The Lego Group - Wikipedia

3/3/2019 The Lego Group - Wikipedia
Coordinates: 55.7345323°N 9.1244228°E
The Lego Group
Lego System A/S, doing business as The Lego Group (stylised as The
LEGO Group), is a Danish toy production company based in Billund.[5] It is
Lego System A/S
best known for the manufacture of Lego-brand toys, consisting mostly of
interlocking plastic bricks. The Lego Group has also built several amusement
parks around the world, each known as Legoland, and operates numerous retail
stores.
The company was founded on 10 August 1932 by Ole Kirk Christiansen.[6] The
word "lego" is derived from the Danish words "leg godt", meaning "play well".
In the first half of 2015, The Lego Group became the world's largest toy
company by revenue, with sales amounting to US$2.1 billion, surpassing
Mattel, which had US$1.9 billion in sales.[7][8] On 11 August 2017, Lego
announced that Niels B. Christiansen would become the new CEO, effective 1
October of the same year. Trading name The Lego Group
Type Private
Industry Toys
Contents Founded 10 August 1932
History Founder Ole Kirk

Christiansen
Logos
Headquarters Billund, Denmark
Trademark and patents
Toy production Number of 42 offices (2017)
locations
Environmental issues
Key people Jørgen Vig
Gender equality
Knudstorp
Legoland
(executive
Retail stores chairman)[1]
Europe
Niels B.
North America
Christiansen
India
(CEO)[2]
Lego Interactive
Products Lego
Financial results
References Revenue 37.9 billion
kr.[3] (2016)
External links
Operating 12.4 billion
income kr.[3] (2016)
History Net income 9.4 billion

kr.[3] (2016)
The history of Lego spans nearly 100 years, beginning with the creation of
Owners Kirkbi A/S (75%)
small wooden playthings during the early 20th century. Manufacturing of
The Lego
plastic Lego bricks began in Denmark in 1947, but since has grown to include
Foundation (25%)
Number of
https://en.wikipedia.org/wiki/The_Lego_Group 1/10
factories throughout the world. In 1961, Lego was managed by Samsonite until employees 19,000+[4] (2017)
1972 in the United States and 1986 in Canada. Website lego.com (http://le
go.com)
Logos
Below are historical images of the Lego logo throughout the company's existence.[9]
1934–1936 1936–1946 1946–1948
1948–1950 1950–1953 1953–1954
1954–1959 1959–1964 1964–1972
1972–1998 1998–present
Trademark and patents
Since the expiration of the last standing Lego patent in 1989, a number of companies have produced interlocking bricks
that are similar to Lego bricks. The toy company Tyco Toys produced such bricks for a time; other competitors include
Mega Bloks and Best-Lock. These competitor products are typically compatible with Lego bricks, and are often marketed
at a lower cost than Lego sets.
One such competitor is Coko, manufactured by Chinese company Tianjin Coko Toy Co., Ltd. In 2002, Lego Group's Swiss
subsidiary Interlego AG sued the company for copyright infringement. A trial court found many Coko bricks to be
infringing; Coko was ordered to cease manufacture of the infringing bricks, publish a formal apology in the Beijing Daily,
and pay a small fee in damages to Interlego. On appeal, the Beijing High People's Court upheld the trial court's ruling.[10]
In 2003, The Lego Group won a lawsuit in Norway against the marketing group Biltema for its sale of Coko products, on
the grounds that the company used product confusion for marketing purposes.[11]
Also in 2003, a large shipment of Lego-like products marketed under the name "Enlighten" was seized by Finland customs
authorities. The packaging of the Enlighten products was similar to official Lego packaging. Their Chinese manufacturer
failed to appear in court, and thus Lego won a default action ordering the destruction of the shipment. Lego Group footed
the bill for the disposal of the 54,000 sets, citing a desire to avoid brand confusion and protect consumers from potentially
inferior products.[12]
In 2004, Best-Lock Construction Toys defeated a patent challenge from Lego in the Oberlandesgericht, Hamburg.
The Lego Group has attempted to trademark the "Lego Indicia", the studded appearance of the Lego brick, hoping to stop
production of Mega Bloks. On 24 May 2002, the Federal Court of Canada dismissed the case, asserting the design is
functional and therefore ineligible for trademark protection.[13] The Lego Group's appeal was dismissed by the Federal
Court of Appeal on 14 July 2003.[14] In October 2005, the Supreme Court ruled unanimously that "Trademark law should
not be used to perpetuate monopoly rights enjoyed under now-expired patents" and held that Mega Bloks can continue to
manufacture their bricks.
Because of fierce competition from copycat products, the company has always responded by being proactive in their
patenting and has over 600 United States–granted design patents to their name.[15]
Toy production
Lego products are mass-produced, packaged and shipped on a large scale.
Lego Produktion AG was a major production facility for Lego. It was founded in
Switzerland in 1974.[16] At the time of its announced closing in 2001, 30% of
the world production of Lego was produced at the Swiss facility in Baar.[17] The
Baar facility eventually closed in 2004[18] with the remaining Swiss production
facilities closing in 2005. Today, only the sales and finance department of Lego
is located in Switzerland.
Environmental issues A Lego injection moulding plant in

Neuhof, an area of Baar,
Lego acknowledges the impact of its operations on the environment, in Switzerland
particular in areas such as climate change, resource and energy use and waste.
All manufacturing sites are certified according to the environmental standard
ISO 14001. The first Borkum Riffgrund 1 wind turbines off the coast of Germany began producing electricity in February
2015, which will help The Lego Group reach its goal of being based 100% on renewable energy by 2020.[19] The company
claims to recycle 90% of its waste and that it had made its operations nearly one-third more energy efficient over the five-
year period ending 31 December 2013.[20][21] It is seeking alternatives to crude oil as the raw material for its bricks.[22]
This results in the establishment in June 2015 the Lego Sustainable Materials Centre, which is expected to recruit more
than 100 employees, as a significant step towards the 2030 ambition of finding and implementing sustainable alternatives
to current materials.[23]
In 2011, Lego bowed to pressure from the environmental campaigning organisation Greenpeace, reportedly agreeing to
drop supplier Asia Pulp and Paper, and pledging to only use packaging material certified by the Forest Stewardship
Council in future.[24] The environmental group had accused Lego, Hasbro, Mattel and Disney of using packaging material
sourced from trees cleared out of the Indonesian rainforest.[25]
Lego partnered with the oil company Royal Dutch Shell in the 1960s, using the company's logo in some of its construction
sets. This partnership continued until the 1990s, and was renewed again in 2011.[26] In July 2014, Greenpeace launched a
global campaign to persuade Lego to cease producing toys carrying the oil company Shell's logo in response to Shell's plans
to drill for oil in the Arctic.[27] Shell's PR company valued the most recent two-year deal with Lego at $116 million, and
reported that Shell achieved a 7.5% worldwide sales uplift during the promotion video from Iris International.[28] Lego
announced that when the latest contract between the two companies comes to an end it will not be renewing it.[29]
As of August 2014, more than 750,000 people worldwide had signed a Greenpeace petition asking Lego to end its
partnership with Shell.[30] Lego responded saying they "expect that Shell lives up to their responsibilities wherever they
operate" and that they "intend to live up to the long term contract with Shell, which we entered into in 2011."[31]
Meanwhile, Greenpeace produced a video campaigning against the Shell partnership; it received extensive press
coverage[32][33] and was viewed more than six million times on YouTube.[34] In October 2014, Lego announced that it
would not be renewing its promotional contract with Royal Dutch Shell but did not say when the existing deal with Shell
expires. Greenpeace claimed the decision was in response to its campaigning.[35]
Gender equality
In January 2014, a handwritten letter to Lego from a seven-year-old American girl, Charlotte Benjamin, received
widespread attention in the media. In it the young author complained that there were "more Lego boy people and barely
any Lego girls" and observed that "all the girls did was sit at home, go to the beach, and shop, and they had no jobs, but the
boys went on adventures, worked, saved people … even swam with sharks".[36][37]
In June 2014, it was announced that Lego would be launching a new "Research Institute" collection featuring female
scientists including a female chemist, palaeontologist, and astronomer.[37][38] The science-themed project was selected as
the latest Lego Ideas winner, and was submitted by Ellen Kooijman, a geochemist in Stockholm.[39] Lego denied claims
that the set was introduced to placate criticism of the company by activists, pointing to its Lego Ideas origins. The
Research Institute range sold out within a week of its online release in August 2014. The BBC's Tom de Castella reported
that Kooijman was pleased with the set's final design, despite the addition of face make-up to her original proposal, and
that Becky Francis, professor of education and social justice at King's College London, who had been "very, very
disappointed" by Lego Friends, is a fan.[40]
Legoland
The Lego Group has built eight amusement parks around the world, each
known as Legoland. Each park features large-scale Lego models of famous
landmarks and miniature Lego models of famous cities, along with Lego
themed rides. The first Legoland park was built in Lego's home town of Billund
in Denmark. This was followed by Legoland Windsor in England, Legoland
California in Carlsbad, US and Legoland Deutschland in Günzburg, Germany.
In addition, Legoland Sierksdorf was opened in 1973, but soon closed in 1976.
In July 2005, the Lego Group announced that it had reached a deal with private Legoland Discovery Centre in
investment company the Blackstone Group to sell all four parks for €375m to Duisburg, Germany
the Blackstone subsidiary Merlin Entertainments. Under the terms of the deal,
The Lego Group would take a 30% share in Merlin Entertainments and
positions on their board.[41] The sale of the theme parks was part of a wider strategy to restructure the company to focus
on the core business of toy products.
In 2010, Merlin Entertainments opened the first Legoland water park at the Legoland California site. On 15 October 2011,
Merlin Entertainments opened their first new Legoland park, Legoland Florida, in Winter Haven, Florida. It is the largest
Legoland opened to date at 145 acres, and also only one of the Legoland parks opened in the United States. The other
Legoland (opened at a later date) water park was opened near the same location on 26 May 2012 after only 4 months of
construction.
Merlin Entertainments opened their second new Legoland park in Nusajaya, Malaysia under the name Legoland Malaysia
on 22 September 2012.[42] It is the first Legoland in Asia and was quickly followed by another Lego-themed water park in
the same area. The first Lego hotel has also opened near the site. People who stay in the hotel will also get tickets to the
theme park and water park.[43]
Merlin Entertainments has also planned several new Legoland parks: Legoland Dubai, Legoland Nagoya[44] (scheduled to
open in 2015), and Legoland Korea[45] (also scheduled to open in 2015). In addition, they have opened four new Legoland
Discovery Centres, which take the Legoland concept and scale it down to suit a retail park environment.
Retail stores
The Lego Group operates 138 retail stores (83 in the United States, 14 in the United
Kingdom, 11 in Germany, 10 in Canada, 7 in France, 2 in Spain, 2 in Austria, 2 in Italy, 2
in Denmark, 1 in Belgium, 2 in China, 1 in Sweden, 1 in Poland, 1 in India, 1 in Lithuania
and 3 in Mexico.).[46]
Europe
October 2002 saw a significant change in The Lego Group's direct retail policy with the
opening of the first so-called Lego Brand Store in Cologne, Germany. The second, in
Milton Keynes, UK, followed quickly – several dozen more opened worldwide over the
next few years, and most of the existing stores have been remodelled on the new Brand
Store template. One of the distinctive features of these new stores is the inclusion of a
A Lego retail store
"Pick-A-Brick" system that allows customers to buy individual bricks in bulk quantities.
How a customer buys Lego pieces at a Pick-A-Brick is quite simple: customers fill a
large or small cup or bag with their choice of Lego bricks from a large and varied selection and purchase it. The opening of
most of these stores, including the 2003 opening of one in the Birmingham Bull Ring shopping centre in England, have
been marked by the production of a new, special, limited edition, commemorative Lego DUPLO piece. Lego opened the
first brand store in its home country Denmark in Copenhagen on 13 December 2010. There are 2 stores in Austria, 1 store
in Belgium, 12 stores in Germany, 13 stores in the United Kingdom, 6 stores in France, 2 stores in Spain, 1 store in Sweden,
1 store in Denmark, and 1 store in Lithuania for a total of 39 stores in Europe. In 2016, 2 stores have been opened in Milan
(Italy) and another in Verona (Italy)
North America
In 1992, when the Mall of America opened in Bloomington, Minnesota, one of its premier attractions was the Lego
Imagination Center (LIC). An imagination centre is a large Lego store with displays of Lego sculptures and a play area with
bins of bricks to build with. The store inventory includes a large selection of Lego sets for sale, including sets which are
advertised in Lego catalogues as "Not Available in Any Store." A second imagination centre opened at the Disney Springs
(formerly Downtown Disney) at Walt Disney World Resort in Orlando, Florida. Between 1999 and 2005, Lego opened 24
further stores in North America in 23 states. As of 2016, there are 90 Lego stores operating or soon-to-be operating in
North America in 32 US states and five Canadian provinces.[47] These stores sell various Lego merchandise, including
minifigures, Pick-a-Brick, and custom packaged minifigures.
India
The first Lego store in India was opened in Chennai, Tamil Nadu in March 2014 by Funskool, under licence from the Lego
Group.[48]
Lego Interactive
Lego Interactive (formerly Lego Media and later Lego Software) was the video game publishing division of The Lego
Group.[49] The company was founded as Lego Media in 1996 and headquartered in London, England.[50] In February
1999, Lego Media announced their move into the girls' software industry, starting with Lego Friends.[51] Eventually, The
Lego Group opted out of the video game business and Lego Interactive was shut down.[52] Former Lego Interactive staff
opened Giant Interactive Entertainment, which later became part of TT Games.[52]
Financial results
In 2003, The Lego Group faced a budget deficit of 1.4 billion DKK (220 million
USD at then current exchange rates; equal to EUR 175 million),[53] causing
Poul Plougmann to be replaced by Kjeld Kirk Kristiansen as president. In the
following year, almost one thousand employees were laid off, due to budget
cuts. However, in October 2004, on reporting an even larger deficit,
Kristiansen also stepped down as president, while placing DKK800 million of
his private funds into the company.
In 2005, The Lego Group reported a 2004 net loss of DKK1,931 million on a
total turnover, including Legoland amusement parks, of DKK7,934 million. Lego factory in Kladno, Czech
Republic, established in 2000. This
For 2005, the company returned a profit of DKK702 million, having increased is one of several sites in the world
its revenue by 12% to DKK7,050 million in 2005 against DKK6,315 million in where Lego toys are manufactured
2004. It also cut expenditures and disposed of amusement parks and a factory (Denmark, Hungary, China and
Mexico are the others).
in Switzerland.
In 2011, sales for the company grew 11%, rising from $2.847 billion in 2010 to $3.495 billion in 2011. Profit for 2011 fiscal
year increased from $661 million to $776 million. The increased profit was due to the enormous popularity of the new
brand Ninjago, which became the company's biggest product introduction ever.[54]
In 2012, it was reported that The Lego Group had become the world's most valuable toy company ahead of Mattel with a
value at over $14.6 billion.[55]
The Lego Group delivered a turnover of DKK14,142m in the first half of 2015 with an increase of 18% compared with the
same period in 2014 measured in local currency (i.e. excluding the impact of foreign exchange rate changes). Net profit for
the first half of 2015 was DKK3,553m compared with DKK2,715m for the first half of 2014. First half-year sales were driven
by double-digit growth across all geographical regions and strong product innovation on themes such as Lego Ninjago,
Lego Elves and Lego Creator.[56]
The Lego Group announced on 4 September 2017 its intention to cut 1,400 jobs following reduced revenue and profit in
the first half of the year, the first reported decrease in 13 years.[57] The revenue losses are due to a more competitive
environment, where the company has to compete not only against its traditional competitors Mattel and Hasbro, but also
against technology companies such as Sony or Microsoft as more children use mobile devices for entertainment.[58] The
job cuts account for 8 percent of the company's total work force.[57] On May 2018, the company made it to Forbes top 100
World's Most Valuable Brands 2018 [59], being 97th on the list.
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External links
Official website (https://www.lego.com/)
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Coordinates: 55.7345323°N 9.1244228°E

Contents Founded 10 August 1932

History Founder Ole Kirk

History Net income 9.4 billion

1934–1936 1936–1946 1946–1948

1948–1950 1950–1953 1953–1954

1954–1959 1959–1964 1964–1972

Environmental issues A Lego injection moulding plant in

32. "This Is Why People Are So Upset at LEGO" (http://time.com/2976549/this-is-why-people-are-so-upset-at-lego/).

Retrieved from "https://en.wikipedia.org/w/index.php?title=The_Lego_Group&oldid=885015308"

This page was last edited on 25 February 2019, at 12:15 (UTC).

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