Investing.com – The toy industry is facing withering sales for the second year in a row, but Lego’s success is lifting its spirits. While many toy companies are struggling to maintain the sales growth seen during the pandemic, Danish company Lego is seeing rapid growth. The company’s revenues increased by 13% in the first half of the year, which enabled it to augment its market share.

Eric Handler, managing director of Roth MKM, noted that Lego’s success will drive the industry’s growth this year. After near bankruptcy in the early 2000s, Lego transformed its business and diversified its customer base. This strategy allowed the company to augment sales even in inflationary market conditions. The company has been recording positive annual revenue growth for six years.

Lego’s growth strategy included licensing deals targeting adults and children, expanding into digital games, partnering with studios and streaming services to deliver Lego content, and building manufacturing facilities near distribution hubs to streamline the supply chain.

The company’s successful products include the newly distinguished “passion points”, i.e. sets intended for a wide range of consumers. These include fans of franchises such as Star Wars and Harry Potter, car enthusiasts and animal lovers.

James Zahn, editor-in-chief of The Toy Book, praised Lego’s ability to buck industry trends. According to Zahn, Lego tends to thrive when other companies struggle. He also attributed Lego’s ability to stay ahead of the competition to its flexibility during periods of inflation, disruptions to the entertainment industry and potential tariff increases. He suggested that Lego appears to be two to three steps ahead of the competition.

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