The boss of Lego has said the toymaker is developing digital games and tying up with more traditionally adult brands such as Nike and Formula One as it competes with social media to keep tweens interested in the brand.
The company, known for its colourful plastic building bricks, said it is increasing investment in online play including building its own development team. It has tripled its number of software engineers since 2022 and launched a successful tie-up with the online game Fortnite.
Niels Christiansen, the chief executive of the Danish toymaker, said the group was trying to create more “hybrid” digital and physical experiences as nine- to 12-year-olds were spending more time online.
“They tend to grow up a bit earlier and orient themselves towards social media,” he said.
Christiansen said the trend was also behind Lego’s tie-ups last year with the sports-related brands Formula One and Nike, which are expected to release the first products this year and hinted there would be more similar tie-ups on the way. “It is so important for us that we are present with exciting experiences and exactly this type of topics and passion points,” he said.
“We are seeing a shift and are trying to be right on it and even leading that shift so we stay super relevant.”
Christiansen said the new investment in digital was a “multi-year journey” and he could not give details of the games now in development. The company has already launched some Lego-branded games using external partners as well as the recent tie-up with Fortnite.
Lego said sales rose by 13% to 74.3bn Danish kroner (£8.4bn), even as the wider toy market slid back by 1%. The group’s Technic and City sets, as well as Harry Potter- and Star Wars-themed games, sold well. Operating profits rose by 10% to 18.7bn kroner despite increased investment in new factories, including in the US and Vietnam.
Christiansen said there were no plans to bring forward the opening of a new factory in Virginia despite the threat of US tariffs on goods being imported from Mexico, where the majority of Lego’s kits for North America are made.
after newsletter promotion
He said the company had experienced “a lot of volatility” in recent years including the effects of the pandemic and increased energy costs. It was unclear if US import tariffs would turn out to be long term or temporary measures so the company’s tactic was “don’t panic”, he added.
“I don’t lie awake at night because of tariffs for Mexico. I would lie awake if I didn’t feel we are sustaining relevance of the product and brand,” he said.
Lego said it was also continuing investment in more sustainable sources of plastic, and a third of ingredients for its bricks come from renewable sources. The group also expects to open more than 80 new stores this year, although it has been closing some in China amid a focus on larger cities.
