Lego traces its roots back to 1932 when a Danish carpenter named Ole Kirk Christiansen expanded his business of making wooden ladders and ironing boards by introducing a line of wooden toys, according to Ian Shapira in The Washington Post. Lego, derived from the Danish words for “play” and “well,” began with simple yo-yos, trucks and ducks on wheels.
Christiansen was motivated by the need to earn a living during the Great Depression. Having survived the depression and World War II, the company “…would eventually become one of the most respected brands in the world, alongside Apple and Nike, never mind Mattel or Hasbro,” writes Shapiro.
Yet Lego has hit a “brick wall,” as The Wall Street Journal puts it, having earlier this month reported its first sales drop in 13 years and its plans to lay off 8% of its workers.
Lego’s problems may stem from a corporate structure that’s more complex than some of its toys. Saabira Chaudhuri in the Journal quotes Jørgen Vig Knudstorp, chairman of Lego Brand Group, as saying, “We have built an increasingly complex organization, an organization that is complex to a degree that makes it difficult for us to realize the growth potential we have.”
Shapira in the Post attributes Lego’s problems to competition from more modern forms of entertainment—his article is titled “Lego’s plastic bricks transformed childhood. Are they sturdy enough to survive screens?” Oddly, he never mentions products like Lego Boost (introduced at CES in January), although his article includes a prominent photo of the robot-building and coding set, complete with screen.
As Chaudhuri in the Journal writes, “Lego has in some ways been ahead of the curve in efforts to experiment digitally, even as it has promised to remain committed to its physical brick sets.” She adds, “Digital offerings aren’t threatening to wipe out physical toys anytime soon. Kids ‘are still reading books, still using Legos, people are making a place for physical toys,’ said Judy Ishayik, owner of Mary Arnold Toys, an independent toy shop in Manhattan.”
