Lego Group will triple the size of its digital team

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Diving Brief:

  • To accelerate its digital transformation, The Lego Group has announced plans to triple the size of its digital team to over 1,800 employees over the next three years, according to a press release.
  • The toy company’s new digital office in Copenhagen will accommodate up to 400 employees, adding to its list of existing digital offices in Billund, London and Shanghai, which will also expand.
  • “Our digital transformation is one of the most significant investments the Lego Group will make in a generation,” Atoul Bhardwajchief digital and technology officer, said in a statement.

Overview of the dive:

The target audience of Lego kids are more digitally connected than ever before, and this multi-year investment shows the company is acutely aware of this.

“The Lego brick will always be at the heart of our business, but we are seeing great success in making Lego a digital brand from new ways to play, buy and do business,” Bhardwaj said in a statement.

The opening of the Copenhagen digital office follows the announcement last month that Lego is partnering with video game company Epic Games to create a kid-friendly metaverse space which emphasizes security and privacy. Lego also released a new video game last month, Lego Star Wars: The Skywalker Sagaadding to his list of virtual touchpoints with his audience.

Knowing its core customer base, the retailer has uniquely positioned itself as an advocate for child safety in digital spaces. Lego announced in April that it was working with UNICEF to start responsible innovation in technology for children project to help businesses and policy makers create digital worlds that put the well-being of children first.

The toy industry has been doing well for a few years, with U.S. Toy Retail Sales Generating $28.6 Billion in 2021, a 13% year-over-year increase, according to The NPD Group. Lego’s decision to diversify its product offerings paid off in 2021, as consumer sales increased by 22% compared to 2020. Its digital retail sales specifically grew by double digits. However, the retailer has always bet big on its in-store presence, opening of 165 new stores in 2021.

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