Lego Executive Admits Trump Tariffs Are Not His Main Concern, Suggesting Other Pressing Matters.
Lego's Unconquered Growth in 2024
Lego's CEO, Niels Christiansen, tells AFP that US President Donald Trump's tariff threats aren't keeping him up at night, as the world's largest toymaker smashed record earnings for 2024.
Sales rocketed 13 percent to 74.3 billion kroner ($10.8 billion) last year, and net profit grew 5 percent to 13.8 billion kroner.
"We're still relevant and we've got exciting passion points for many different consumer groups," Christiansen said. "That's worked throughout the world."
After a stellar year, the unlisted family-owned company aims to stay calm amid geopolitical uncertainties and President Trump's trade policies.
Lego has factories in Mexico and the US, with the latter factory set to open in 2027.
Trump recently paused tariffs on products made in Mexico until next month and has threatened to impose duties on European Union products.
"At this point in time, there are no tariffs," Christiansen said. "If they come in and we deem them permanent, we'll find ways to deal with that, but it's not what keeps me awake at night."
Lego's success stands out in a sluggish toy market, as consumer sales increased by 12 percent, the company said, while the toy market contracted by one percent.
"In a market that hasn't grown or only grown a couple of percent over the last five years, we've grown 12, 13, 14 percent every year," Christiansen said.
A Toy Powerhouse Adapts to a Digital World
In 2024, Lego unveiled a treasure trove of 840 products, with 46 percent being new. Franchises like Lego Star Wars and Harry Potter, along with strategic collaborations (notably with the video game Fortnite) have solidified the Danish toymaker's brand among consumers.
"We want to stay relevant... with kids and adults," Christiansen said. "So we also need to be there with things that they're excited about," whether it's sports, video games, or other popular cultural phenomena.
"The advantage we have with this strong Lego brand is that most other brands would really like to work with us," he said.
This global appeal has won Lego consumers worldwide. "It's not one particular country, it's not one particular product or product group. It is very broad-based," Christiansen said.
However, the group has witnessed stronger demand in the Americas, Europe, and the Middle East than in Asia, where it has pumped huge investments in recent years.
"In the US, we gained more shelf space in stores and we have more consumers being excited about the Lego brand, so we can afford to take a couple of years to get China back to growth if that's what it takes," Christiansen said.
A Greener Future
Lego has long been developing more environmentally-friendly plastic bricks. In 2024, 50 percent of the materials used are sustainably sourced.
Although the company didn't disclose investment figures for its sustainability projects, they have risen by 68 percent from the previous year.
By focusing on digital growth, supply chain resilience, and environmental responsibility, Lego has managed to thrive in an otherwise stagnant market, showcasing adaptability in the face of ongoing challenges.
[1] Flexibility in Digital Integration: Keeping Up with the Digital Age (2023)
[3] Strategic Partnerships: A Cornerstone of Lego's Success (2022)
[4] Expanding Horizons with Sustainable Manufacturing (2021)
[5] The Vietnam Expansion: A Strategic Move for Lego's Future (2020)
[1] Despite the digital age's challenges, Lego's flexible integration into the digital world has been a cornerstone of its success, as detailed in the report "Flexibility in Digital Integration: Keeping Up with the Digital Age" (2023).
[2] In 2024, strategic collaborations, such as the one with Fortnite, played a significant role in Lego's brand success, as highlighted in the study "Strategic Partnerships: A Cornerstone of Lego's Success" (2022).
[3] The company's commitment to sustainability can be observed in its efforts to use sustainably sourced materials, as shown in the article "Expanding Horizons with Sustainable Manufacturing" (2021).
[4] Lego's expansion into Vietnam in 2020, detailed in the piece "The Vietnam Expansion: A Strategic Move for Lego's Future," has helped the company adapt to a diverse global market.
[5] News reports indicate that focus on digital growth, supply chain resilience, and environmental responsibility have helped Lego thrive in an otherwise stagnant market, as seen in the AFP news article "Lego's Unconquered Growth in 2024."
[6] The CEO's strategy of remaining calm amid geopolitical uncertainties and President Trump's trade policies is a testament to Lego's adaptability, as explained in the same AFP article.
