China GDP Growing 3% Is Enough for Lego to Win Consumer Market

Jorgen Vig Knudstorp, chief executive officer of Legoland, speaking during an interview in Singapore, on Wednesday, October 2, 2013. Photographer: Munshi Ahmed/Bloomberg
Jorgen Vig Knudstorp, chief executive officer of Legoland, speaking during an interview in Singapore, on Wednesday, October 2, 2013. Photographer: Munshi Ahmed/Bloomberg

The world’s most profitable toy company says its Asian growth ambitions would be perfectly intact even if China grows at about half its current pace. Lego A/S Chief Executive Officer Joergen Vig Knudstorp says the benefits of having China continue its transformation into a consumer-based economy with a strong middle class far outweigh any desire to see growth rates of 7-8 percent. “Even with 3-4 percent growth in China, there would be plenty of growth opportunities for us there, especially as the economy is shifting from being driven by industry to being driven by private spending,” Knudstorp told Bloomberg. Lego on Tuesday reported record sales and profit for 2015. Revenue grew about 40 percent in China, which is roughly twice the company’s global average. Looking over the next 10 years, we see a lot of potential” in China, the CEO said. ‘We’re currently mostly present in the most advanced parts of China, the big cities, where the economy to some extent resembles Denmark. We expect to expand out of those areas and to go deeper in to China.” … Read more : Bloomberg, 01.03.2016