In ten years, Lego has recovered from the brink of bankruptcy to a blockbuster movie and strong sales. Lego Designer Mark Stafford recently took to Reddit to offer some insight on what went wrong in the first place and how the Danish toy company turned it around. The troubles, he said, involved bad management and expensive and unpopular new products. The LEGO company at that stage had no idea how much it cost to manufacture the majority of their bricks, they had no idea how much certain sets made. The most shocking finding was about sets that included the LEGO micro-motor and fiber-optic kits — in both cases it cost LEGO more to source these parts then the whole set was being sold for — everyone of these sets was a massive loss leader and no one actually knew. This was combined with a decision to ‘retire’ a large number of the LEGO Designers who had created the sets from the late 70′s through the 80′s and into the 90′s and replace them with 30 ‘innovators’ who were the top graduates from the best design colleges around Europe.
Unfortunately, though great designers they knew little specifically about toy design and less about LEGO building. The number of parts climbed rapidly from 6000 to over 12,000 causing a nightmare of logistics and storage and a huge amount of infrastructure expansion for no gain in sales. Products like Znap, Primo, Scala and worst; Galidor all came out of this period. Let’s take a closer look at those new products that almost led to disaster. Lego Technic Fiber Optic Multi Set (1996) The “fiber optics” in this this Technic kit are actually clear plastic tubes that connect to a battery-operated LED-light pack. These specialized parts cost more to produce than the entire set was being sold for. The Znap line was an obvious reaction to K’Nex, an American construction toy company that was founded in 1993. Like those of K’Nex, Znap pieces were more elaborate than traditional Lego bricks, and could allow for more architectural creations, like bridges. Ultimately, Znap proved to be an inferior competitor and failed to catch on.
To make matters worse, Lego even used those highly unprofitable Technic motors in some of the sets. Lego’s Duplo line is intended for children 1-5 years old and has been around since 1975 (barring a couple brief absences). The Primo offshoot was intended for babies too young to even play with regular Duplo bricks. And unlike Duplo pieces, they were not compatible with regular Lego pieces. Primo was succeeded by Lego Baby, which was phased out in 2005. The niche market was simply not profitable for the company. For some reason, Lego decided to revive an obscure line from ’79 targeted at young girls. The one thing that kept the Scala doll line remotely attached to the Lego brand was the use of some bricks in the play sets, and from ’97-’98, the brick studs were in flower-shapes incompatible with other Lego sets. Stafford considers the Galidor line to be Lego’s most heinous offense. Based on a kid’s show of the same name, the line was basically an action figure series with awkward features like interchangeable arms for characters.
Each set in the line featured specialized pieces, which were expensive to produce and in practically no way resembled a Lego product. Jorgen Vig Knudstorp, a former McKinsey consultant, came in as CEO in 2004 and rescued the company. He tossed series that were wasting money, cut the number of Lego pieces by more than half, and began hiring talented designers who were also passionate fans of the brand (like Stafford), rather than just smart people with impressive degrees. The company continued to grow the success of the massively popular Bionicle line, as well as licensed series spearheaded by “Star Wars” sets. Now, designers like Stafford produce successful kits like those in “Legends of Chima,” which combine original storytelling with the classic Lego “feel.” For more information on every Lego series — both the good and bad — check out Brickipedia.Danish toy manufacturer Lego Group has taken the title of the biggest toymaker in the world in terms of revenue and profit.
The popular Lego movie helped propel sales 11% higher in the first six months of the year. "We are thrilled by the reception of the Lego Movie products," said Lego Group CFO John Goodwin. Sales across Europe, the Americas and Asia increased by double digits compared to the same period in the previous year. The family-owned business surpassed top competitor, Mattel (MAT), which is struggling with slumping global sales and slower demand for Barbie dolls and Fisher-Price toys. Lego also trounced Hasbro (HAS) sales -- reporting revenue that was more than 30% higher than the board-game giant. The Lego Movie, which was released in February by CNNMoney's parent company, Time Warner (TWX), made $69 million in its opening weekend and has grossed nearly $260 million so far, according to Box Office Mojo. Popular Lego sets have been snapped up like hot cakes over the past few months, including a highly-celebrated new set featuring female scientists. The new toy launched in early August and sold out on Lego's website over the course of a weekend.
Now Lego executives are hoping the business momentum will last into the all-important second half of the year. "The majority of Lego sales ... [happen] in a short time-span of a few weeks leading up to the holiday season," said Goodwin. "It remains to be seen how the line will continue to develop behind the highly anticipated launch of the Lego Movie on DVD in the second half of 2014." Lego toys have become so popular they've even attracted the attention of big-time criminals. This summer, police departments across the U.S. reported breaking up various Lego theft schemes involving over $300,000 in toys. Lego Group, which has roughly 12,000 employees, is still owned by the Kirk Kristiansen family that founded it in 1932.Home > Awesomeness > By Joe Warner on November 14, 2014 Back in the 1990s, LEGO was the struggling toy brick company that adults looked back on nostalgically, but couldn’t make a buck. Until 1999, when LEGO started to license the brick out of it.
Then things started rocking, and 15 years later, LEGO has produced a dizzying array of licensed sets from a number of A-list pop culture properties including Star Wars (one of the first), Harry Potter, Batman, The Lord of the Rings, The Hobbit, The Simpsons and even Back to the Future. The list goes on. This year saw the introduction of The LEGO Movie licensed sets, which was kind of like, whoa, dude, it’s like turning in on itself! But LEGO is not all about the licensed toys. There’s still the classic and long-running LEGO City, LEGO Space, LEGO Castle and LEGO Technic themes, as well as more recent popular themes like LEGO Architecture, LEGO Creator, LEGO Mindstorms, LEGO Ninjago, LEGO Legends of Chima and the girl-friendly LEGO Friends. LEGO Pirates are also coming back in 2015 after a 6-year hiatus. There’s even LEGO Ideas (formerly known as CUUSOO) which is a program that produces fan-submitted ideas through a Kickstarter-like process. That’s how the LEGO Minecraft and Back to the Future sets were born.
We are truly now in the Golden Age of LEGO, and everything is awesome! Let’s take a look at 20 incredibly awesome official LEGO sets from the past 10 years. (Hey, we had to limit this somehow. Otherwise, this list would be huge!) Special thanks to Brickset for their awesome LEGO site and passionate users! Taken from this year’s big hit The LEGO Movie, Metal Beard’s Sea Cow is an over-the-top mishmash numbering over 2,700 pieces. It’s the largest set from the series and is already considered one of the best ships ever produced by LEGO. It also includes the all-important double-decker couch. Release year: 2014 | Price: $250 – Amazon Released in 2011, this Ultimate Collector Series Star Wars set contains over 3,000 pieces and is no longer in production. eBay is your only hope to find it now. Release year: 2011 | Price: varies (not in production) – eBay Born out of the LEGO CUUSOO site (now known as LEGO Ideas), the iconic BTTF DeLorean Time Machine is a fan-submitted design that became an official retail set.
Numbering 401 pieces, the set features the famous gull-wing doors, the flux capacitor, Marty McFly and his skateboard and of course Doc Brown. This is a great time to be a LEGO fan! Release year: 2013 | Price: $35 – Amazon A treat for movie buffs, this 2,196-piece Expert set is inspired by movie palaces of yesteryear. It’s part of the Modular Buildings series where you can piece together different sets to form a city block.Price: $150 – Amazon Indiana Jones and LEGOs: awesome! This fun 554-piece set recreates the iconic boulder scene from Raiders of the Lost Ark and contains a minifigure for Jock, Indy’s pilot as well as one for the unfortunate Satipo who famously implores Indy to “throw me the idol, I throw you the whip!” Yeah, that didn’t end well. Release year: 2007 | Price: varies (not in production) – eBay Since its release in late 2012 to coincide with the release of The Hobbit, the 652-piece Unexpected Gathering set has won praise from LEGO and Tolkien fans alike.
It’s as detailed as the movie scene it recreates is long. Which is to say, it’s very detailed. Release year: 2012 | Price: $63 – Amazon Containing nearly 3,000 pieces and priced over $300, the Sydney Opera Set is a faithful rendering of the landmark structure, aimed squarely at adult fans of LEGOs, aka AFOLs. Standing nearly a foot tall, the set doesn’t have minifigures and the instruction booklet contains text and illustrations about the history and construction of the opera house.Price: $320 – Amazon Just a year after it was introduced, the Ewok Village, with its near 2,000-piece count, is already in the firmament of greatest Star Wars LEGO sets ever made. Say what you will about the cinematic worthiness of Ewoks, but they make very entertaining toys. Price: $250 – Amazon With no specific instructions and over 1,200 white and transparent pieces, the Architecture Studio is aimed at the builder who likes to use their own inspiration to create memorable LEGO sets.
You get 73 different types of building bricks and a thick book that teaches you about architectural concepts. This is a long way from Star Wars LEGOs!Price: $160 – Walmart Containing 865 pieces and 8 minifigures, the classic Black Seas Barracuda set is so good that it got re-released in 2002, 13 years after it was first introduced, and thus makes it eligible to appear on our list! Release year: 2002 | Price: varies (not in production) – Amazon Marketplace Another Star Wars set, another Ultimate Collector Series toy, 2,500 pieces of pure awesome. Release year: 2010 | It has just recently gone out of production, but the 2064-piece Haunted House is destined to become a sought-after commodity among LEGO builders. It’s been praised for the attention to detail, creativity, unique minifigures and the way it opens like a dollhouse. Consisting of over 1,000 pieces, the Medieval Market Village is a tavern, blacksmith’s workshop and open market with various animal figures, including two cows and a rat.
For Castle fans, this is considered the best of the modern sets. Release year: 2009 | Price: varies (not in production) – Amazon Marketplace This set boasts a mind-blowing 5,195 pieces, giving it the second-highest piece count after the Taj Mahal (#3 on our list). It’s also the largest sized model (33″ x 22″ x 8.3″) and most expensive set ($500 retail) ever made commercially available by LEGO. Release year: 2007 | As featured last year right here on The Checkout, the Tower of Orthanc is a ridiculously awesome set featuring six floors containing over 2,300 pieces and Treebeard the Ent among many other delights. It’s an amazing-looking LEGO set.Price: $250 – Amazon With the highest piece count of any LEGO set ever at a jaw-dropping 5,922 bricks in all, the Taj Mahal had to be on this list. The amazingly detailed and realistic set is a challenge for even the most seasoned builders. Even if you’re not a fan of LEGOs or even toys, this is one you just have to see for yourself.