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Reuters report on Lego at New York Toy Fair
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lugnet.general
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Sat, 10 Feb 2001 14:09:54 GMT
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Lego: From Building Blocks to High Tech
By Marcus Rubin
NEW YORK (Reuters) - LEGO's showroom at the American International Toy Fair
looks deceptively familiar.
Brightly colored building blocks bubble around happily in plastic tubes.
Small smiling figures stand on model farms. And a life-size LEGO model of
the red-haired, goateed U.S. soccer star Alexi Lalas celebrates last year's
hit, LEGO Soccer.
But behind the traditional facade, the world's third-largest toy maker is
moving rapidly into a high-tech future, seeking to bring modern technology
to its products without losing their soul.
``We want to ensure that creativity remains the core of our business. So we
are trying to strike a balance between things you can build and high tech,''
said Peter Eio, president of LEGO, Americas.
The Danish family-owned company does not make sales or profit figures
public. But, according to Eio, the United States is the company's number one
market, followed by Germany.
``LEGO is unique among toy makers, it is perhaps the only toy label people
will go to the store and ask for,'' said David Leibowitz, managing director
for investment bank Burnham Securities, who has followed LEGO for many
years.
``People go to the store and ask for Barbie, not Mattel, but they will ask
for LEGO,'' he said. Mattel Inc. based in El Segundo, California, makes
Barbie dolls and other toys.
This year, LEGO will be releasing more than 170 new products, its highest
number ever.
Moving Into High-Tech And Action
Topping the list of LEGO products combining technology and creativity is the
Mindstorm line. Aimed at 12-year olds and up, Mindstorm allows kids to build
and program small robots that can then perform simple tasks such as
sweeping.
``It's not a fad, it's been on the market for three years and is building
every year,'' said Eio. ``Mindstorm is very much a part of the 'FIRST'
program we sponsor in schools, seeking to stimulate interest in science and
technology.''
But while Mindstorm may be peaceful and educational, the video game
revolution has also forced LEGO to toy with more action-related products.
Launching in late summer, the Bionicle line consists of six heroes, known as
the Toa, and five villains, know as the Makuta. In addition to the figures,
LEGO will launch two Bionicle video games.
With vicious-looking villains and grim heroes, Bionicle clearly marks a
departure from LEGO's traditional nonviolent image, but Eio is not worried.
``Our policy is, don't do violence for the sake of violence. We don't want
to encourage violence, that's why we don't make any tanks or fighter planes.
But we have accepted it in fantasy settings and we also have medieval
castles with invaders and things like that,'' he said.
Leibowitz agrees. ``I think Bionicle may actually improve the brand, because
it's less violent than other figures, and kids build the characters
themselves,'' he said.
While the details of the Bionicle story line has not been revealed -- that
will happen slowly on the Bionicle Web site (http://www.bionicle.com) -- the
premise is that the paradise island of Mata Nui has come under the dark
shadow of the Makuta. The task of the six heroes is to collect the lost
masks of power, thereby freeing Mata Nui of the evil Makuta.
The outcome of the struggle is uncertain, but LEGO spokeswoman Shannon
Harnett gave a hint. ``Good always triumphs over evil,'' she said.
Equally uncertain is of course whether Bionicle will be a hit, but early
reactions seems positive.
``The Bionicle line has caused quite a stir in the business, the first time
LEGO has gone into the action hero. Retailer response has been quite
positive,'' said Leibowitz. The drive to embrace new technology also
includes LEGO's most basic products, the building blocks. Send a digital
picture of a loved one -- pet, parent or lover -- to LEGO's online store and
for $29.99 the company will send a LEGO Mosaic kit with building blocks to
build into a portrait.
``Mass customization like this is a relatively new concept in the toy
business,'' said Eio, adding that the company hoped to offer
three-dimensional customized products soon.
New Traditional Products
LEGO also has other, more traditional, new products up its sleeve this
season. Among these are the Harry Potter line which will go on sale in the
fall, preceding the eagerly anticipated Warner Brothers movie, scheduled for
release in November. In addition to the movie-based products, Lego will also
be releasing software based on the book.
``I think the Harry Potter Lego series should receive high exposure, due to
the strength of the Lego brand, and the character's popularity,'' said
Nicole Dowswell, a spokeswoman for retailer K Mart Corp. KM.N.
Eio also seems pleased with the Potter license.
``Harry Potter fits very well with Lego, castles have always been very
popular for us, and the entire Potter story is based on this castle-like
school,'' he said.
Last year Lego had an unexpected success -- or ``sleeper hit'' -- with LEGO
Soccer, and is now adding a women's team and a team transporter. However,
Lego has not ventured into other, more widely televised U.S. sports.
``When the soccer concept first came up, we anticipated it would be
strongest in Europe, and not so strong in the U.S. Turned out it was
stronger here, I guess because a lot of children play soccer here even if
it's not on TV,'' he said.
The company was considering expanding the line into other sports, but
according to Eio there were no firm plans.
--
Regards
Lawrence Wilkes
lawrence@wilkesworld.co.uk
www.wilkesworld.co.uk
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Message has 3 Replies:
 | | Re: Reuters report on Lego at New York Toy Fair
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| In lugnet.general, Lawrence Wilkes writes: So much cool stuff here!! (...) <soapbox> More than anything this reinforces the need to fight against that insidious question: "Aren't Megabloks legos the same as LEGO legos, only cheaper?"</soapbox> This (...) (23 years ago, 10-Feb-01, to lugnet.general)
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