Lego hopes to build on China success

Denmark-based Lego Group, one of the world's leading manufacturers of play materials, aims to offer a broader range of toys for both children and adults in China's first to third-tier cities, with a greater offering of physical and digitally-enhanced toys.

Last year, Lego China achieved a double-digit growth in terms of revenue, especially with growth in first and second-tier cities, according to Jacob Kragh, general manager of Lego China.

"Lego has a strong commitment to investing in getting products more broadly available in China," said Kragh, adding that the company has opened more than 20 outlets, including flagship stores and certified stores.

In addition to collaborating with third party toy retailers, the company is opening its second flagship store in Shanghai this autumn after the reopening of its exploration center in Shanghai last year.

Lego has also worked with educational institutions by opening more after-school centers to meet the demand from parents in China who are looking for high-quality toys to help their children have a better education.

The company has also expanded its technical and architectural product lines to cater for emerging interests from adult consumers who are fond of a challenging building experience or fans of collecting models of global landmarks, said Kragh. For example, the company will roll out a Bugatti sports car model and a Great Wall of China model later this year.

According to the 2018 Lego Play Study, which invited more than 12,000 parents and children around the world to participate in a survey, including 1,440 Chinese parents and their children, there is an emerging trend on the integration of physical and digital play which has become one of the favorite ways of plays among Chinese children.

Lego has focused on enhancing the playing experience with digital tools. For example, children can code their Lego toys or control the trains with their parents' mobile phones.

The company is looking at reaching more consumers in the country through e-commerce, which contributed to its high-growth last year and will continue to do so in the future.

Lego recently signed a partnership agreement with one of the country's largest internet companies, Tencent, and has plans to further expand its presence in this strategic market.