Lego, a company known for its iconic ABS plastic bricks, has a business model that is both simple and incredibly profitable. They purchase ABS plastic for just $1 a pound and sell it back to consumers for about 50 times that amount. The sheer number of Minifigures in the world likely surpasses the human population, showcasing the widespread appeal of Lego products.
As a seller of both new and used Lego pieces, I have experienced firsthand the passion and joy that people have for this beloved toy. With nearly 2 million pieces in my inventory, I can attest to the enduring popularity of Lego, which has remained a favorite since its invention in the late 1940s. Despite facing competition from major toy companies like Mattel and Hasbro, Lego has thrived by focusing on its core products – the brick and the Minifigure.
Lego’s growth in recent years has been nothing short of impressive, with the company expanding into a variety of entertainment offerings such as games, TV shows, films, and apps. This evolution from a simple toy manufacturer to a comprehensive entertainment ecosystem has attracted a diverse range of customers, including adult fans who are willing to pay top dollar for intricate sets and rare pieces.
The rise of adult fans of Lego (AFOLs) has been a significant factor in Lego’s continued success. These passionate collectors not only fuel the resale market but also inspire Lego to innovate and create new products. Platforms like BrickLink have further facilitated the buying and selling of Lego sets, parts, and custom creations, turning Lego into a global phenomenon.
Looking ahead, Lego shows no signs of slowing down, with plans to expand further into the entertainment industry and compete with major players like Disney and Universal Studios. By leveraging its strong brand and loyal fan base, Lego has positioned itself as a formidable force in the world of toys and entertainment. The future of Lego is bright, with endless possibilities for growth and innovation on the horizon.