Bloomberg Businessweek - USA (2020-12-21)

B U S I N E S S

11

10

Edited by

David Rocks and

James E. Ellis

Bloomberg Businessweek December 21, 2020

● Lego’sChinastrategyhinges

onhundredsofretailstoresto

boostsalesonline

A Bet on (Plastic)

Bricks and Mortar

OnBeijing’stypicallybustlingWangfujingstreet,

theluxuryboutiquessellinghandbags,shoes,and

clothingaremostlydesertedona Saturdayafter-

noon.ButwedgedbetweenPradaandTiffany,one

shopis packed:Lego.The6,700-square-footoutlet

of the Danish toymaker is crowded with parents

watching their children snap together plastic bricks

to a soundtrack of Christmas songs, while store

employees explain the basics of Lego construction

to shoppers unfamiliar with the toys. “Legos can

keep him away from the TV and the iPad,” Emily

Fang says as her 5-year-old marvels at Chinese-

themed plastic-brick models of dragons and pan-

das. “It undoubtedly has enhanced his patience

and creativity and makes him feel more confident.”

While the double threat of the coronavirus pan-

demic and online competition has slammed sales at

toy stores elsewhere, Lego Group is betting big on

brick-and-mortar retailing in China. With more than

two-thirds of the world’s 2 billion children expected

to be living in East Asia by 2032, the company says

it must be physically present in the region. Over the

twoyearsendinginDecember2021,Legoplansto

morethandoublethenumberofstoresit hasin

China,to 300 in 85 cities. Although Lego doesn’t

disclose sales by country, it says China is already one