Danish world famous toy brand LEGO tells Bloomberg it plans to open some 100 China stores a year.
“It may seem strange to invest in China when the market contracts, but we still see very, very big potential,” the CEO said in a phone interview in connection with the Danish firm’s earnings report. As a family-owned company, it can focus on long-term prospects, he said.
The company on Wednesday reported a 1.5 per cent increase in global revenue for the first six months of the year, to 27.4 billion kroner (S$5.4 billion). Meanwhile, net income declined by 18 per cent in the period to 5.1 billion kroner as expenses, which include investments, rose 10 per cent.
As a family-owned company, LEGO can focus on long-term prospects, Christiansen told Bloomberg.
There’s room to grow, given the Asia & Pacific region is Lego’s smallest in terms of goods sold.
“The people who’re most interested in our products and who buy the most are the middle class,” Mr Christiansen said. “And in China, we may see the middle class almost doubling over the next five to 10 years.”
