Slower pace in Lego year and strong growth in China
Recently, Lego Group, an internationally renowned children's toy manufacturer, disclosed the financial statements of the previous year. During the period, the company's global revenue and operating profit all declined: In 2017, annual revenue decreased by 8% year-on-year to US$5.8 billion. Excluding the impact of foreign exchange rates, revenue dropped by 7% from 2016. Operating profit was DKK 10.4 billion (US$1.7 billion), down 17% year-on-year. Lego attributed the drop in revenue to inventory clearance in mature markets in 2017. Inventory liquidation in previous years affected Lego’s operating profit and revenue last year. In fact, in recent years, the European and American toy market has been in a state of low saturation growth, and the demand for toys in the market has become relatively mature. The gradual improvement of the e-commerce supply chain has also caused troubles for traditional toy retailers. .
Compared with the sluggish performance of mature markets in North America and Europe, the Chinese market has experienced strong growth. According to the Group's CEO, in 2017, the Chinese market achieved high double-digit growth, which more than offset the negative growth impact of other markets. The fast-growing Chinese market is an attractive cake targeted by children's toy manufacturers. The rising middle class, second-child policy and increasingly open parents give Lego a chance.
Digitization is one of the areas LEGO is trying to promote in China. At the beginning of the new year, Lego announced that it would cooperate with Tencent to focus on mobile games, digital content, and the safety of children's social networks. LEGO has previously launched Lego Life, a social networking application for children. Children can share their LEGO creations and daily life with other people on the platform through emoji while keeping personal information such as names confidential. At present, this app has been launched in 26 countries around the world, and it is also considered to be launched in China in the future.
The company is an industry leading manufacturer and provider of children's amusement facilities, specializing in children's slides, extension equipment, children's furniture, children's toys, fitness equipment and other series of teaching toy products. The company's official website:. Tel. Address: No.16, Chuangqiang Road, Lucheng District, Wenzhou City Light Industry Park.
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