Today, LEGO is one of the most successful global companies, and in 2015, it was recognized as the world’s most valuable brand. But it wasn’t always this way. The brand’s history has seen both ups and downs. Let’s explore how a Danish family company managed to stay afloat for over a century and overcome numerous challenges along the way.
LEGO – The Beginning
The empire we know today was founded in the 1930s by Ole Kirk Christiansen, the owner of a small carpentry workshop. He earned a living making and selling wooden ladders, ironing boards, and other small items. After his wife’s death, Ole had to raise his four sons alone, which was challenging. The Great Depression hit his modest business hard, forcing him to seek new ways to make a living.
Instead of furniture and ladders, which people couldn’t afford due to financial constraints, Ole decided to make toys. Parents were willing to spend their last pennies to make their children happy. Additionally, toys required fewer materials and were cheaper to produce than larger items. Thus, the LEGO workshop was born, named after the Danish words “leg godt,” meaning “play well.” Soon, Ole’s toys became well-known across Denmark, with a wooden duck that opened and closed its beak while moving becoming a hit.
The Birth of LEGO Bricks
By the late 1930s, the company had expanded, boasting numerous clients and a range of 42 wooden toy models. Not even a fire in 1942, which destroyed both the factory and the entire stock of finished products, could stop the brand’s growth. But what about the bricks or building blocks? Surprisingly, Christiansen did not invent them.
A similar toy called “Kiddicraft Self-Locking Building Bricks” was patented in the UK by Hilary Fisher Page. These were wooden blocks with pegs on one side and holes on the other.
Christiansen liked the idea and developed his building blocks a few years later. They were also wooden and didn’t hold together well, constantly falling apart, so they weren’t very popular. The idea was shelved until new technologies, specifically plastic molding, emerged.
LEGO – The Plastic Era
In the 1950s, plastic toys began to emerge worldwide. They weren’t very popular and, like all new things, caused concern among parents. However, the Christiansen family had no such fears. In 1947, they bought the largest molding machine in Denmark for an enormous sum, exceeding the annual revenue by twice, and began mass-producing bright plastic toys. Among them were “Automatic Binding Bricks” and sets from which various types of houses could be built.
The real breakthrough came in the late 1950s. The bricks were made from durable ABS plastic, and their design was modified to ensure they connected firmly, creating stable constructions. At this time, the core concept of the toy as a system that could grow and transform endlessly was born. All elements released since 1958 have the same connectors and can be used as one set.
Since the 1950s, numerous LEGO sets have been released with various themes, including people, trees, cars, animals, and many familiar items. Yet, all sets can still be mixed to create a unique fantasy world.
LEGO – The Near Fall of an Empire
The owners of LEGO, the Christiansen family, have much to say about achieving success and facing bankruptcy. How could such a successful and well-known brand lose revenue? This happens when attempting to do everything all at once.
One of LEGO’s rules was to discard unsuccessful projects and invest only in the best – “Less is more.” In the 1990s, following thirty years of stability, the company’s management embarked on several large-scale projects like Legoland and launched numerous new lines – clothing, cartoons, computer games. Simultaneously, numerous different sets and pieces were produced, which didn’t sell quickly and just piled up in warehouses.
All this required huge investments and brought minimal profits. The company was on the brink of collapse. Only serious and difficult decisions allowed it to stay afloat.
LEGO’s New Success Story
What did the brand’s owners do in such a difficult situation? They decided to return LEGO to its roots. They opted to discard a vast number of unnecessary products, sell Legolands, and significantly cut costs. The next step was more challenging – to define what LEGO’s future would be.
Extensive research was conducted on how children of different ages, genders, and countries play. True toy fans, not certified designers, were involved in creating new sets. And it worked.
Today, LEGO sets once again allow you to create your worlds. Cartoons and comics are used only to expand or deepen these worlds. LEGO is also actively exploring the virtual world. Modern children are used to video games, so just building in reality is not as exciting. LEGO offers to combine the real and virtual worlds, experimenting with AR and robotics.
LEGO History – How It All Started – Video
To learn more about the history of this global toy giant, watch this video:
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Conclusion
The Danish company LEGO has seen both highs and lows. Yet, for over a hundred years, it has remained under the same ownership and continues to grow and evolve. Looking at LEGO’s development history today, it’s safe to say that its toys will not lose popularity, and the company will continue to surprise us with innovations.
Frequently Asked Questions about LEGO’s History
LEGO was founded in the 1930s by Danish carpenter Ole Kirk Christiansen.
The name “LEGO” is an abbreviation of the Danish words “leg godt,” meaning “play well.”
Among the most popular LEGO toys are the classic brick sets, as well as licensed sets from famous franchises like “Star Wars,” “Harry Potter,” and “Marvel.”