Lego Bets on China’s Children With Hundreds of New Stores

The video discusses the strategic importance of the Chinese market for Lego, highlighting its economic contribution, potential for growth, and innovation in the digital ecosystem. Lego has experienced double-digit growth in China and expects this trend to continue. Key growth drivers include open-minded families seeking high-quality products and the opportunity to increase brand awareness in lower-tier cities. Lego plans to expand its presence by opening more stores, aiming for 300 branded stores across 80 cities by next year. The video also addresses the challenge of intellectual property theft, noting positive signals from the Chinese government and courts in improving the legal environment.

What are the two main reasons Lego considers China a strategic market?

• Its large population and cultural heritage

• Economic potential and innovation capabilities

• Proximity to other Asian markets and low labor costs

• High demand for traditional toys and games

What is one of the main factors driving Lego's growth in China?

• The popularity of online gaming

• The demand for high-quality learning products

• The rise of local toy manufacturers

• The decrease in import taxes

How many branded stores does Lego plan to have by the end of next year?

• 300

• 207

• 350

• 250

What challenge does Lego face in the Chinese market that is common to many businesses?

• Strict environmental regulations

• Lack of skilled labor

• Intellectual property theft

• High transportation costs

What is Lego's outlook on the intellectual property environment in China?

• It is worsening due to lack of enforcement

• It is improving with positive signals from the government

• It remains unchanged and challenging

• It is irrelevant to their business strategy