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In what was a challenging year for the global toy industry, Lego managed to maintain its upward trajectory, with sales increasing by 2% in 2023.

Despite facing headwinds such as declining consumer spending and economic uncertainties, the Danish toymaker demonstrated resilience, outperforming the market and significantly growing its market share.

Lego Reports Growth in 2023 Amid Industry Slowdown

According to data from Circana, while the overall toy industry saw a 7% decline in sales, Lego's revenue reached an impressive 65.9 billion Danish krone, equivalent to approximately $9.65 billion.

This growth comes on the heels of the company's remarkable performance during the pandemic, where it experienced sales jumps of 27% in 2021 and 17% in 2022.

In a statement, Lego CEO Niels Christiansen attributed Lego's success to its ability to adapt to changing consumer preferences and market dynamics. Christiansen highlighted that the company not only weathered the storm but surpassed expectations, maintaining its track record of outgrowing the market.

Lego's China Expansion

While Lego's performance was commendable overall, the Chinese market presented a notable challenge, with revenue declining in the region. Christiansen acknowledged the cautious spending behavior among Chinese consumers but remained optimistic about the company's long-term prospects.

He emphasized Lego's commitment to expanding its footprint in China, strategically focusing on brick-and-mortar retail presence. Last year, 147 new Lego stores were opened, 81 of which were in China. Christiansen expects the number will drop to roughly 40 additional openings by 2024.

Lego Explores More Digital Ventures

In addition to its physical stores, Lego has been ramping up its digital initiatives to stay relevant in an increasingly competitive landscape.

Partnering with Epic Games to launch Lego Fortnite, the company aims to engage children and families in immersive digital experiences while maintaining its core focus on physical play.

With a 27% increase in its team of digital experts in 2023, Lego is investing heavily in enhancing online experiences for its customers.

Despite macroeconomic pressures, Lego continued innovating and diversifying its product portfolio. With 780 products in its lineup, including popular themes like Lego Icons, Lego Technic, Lego City, Lego Harry Potter, and Lego Star Wars, the company caters to builders of all ages and interests.