What can retailers learn from LEGO

WHAT CAN RETAILERS LEARN FROM LEGO'S SUCCESS?

While the COVID-19 pandemic is forcing some retailers around the world to close, LEGO opened 134 new stores – of which 91 were in China last year. The company plans to open a further 120 new shops in 2021, including 80 in China alone, expanding its total global store count to almost 800 in 2021.

This is part of LEGO’s business strategy towards – what it calls an ‘omnichannel network’ – operating in tandem with LEGO.com, whose online visits doubled over the last year. This ties with Mintel’s COVID-19 tracker showing that nearly half of British consumers are now doing more shopping online – a double digit increase since mid-April 2020. LEGO’s sales in 2020 grew by a substantial 13%, while operating profit rose by 19% worldwide. Its retail strategy is definitely working. 2020, which uniquely blends physical bricks with online games, has been one of LEGO’s most successful theme launches. The product line featured an interactive LEGO Mario figure that collects coins in real life game levels created with LEGO bricks. The figure has LCD screens in its eyes, mouth and belly to display a wide range of instant reactions to movement, colour and action bricks.

Collaborating with Universal Music Group, the innovative company continues with this strategy in 2021 with the LEGO Vidiyo release – which taps into kids’ creativity through music and play.

Through LEGO Vidiyo, children can direct, produce, star in, and share their own music videos, using chart-topping tracks from Universal Music’s extensive variety of global artists. Its playful music video maker experience combines physical and digital play as special effect ‘BeatBits’ and music inspired minifigures integrate and come to life through AR in a vibrant new app. Mintel Trend Extend My

Lego’s Super Mario Set

Merging online and offline

In terms of new product launches, LEGO Super Mario set in

By Utku Tansel LLB, MBA

https://www.linkedin.com/in/ utku-tansel-llb-mba-98231636/

Lego’s Vidiyo

Brand investigates how brands are expanding into new categories and demographics to find new business as well as intrigue consumers. Brands are advised to assess the opportunity to use their company’s established image, visibility, and strong brand following to launch new product lines – which LEGO has been utilising very successfully in recent years. They are encouraged to explore new categories and price points that may cater to an extended clientele while still aligning with the brand’s identity.

Brick by brick, LEGO, which dominates the construction category globally, has been expanding its presence in toys targeting beyond its core business. In 2020, the company entered the arts & crafts category with the introduction of LEGO DOTS – a concept which offers kids a creative canvas for self-expression. Based on multiple shapes and colourful tiles, the line featured bracelets and items for home décor.

Targeting stressed-out adults

Aiming at adults, LEGO also released its 2nd 2D tile building theme, LEGO Arts, in 2020 featuring Andy Warhol’s Marilyn Monroe, The Beatles, Marvel Studios Iron Man, and Star Wars The Sith. Mintel Traditional Toys and Games, US, May 2020 report highlights that consumers need toys and games to bring more than just fun and brands can connect with adults by appealing to their need for wellness.

With products for adults that can tout stress relief and relaxation, each LEGO Art design is accompanied by a bespoke soundtrack. These soundtracks dive deep into the inspiration behind each wall art set helping adults unwind and fully immerse themselves in the building experience.

Our consumer research (US, March 2020) confirms that there is a large market for toys and games for adults, since half of consumers who have purchased toys and games in the previous 12 months have done so for an adult.

Providing a unique retail theatre experience

LEGO stores are a great example of retail theatre with plenty of life sized models and figurines as well as play stations. Their outlets are seen as a destination in their own right by consumers. Mintel Trend Experience Is All highlights that most consumers still put a premium on the advantages of shopping in-store, which includes the ability to try products in person and to be helped by customer service associates. This trend is not about countering online sales, but rather turning shops into enjoyable experiences that promote purchases—either in-store or remotely. Retailers are reminded that shops are windows and adverts as much as places to purchase stock and they need to extend the time people spend there as well as the frequency of their visits.

What next?

Post-pandemic, LEGO should be able to continue to build on its success. As I also investigated in my “Hamleys: an iconic UK Toy Retailer at Crossroads” Opinion piece in Total Licensing Spring edition 2021 and “Retail and E-commerce: The Impact of COVID-19 in the UK”* previously, for consumers, a shopping day out will continue to be a leisure activity and it will increasingly be a choice rather than a necessity. Overall, the retail landscape will be leaner, the battle for consumer attention will be fierce and when the economy recovers, consumers will remain value conscious. In city centres, particularly, newer and better retailers are coming in which will undoubtedly help with the footfall into the high street, moving forward. There is a huge opportunity and good retailers will continue to do well. LEGO is in a very good position to capitalise on these.

*https://www.totallicensing.com/retailand-e-commerce-the-impact-of-covid19-in-the-uk/

SCHOLASTIC SIGN SPY NINJAS

Spy Ninjas, the YouTube “story-driven media franchise,” has signed a publishing deal with Scholastic for the U.S. and Canada. Surge Licensing, the exclusive licensing agent appointed to grow the Spy Ninjas brand, concluded the three-year agreement. In each episode of the YouTube serial drama—which attracts more than 400 million monthly views and has over 38 million subscribers—Chad Wild Clay, Vy Qwaint, and their Spy Ninjas team, set out to save the world from the evil hacking group, Project Zorgo, through detective work and martial arts. Every episode attracts an outstanding 1M+ views within the first hour of going live, and the series boasts remarkable engagement and linear TV broadcast habits not seen anywhere else online. Scholastic will be launching the Spy Ninjas publishing program with an official guidebook for the brand, followed by a number of graphic novels and activity books. Each book is interwoven with the storytelling on YouTube and fans will be able to decode messages, solve clues and find hints to help the Spy Ninjas team complete their missions. The first books are anticipated to start rolling out in fall 2021 ahead of the holiday gift-giving season. “Scholastic is the largest publisher and distributor of children’s books in the world, helping young readers to explore their imaginations and become lifelong lovers of books, and we couldn’t be more excited that they are our North American partner for the brand,” commented Surge’s VP, Elan Freedman. “The publishing line will provide myriad ways for the series’ huge fanbase to further connect with Chad and Vy and their Spy Ninjas team as they demonstrate loyalty, discipline, respect and courage on their mission to save the world!” The publishing agreement comes on the heels of the launch of the Roblox game, Spy Ninjas vs. Project Zorgo Hackers in Roblox, an organic extension of the Spy Ninjas world, which launched on July 3rd. The game launched to over 40,000 concurrent players and over 1 million game plays on its first day. The game launch was supported by the Spy Ninjas YouTube channels, including their gaming-focused channel that routinely airs #1 trending gaming videos on the YouTube platform. Through YouTube, Chad and Vy prompt gamers to join them on Roblox to help them solve riddles, spot clues, do detective work, as well as battle Project Zorgo. Playmates Toys launched the master toy program at Walmart.com, Target.com and Amazon.com. Brick and mortar retailers are starting to sell the line this year, with Target already carrying the line. The first wave of the toy rollout features spy gadgets that include secret electronic spy ninja gear, decoders, ninja weapons, a new Project Zorgo™ mask and spy activity kits from the series. Event Merchandising launched the official Spy Ninjas eCommerce global store in December, Spyninjasstore.com.

The digital edition of Total Licensing will be at Licensing Expo Virtual and the print edition will be at MIPCOM/MIP Junior and Milano Licensing Day.

Outfit7 and its North American global licensing partner, Epic Story Media, have announced new deals for the award-winning family entertainment brand, Talking Tom & Friends. Fans can look forward to a new branded Talking Tom interactive product, as well as a range of consumer products at retailers across the U.S. Epic and Outfit7 are also developing a brand-new 3D CGI animated series for global distribution. The Talking Tom Heroes: Suddenly Super series is a new iteration of Outfit7’s successful Talking Tom Heroes brand. The series will see the popular characters transform into superheroes who must unlock their superpower potential to save the day – all while keeping their day jobs! “Talking Tom Heroes: Suddenly Super is an exciting new development for Outfit7’s groundbreaking entertainment brand, which already has 79 billion global views of its video content,” said Ken Faier, El Presidente and Founder of Epic Story Media. “We’re thrilled to be working with Outfit7 and take a brand with such incredible global reach to new heights.” The series is just one of three deals set to deliver more Talking Tom & Friends to its fans worldwide. Epic Story Media and Outfit7 have partnered with Lukis Global Corp, a multi-industry conglomerate and private label manufacturer, to launch a range of new Talking Tom & Friends products at U.S. retailers in the food, apparel, jewellery, and health & beauty categories. This fall will see the launch of the GameBud Talking Tom. The Talking Tom GameBud, which will be released for presale in Q4 this year, is the first product to launch from direct-to-fan premium play company, HUGE! Play. Kevin Mowrer and Adrian Roche, Co-CEOs of HUGE! Play, said: “We’re incredibly excited to introduce the world to GameBud, an innovative 3D interactive character that will liveconnect to your favorite Talking Tom games, while also acting as your very own in-home streamer!”