Lego to Export More Products to Australia

Toy company Lego has announced that it will export more toys to Australian shores next year. This means that Lego’s target sales for next year have increased to $130 million. 

According to Jorgen Vig Knudsorp, Lego has turned itself in the last five years to become to top brand in the toy market. The company has faced challenges from video games. 

Vig Knudsorp is Lego’s chief executive. 

Vig Knudsorp admitted that the company had huge losses in the last eight years. It also experienced negative cash flow of about $200 million. Although the losses were quite significant, this did not mean that Lego even considered closing down the company. 

Speaking at Sydney to celebrate Lego’s 50th anniversary in Australia, the chief executive also said that the Australian business also suffered. Annually, Aussies spend as little as $250 per household on Lego products. 

But things are picking up for Lego. Vig Knudsorp said the Australian business has posted double-digit growth in the last five years. He said he expects the brand to be the number one toy in the Australian marketplace.

Last year, Lego made about $109 million in Australia. In 2013, Lego expects to grow the business by 20 percent. 

Industry observers said the turnaround for Lego is mainly because of Vig Knudsorp’s move to empower its people and capitalize on their successes. Some of its initiatives also included releasing building sets that were inspired by movies like Pirates of the Carribean and Star Wars.