Opening a Lego set has long been an experience filled with a mix of excitement and the daunting task of sorting through a myriad of bricks and intricate details. For 92 years, this process has captivated the imaginations of children, driving them to build castles, rocket ships, city skylines, and more.
Very few companies have managed to reach the level of success that Lego has achieved. Its products have appealed to a wide range of demographics, from adult hobbyists reconnecting with their childhood favorites to new generations of young builders.
Since its origins in 1932, when it began as a carpenter’s passion project, Lego has grown into a staple of childhood. Almost any topic imaginable—whether it’s architecture, anime, racing, or jazz music—has been represented within its offerings.
Despite the rise of electronic gadgets, Lego remained a formidable presence in the toy industry. The Danish family-owned company experienced record-breaking results in 2024, reporting a remarkable 12% increase in sales even as the overall toy market declined by 1%.
Fortune magazine explored the inner workings of Lego’s product development and the company’s methods for maintaining the relevance of its iconic brand. A long-standing theme, space, exemplifies Lego’s unique approach, dating back to the 1970s. The theme was designed to symbolize the mysteries of the future, much like castles represent the past. Space has consistently captured children’s imaginations, offering endless opportunities for exploration.
Julia Goldin, Lego’s Chief Product and Marketing Officer, emphasized the importance of Lego-building as a passion and its direct appeal to audiences, highlighting the company’s understanding of their customers’ needs. According to Goldin, Lego’s approach involves a deep comprehension not only of what interests children but also of the dynamics that define an engaging experience.
Frédérique Tutt, a global toy industry advisor at Circana, pointed out that the quality of Lego bricks enables them to be passed down through generations. Unlike many mindless games, Lego toys are perceived as beneficial for children, potentially enhancing engineering skills and creativity.
The company’s process of developing new ideas includes hosting an annual “boost week,” a brainstorming event where designers pursue new concepts free from their usual routines. Daniel Meehan, a creative lead with Lego, explained that these sessions aim to uncover potential new sets.
Lego also thoroughly tests ideas with children worldwide, gaining insights from this young audience. Meehan recounted an instance where a child playing with a space-themed DIY test vehicle requested more aliens—prompting the company to include more in future designs.
Pricing and design are also thoughtfully addressed, with sets offered at various price points to remain accessible to a wide audience. This approach extends to adult collectors, making even high-priced sets with thousands of pieces, such as the Millennium Falcon, part of the Lego experience.
The company’s founder, Ole Kirk Kristiansen, ingrained a commitment to detail and quality that has persisted, encompassing not only space creations but the business strategy as well. Meehan noted that the theme of space targets different audience types, from young storytellers to enthusiasts and those drawn to all things related to space.
Frédérique Tutt observed that another strength of Lego is its ability to grow with its audiences, appealing to young children alongside teenagers and adults with complex pieces. This granular approach influences how Lego prices, designs, and markets its products, ensuring that there is something for everyone.
Julia Goldin affirmed that these intricate details within Lego sets add significant excitement, making Lego much more than just a toy and providing an immersive experience.
This article was initially published on Fortune.com on August 25, 2024.
