Toy manufacturer Lego has undergone a tremendous journey since its founding. The company’s innovative business model has seen its brand value dwarf competitors in the toy industry.
Data presented by Buy Shares indicates that Lego is the most valuable toy company with a brand value of $6.5 billion as of December 2020. Cumulatively, the brand value of the top ten toy companies stands at $11.8 billion with Lego accounting for 55.5%
From the data, Bandai Namco has the second-highest brand value at $1.9 billion, which is at least three times less than Lego. Hot Wheels ranks in the tenth spot with a brand value of $272 million.
Lego most popular brand on YouTube
Lego’s popularity is also exhibited on Youtube. The Buy Shares research overviewed the most popular brands on YouTube, where Lego emerged top with about 10.04 billion views.
Vat 19 ranks in the second spot with 5.84 billion views which is at least half compared to Lego. On the other hand, MundoBitaVEVO ranks in the tenth spot with 2.52 billion.
Lego’s video content on its YouTube channel has played a vital role in the company’s brand value. The channel is packed with different content of original episodes of LEGO Star Wars and Ninjago. Additionally, it has a collection of designer videos and sub-channels like LEGO Gaming and LEGO Fan Tube for the adolescent fans of LEGO.
How Lego managed to become valuable toy brand
With the high brand value, Lego now ranks among the most innovative and successful companies in the world. The company has deployed several strategies over the years since being on the verge of bankruptcy in 2003.
The company has been able to adapt to the changing environment. Notably, with the digitization of many aspects, Lego made a significant leap into the toys-to-life market. With its approach, Lego incorporated video games where physical action figures interact with those on-screen. The company has managed to remain relevant, while still adhering to its true self and purpose. The brand understood changing times and found a way of adapting to remain true to its brand identity.
Like most valuable brands, Lego has managed to understand its target audience and develop products that customers want. From the threat of bankruptcy, Lego focused on researching beforehand to find out what their audience wanted. Notably, Lego carried out one of the first and most successful crowd-sourcing operations. The company asked fans and enthusiasts to suggest and vote on ideas for new models. This approach has seen Lego get back on track to become the most valuable toy company.
Lego’s brand value recorded significant gains in 2020 as more adults joined children in playing. The company witnessed a surge in revenues due to more families playing together and more adults playing its harder-to-build sets during the coronavirus pandemic. Notably, most adults were interested in jigsaws, and board games as families spend more time together. With the onslaught of the pandemic, most brands have been impacted negatively. However, the pandemic has not dampened Lego’s forward momentum.
It is worth mentioning that Lego’s ability to cater to customers of all ages has seen the company beat rivals. Lego doesn’t define kids as children. Anyone with a love for blocks and creativity is a Lego potential customer. Lego has shifted to become a transnational, cultural toy company, something that has impacted its brand value positively.
With a diversified supply chain, a product range that caters to a broad spectrum of interests, and a global market of all ages, Lego is positioned to keep succeeding.Read next
AI Startups Raised $9.9B in H2 2020, a 15% Jump YoY
Toy manufacturer Lego has undergone a tremendous journey since its founding. The company’s innovative business model has seen its brand value dwarf competitors in the...