Sitting here on this snowy day in South Jersey (~ 3 inches, not much to write home about…), I caught this new article on Lego’s resurgence. While not directly tied to our social media theme, what I found interesting is how they took a company that was on the decline found a way to turn itself around.
In 2003, they were suffering from a decline of 26% a year over the past several years, and yet now, they have quadrupled their sales. Key attributes of their success: Innovation (60-70 new products a year), digital technology, and parental nostalgia.
Imagine, they take a kilogram (2.2 lbs to us Americans) of plastic that costs ~ $1, and sells it for $75. 99% of Lego videos on Youtube are user created content, and athletes like David Beckham talk about it. They have tie ins to the Lego Movie, with a hit song (link here), and are now having record profits. Even the movie reviews (I like the first 2 paragraphs of this one) talk about Lego’s ability to be relevant:
“This is it. This is the one. This is the film that our entire shared experience of pop culture has been building towards.”
You can’t attribute it to solely digital marketing, but they have done a great job leveraging digital technology to continue to be relevant in a digital world. Kudos Lego!