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Subject: 
Re: According to TLC...
Newsgroups: 
lugnet.lego
Date: 
Wed, 22 Sep 2004 15:11:46 GMT
Viewed: 
3241 times
  
In lugnet.lego, Christian Treczoks wrote:
So we have less sales at lower prices on one side of the pond and more
sales at higher prices on the other.

I think one issue is that most Americans are cheapos. How much we've been
trained to spend on toys for our kids is (I'd guess) different than in Europe. I
dunno how far reaching clone bricks are, but here in the US, there's a lot of
competition with MegaBloks who charge ... uh... I dunno, maybe 1/2 or 3/4? of
what the comparable Lego set would be. So most parents take one look at the
price tag and buy the cheaper thing. Heck, even most AFOL's seem to wait for 25%
off or better deals before we'll buy something.

But something else I don't see in your numbers is cost. Europe may produce 60%
of revenue versus the US with 30%, but how much cost goes into supplying Europe,
being that it's made up of lots of different countries, each with their own
currency, language, etc. US is fairly easy by comparison. If Europe produces
60%, but costs 60%, and the US produces 30% and costs 30%, then it's perfectly
balanced with the existing prices.

DaveE



Message has 3 Replies:
  Re: According to TLC...
 
(...) I'd say less than 1/2. Anyway, here in Montréal, where MegaBlocks are produced... *sigh* Such shame on us.... Terry (20 years ago, 22-Sep-04, to lugnet.lego)
  Re: According to TLC...
 
(...) And this is the first time that the competition is mentioned. As far as I know (I'v been to dutch, german, belgian, british and danish toystores), there is almost no competition from other (clone) brands. That could account for the lower (...) (20 years ago, 22-Sep-04, to lugnet.lego)
  Re: According to TLC...
 
(...) Yea, I'd second that. An important factor may be mass vs. class. Some product in the US has to be big in order to sell better, thus those large, half-empty lego boxes we increasingly see in the last years. But LEGO grew up in a market where (...) (20 years ago, 23-Sep-04, to lugnet.lego)

Message is in Reply To:
  According to TLC...
 
(...) Well, have a look at TLCs own findings. The latest annual report from LEGO - available at (URL) - avoids to give exact numbers, but have a look at the charts: P.3 Total drop in sales: World 29%, US 35% P.4 Worldwide distribution of the sales: (...) (20 years ago, 22-Sep-04, to lugnet.lego)

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