Subject:
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Re: Four sets reviewd, but only one good one, so be warned!
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Newsgroups:
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lugnet.dear-lego
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Date:
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Sun, 6 Jan 2008 14:21:32 GMT
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Viewed:
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14459 times
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In lugnet.dear-lego, Richie Dulin wrote:
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Well, yes... that’s why I called it the biggest market.
IIRC, LEGO regards the various EU countries as seperate markets. It certainly
has different distribution strategies between them. But I could be wrong.
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That’s all true, but the underlying fact is that they still sell more total
volume to the EU than they do to all of North America, and between the US and
Canada there is more geographical area involved. In other words, even though
distribution deals probably end at every national border in Europe, they still
have to ship stuff into the region through the same transit system. In that
sense, China may very well not be the cheapest option for outsourcing. Between
loss of goodwill value (or perceived worth) in the company, and drastically
increased transit costs over anything they’ve ever had to deal with before,
outsourcing to a weaker economy on the fringes of the EU (particularly nations
that are in the EU so as to take advantage of any intra-Union tax breaks)
would leave their goodwill untouched, save them on transit costs, and still
allow them to knock a huge chunk out of their production labor costs (which was
the whole motivation behind looking at China to begin with). Now, as to what
happens with the parts/sets when they arrive at their destination, that’s all a
matter for Marketing and Sales to sort out.
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