take:

By adding a new target segment to its marketing, LEGO has cleverly seized the opportunity to boost sales.

It has ingeniously positioned itself as a stress-reliever to help Adults feel comfortable purchasing toys for themselves.?

- - - - - -

So if you're thinking about buying some LEGOs for yourself, don't be shy. Embrace your inner child and let the fun begin!?