How Lego keeps beating the rest of the toy industry

TL;DR

Lego dominates the toy industry by combining smart IP licensing, adult consumer targeting, and a globally distributed supply chain.

Key Points

• 1.Lego's licensed sets (Star Wars, Marvel, Harry Potter, Formula One) began in 1999 and now drive major sales; adults aged 25–30% of global toy buyers spend more on detailed, displayable sets called "kidults."
• 2.Lego strategically placed factories in Mexico, Hungary, Vietnam, and a Virginia facility opening in 2027 to serve regional markets, cutting shipping costs and reducing excess inventory.
• 3.This regional factory model also makes Lego more resilient than competitors during trade disputes or shipping disruptions since production isn't concentrated in one location.