While LEGO remains one of the pillars of international toy brands, that’s never completely ensured its success in terms of product sales everywhere that it’s available. In some parts of the world, LEGO products appear to be undergoing a bad patch in sales figures, like what’s happening in Germany now.
Germany has always been a major market for LEGO, considering that it’s a direct southern neighbor of Denmark, home of The LEGO Group. However, these past few years, there’s been a downturn. LEGO Deutschland reports that its market share for 2017 has declined by 0.4%, continuing the trend from 2016.
And Germany’s southwesterly neighbor Switzerland has had a bad year for LEGO as well. The 2017 revenues for LEGO in that country dipped by 3.3% added to Germany’s 2.6%. It’s disconcerting, considering that before the decline started in 2016, LEGO sales were consistently up for 13 years prior to that.
It should be noted that in 2017, a restructuring by The LEGO Group led to about a thousand of its global employees being made “redundant” and thus let go. One can’t help but feel that there’s a connection between that and the decreasing sales for the company in places like Germany.
Fortunately, there’s still something of a silver lining to all this. According to Plasteurope.com, the German market share for LEGO in 2017, about 16.8%, means that despite sales troubles, LEGO is still a bigger name in toys than Hasbro, Mattel or Playmobil. Furthermore, lines such as Technic, Friends and City remain popular in spite of the sales decrease. That’s a good thing for the future.