Lego to Double China Store Count This Year
Le Yan
/SOURCE : yicai
Lego to Double China Store Count This Year

(Yicai Global) May 24 -- Lego intends to double its planned number of stores in China, a market where the Danish toy giant had double-digit revenue growth last year.

The Billund-based company will raise its investment in the country, opening 140 stores before the end of this year, according to Huang Guoqiang, general manager of Lego China and senior vice president of Lego.

Lego has three flagship stores and 78 authorized stores in China, Huang told Yicai Global today, adding that the new outlets will mainly be in second- and third-tier cities with a focus on emerging markets.

Lego's total revenue last year rose 4 percent, with China contributing significantly following more investment in the market over the past few years, including the opening of flagship stores and plants. China is also the fastest-growing market for Lego exclusive stores, Huang said.

Lego products are experience-oriented, so opening more brick-and-mortar stores is very important despite the pressure on high street retailers in recent years. The company's main sales revenue still comes from offline stores, he added.

Lego will promote its online business integration, including strengthening cooperation with domestic internet giants Alibaba Group Holding and Tencent Holdings.

"Earlier we used to work together only for the purpose of sales promotion, but now we have more online experience projects," Huang said. "Our company and Tencent's cooperative video section has had over 1 billion views. We are developing a Lego-themed game together, and will release it soon." 

Editor: Dou Shicong

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Keywords: Lego , Exclusive Store , Tencent