When I read the posting from Xingye Cui’s Blog called “Lego’s expansion to China,” I realized that Lego planed to build its first factory in Shanghai, China.  The main drivers for the strategy is an increase demand in Asia and an attempt to save time during the process of ordering and delivering.

LEGO CHINA-GOOGLE

What Lego does well is its diverse approaches to both current and potential consumers such as lego homepage is available in 21 languages and its creative outdoor advertising . Today’s marketing becomes more complex, I believe how effective is the shopping experience becoming more and more important.  Lego takes the form of recognizable approaches to draw consumers’ attention, such as in-store displays and firsthand experiences. These arise consumers’ interests by imagining how wonderful it would be if they bring it to home and enhance potential sales by enabling consumers to touch and feel the products before purchasing. In addition to usual forms of promotion, Lego adds Chinese elements to its products. Since Chinese parents pay more attention on their kids’ education and they try to let kids learn more other than play more, Lego emphasizes its products as the function of educational toys.  Besides, Lego is still hard to dominate the toy market in China. The main challenge is its expensive selling price compared to other brands’ toys. Not many parents want to pay that much money (¥400+ in yuan) on purchasing lego toys while they can easily find similar toys in the market. Another issue is that consumers are able to find lego stores in shopping malls but seldom in supermarkets(I guess because its relatively high price.) Overall, Lego has great market in China.

Reference: http://online.wsj.com/article/SB10001424127887323415304578368161124637122.html?KEYWORDS=lego