The billionaires behind the Lego toy industry were left without $ 150 million in just one day. Bloomberg reports that millions have been lost after just one failed investment.
Kirkby’s family of Kirk Christiansen’s family owns $ 16 billion worth of Lego company shares, and those shares fell nearly $ 150 million.
Lego billionaires have remained loyal to the ISS despite rising interest in that company, which is currently close to 7.5 percent of its core capital. CEO of ESS Jeff Graveshorst had previously said he wanted to target only the biggest clients and get rid of the small ones, and apparently such a strategy cost them a lot.
He acknowledged that he was still too ambitious in his approach, but that the new route on the second of August questioned his CEO status.
Lego is a type of toy consisting of small pieces of plastic that can be welded together, thus doing what is intended. The parts are simply joined and separated (no glue, scissors …), which contributes to faster assembly. The Lego parts are made of durable materials, so playing can take years. The most important of these cubes is fantasy, since no technical skill is required.
Lego cubes are one of the most popular toys for children and adults. Cubes can be used not only at home, but also in schools and kindergartens, for development and logic. These cubes have long since ceased to be toys, but objects of worship for the whole world. There is no country in Europe that does not have its own “lego” fan club.
The name “lego” comes from the phrase “leg godt”, which in Danish means “enjoy the game”. The first “Lego” cubes were made in 1949. Although the name is protected, the word “lego” has become synonymous with the type of toys that can be folded in some way. Interesting is the fact that the 1963 cubes can be matched with today’s. Lego cubes are made with a precision of two micrometers, producing an average of about six hundred pieces of lego cubes per second.
Lego’s popular plastic cube turns 60 in 2018. The Danish company no longer has patent protection, and imitators have long sought to capture and surpass its success. At the same time real competition is actually fueled elsewhere.
For more than half a century, Lego colored plastic cubes have been used to make buildings, cars, planes and whole-world imaginary worlds.
There are pirates, princesses and spaceships along with a whole host of constructors dedicated to blockbusters such as Star Wars, Pirates of the Caribbean and Harry Potter.
At the same time, competing firms have released “clone” products that look a lot like the original, and the Danish family company has to compete with online games as well. Lego accounting documents no longer show the previous good form.
It started about 60 years ago on January 28, 1958. Former Lego CEO Godfred Kirk Christianensen patents a small double-row plastic cube with four protruding sections and three openings inside, giving birth to the famous Lego figure. Hidden tubes are the secret that holds parts together and more stable than other cubes.
The technical patent expired in 20 years
Today, any company can copy Lego cubes and many do so.
Sluban, a European-based company based in the Netherlands but manufacturing in China, makes products that can be linked to Lego cubes, but they are much cheaper.
Other companies like Lepin and Wow have similar strategies. They even offer Lego themes already worked out. The difference is that they do not give up on soldiers and tanks, which are taboo for Danes for ethical reasons.
Lego can do nothing against the copy, said Danish patent attorney Thorbjorn Swanstrom. “The cube looks like it does because it has a function,” he said.
For years, Lego has been suing its imitators, often in vain, and Swanstrom says Lego cubes can no longer be protected.
“We all know: none of us want competition, it’s great to have a monopoly,” Swanstrom added.
Imitations enter Lego’s core markets. The first competing products were sold only in Asia, then in Greece and Turkey.
“They are now coming to northern Europe,” Swanstrom said. Even in the home of Lego, Denmark, a major toy retailer recently offered copies of Lego shortly before Christmas.
In Germany, Lego continues to be the undisputed market leader. According to the German Toy Trade Association (BVS), the Danish company is the largest manufacturer of toys on the German toy market – well ahead of Ravensberger, Playmobil and Simba.
“According to German statistics, copies of Lego have not yet appeared,” said association head Will Fischel. According to the association, however, Lego turnover in Germany fell by two percent between January and October last year.
This is part of Lego’s broader tendency. In the first half of 2017, Lego’s sales and profits declined by three to five percent over the same period last year. Even in 2016, it was full of challenges, especially in important markets in Europe and the US, where sales declined.
Lego recently announced it would cut 1,400 jobs worldwide, or about eight percent of the company’s staff.
Despite the threat of growing competition, the Danish company seems to be trying to stay calm.
“Fair competition is in our interest,” company spokesman Roar Runde Trangbek said.
Lego saw the change in the toy market and is now investing in an online platform where children can download construction projects and share photos of their Lego models. The point is to give the product a “digital character”.
“We want to be a part of everything that children spend time with,” Trangbek said. “It’s all focused on Lego cubes,” he added.