Lego builds its way to ‘most powerful’ title

It is a banner time for plastic bricks. Lego is already the world's largest toy company and now it has laid claim to the title of the world's most powerful brand.

Lego builds its way to 'most powerful' title
Strong times for Lego. Photo: Pascal/Flickr

Lego bricks have been a go-to toy for kids worldwide for more than six decades, but the Danish company has never been in a better position than it is today. 

Having recently overtaken Mattel as the world’s biggest toy company by sales, the Billund-based Lego has now also surpassed Ferrari as the world’s most powerful brand, according to the Global 500 study from Brand Finance

Lego rode the success of The Lego Movie to the top spot in the Brand Finance report, with the company scoring highly in categories like loyalty, familiarity and corporate reputation. Coming behind Lego as the most powerful brands were PWC and Red Bull.

See also: Lego now the world's largest toy company

“Lego is a uniquely creative and immersive toy; children love the ability to construct their own worlds that it provides. In a tech-saturated world, parents approve of the back-to-basics creativity it encourages and have a lingering nostalgia for the brand long after their own childhoods,” Brand Finance wrote. 

The Global 500 study said that despite its old-school appeal, Lego owes much of its recent success to the Hollywood blockbuster The Lego Movie.

“[The movie] was a critical and commercial success, taking nearly US$500m since its release a year ago. It has helped propel Lego from a well-loved, strong brand to the world’s most powerful,” Brand Finance wrote. 

See also: Lego continues to build success in digital age

While Lego claimed the “most powerful” title, Apple was declared the world’s most valuable brand. In those rankings, Lego came in at number 382 on the 500-company list, behind fellow Danish companies Maersk (342) and Arla (364).

Twitter took the crown for the fastest growing brand, although the microblogging service has not been growing in Denmark, where it has failed to catch on to the extent that it has in other countries. 

Lego was founded in 1932 by Ole Kirk Kristiansen, the grandfather of the current owner, in a small workshop in Billund, and took the name Lego two years later. It started out making products like wooden ducks, while the iconic plastic brick in its present form dates back to 1958.

The company opened a fifth "main office" in London in November as the company seeks global growth.

One key target is Asia. As well as offices in Shanghai and Singapore, the company started building a new factory in China's Jianxing, south of Shanghai, last year to build Lego products for sale in Asia.

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Denmark’s toy giant Lego offers staff bonus after bumper year

Danish toymaker Lego, the world's largest toymaker, Denmark's Lego, said on Tuesday it will offer its 20,000 employees three extra days of holiday and a special bonus after a year of bumper revenues.

Lego is rewarding staff with a Christmas bonus and extra holiday after a strong 2022.
Lego is rewarding staff with a Christmas bonus and extra holiday after a strong 2022. File photo: Ida Guldbæk Arentsen/Ritzau Scanpix

Already popular globally, Lego has seen demand for its signature plastic bricks soar during the pandemic alongside its rapid expansion in China.

“The owner family wishes to… thank all colleagues with an extra three days off at the end of 2021,” the company said in a statement.

The unlisted family group reported a net profit of more than 6.3 billion Danish kroner (847 million euros) for the first half of 2021.

Revenues shot up 46 percent to 23 billion kroner in the same period.

It had been “an extraordinary year for the Lego Group and our colleagues have worked incredibly hard,” said the statement, which added that an unspecified special bonus would be paid to staff in April 2022.

Lego, a contraction of the Danish for “play well” (leg godt), was founded in 1932 by Kirk Kristiansen, whose family still controls the group which employs about 20,400 people in 40 countries.

READ ALSO: Lego profits tower to new heights as stores reopen