The most influential brand in the world in 2017 was the company manufacturer of children’s toys, Lego.
According to the ranking compiled by the consulting Agency Brand Finance, the brand value of Lego is only 196-th place, but in the rating of influence he left behind Google, Nike, Disney and many other world famous brands.
The rankings of the most influential brands is estimated the popularity and brand recognition, company reputation and customer loyalty.
It should be noted that Lego is not the first time in its history, becoming the most influential brand.
Lego already occupied the first place ranking of the most influential brands in 2015, in 2016, he took second place in the ranking, second only to Disney.
It is difficult to believe that the Danish company in 2004 was close to bankruptcy, its debt exceeded $ 800 million. Even the Chairman of the Board of Directors Brand the Lego Group, jørgen Vig Knudstorp then admitted defeat.
“We stand on the burning ground, we ran out of money and most likely we will not survive”, – he said and then colleagues.
And in 2016, the Lego company reported record revenue of $5.9 billion and net income of $1.5 billion, Some experts have called the restructuring of Lego one of the most successful.
How is a revival possible?
The company abandoned the pursuit of diversification in 2005 company got rid of the Legoland theme parks, which Lego had previously spent a lot of money.
The company is focused on its main area of work is the manufacture of toys. Lego sets are a favorite of children, the older generations are also attracted to them.
That’s why Lego and managed to sell 75 million designers in 2016.
Yes, the company refused completely from diversification, but a new direction Lego is now closely linked with the main. In 2014, the animated film “LEGO. The film” earned $470 million
Three years later, “LEGO Movie Batman” spin-off of the cartoon “LEGO. The movie” – brought the company $312 million
Also today Lego produces video games and mobile apps.
According to experts Brand Finance, one of the strengths of Lego is that the company, creating new products, takes into account not only the interests of the children but also their parents.
Also, the company does not create separate toys for girls and boys – thus, all its products are designed for the widest possible audience.
“They give freedom for creativity children and adults provide an opportunity ponostalgirovat”, – the report says Brand Finance.
Last year the company entered the Chinese market, opened a new factory, which allowed it to reduce the cost of production and compete with manufacturers that sell cheaper toys.
However, the company this year is not only good news. In September, Lego said about cutting 1,400 jobs worldwide, after data for the first half of the year showed revenue down 5% and revenue by 3%. Knudstorp explain this trend by the fact that after five years of rapid growth in all company processes become more complex and require a restart.
“We will build a less complex organization, it will be less than it is now. This will help us simplify existing business model, so our products became available to more children,” said Knudstorp.
It is not excluded, however, that the release of a new episode of “Star wars” will encourage the growth of Lego sales, dedicated to the heroes of this Saga. Interestingly, since 2012, the franchise rights to Star wars owns Disney.
The Lego company is still under the control of the family, who came up with the designers back in the 1950-ies.
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