Lego builds mega blocks for India
The toymaker also eyes single-brand retail stores as it seeks to double its business in country over the next three years.
For instance, one of Lego’s iconic models, the Taj Mahal will be introduced in the country for around Rs 50,000 and the company plans to sell a few hundreds of them. Next on the list is a Rs 60,000 Bugatti Chiron, co-designed by the iconic French carmaker itself. Fourteen other stock keeping units (SKUs), including the Statue of Liberty and the Great Wall of China, will follow.
The Taj Mahal, boasting around 6,000 blocks, is the only set in the Lego portfolio, which has been relaunched due to popular demand. It was in production between 2009 and 2011. The Bugatti has around 3,500 pieces.
Lego’s moves come at a time when things are looking up for global toymakers, with specialist toy retailers, including Hamleys and Toys “R” Us, expanding their presence in India. Hamleys currently has around 50 stores in India compared with only two five years ago. E-commerce, too, had a big role to play in increasing the reach of toys.
“Currently, we follow a distributor-led business model in India,” said Amit Kararia, senior regional sales manager, South Asia, Lego. “Our business has been growing at high double digits.”
The toymaker, considered among the world’s largest, has, however, only begun scratching the surface in India compared with some of its mature markets, according to Kararia. The Indian toy market is pegged at around Rs 3,000 crore currently, which is less than 1% of the global market, according to industry estimates. For a toymaker like Lego, the sweet spot in India lays in price range of Rs 500-Rs 5,000, while globally, its elaborate sets from Star Wars and Jurassic Park witness high demand.
“Despite boasting a target audience of around 35 million kids, the per capita consumption of toys in India is among the lowest in the world,” Kararia said. “Compared with the per capita consumption of a few hundred dollars in the US, the per capita consumption of toys is less than a dollar here.”
But apart from kids, Lego would also like to tap adults in India. “We don’t yet have an Adult Fans of Lego (AFOL) chapter here, although there are hardcore fans like this senior executive in Bengaluru, who has two homes, one for his Lego collections,” Kararia added.