Lego, the leading brand in construction toys in the market, is still the strongest against rivals who strive to take its place in the toy industry. Founded in the year 1932 by Ole Kirk Chritiansen, Lego is currently the worlds largest toy company generating revenue of $2.1 billion dollars surpassing Mattel that had only $1.9 billion in sales.
Big toy makers like Hasbro, Mattel and Spin Master and smaller companies like Bridget Direct, Cobi and Oyo Sports have already turned to construction toys to help boost their sales. The interest in the market for construction toys has led to a secondary market of brick rentals.
Despite the competition, a key factor to Lego's success is seen on how they mix and match multiple entertainment properties. The company is providing Lego enthusiast with familiar entertainment names like "Star-wars", " The Simpsons" and even "Halo" the video game.
By also driving out the creative genius of enthusiast all over the world, Jim Silver of TTMP, a toy review website says "User generated content, has drawn a lot of attention to the brand. ultimateley increasing in sales"
Mega brand, a subsidiary of Mattel, finds a different approach. Going beyond the rectangles and squares to maybe get a piece of what Lego cannot bring to the table. Mattel is creating some of the most realistic toys out there to date and is using the same approach of mixing and matching with entertainment properties as well.
There's no question that Mattel will be generating huge revenues with creating toys of big television entertainment names "The Walking dead" and "The Game of Thrones" to name a few, which is also already available in the market right now.
Other companies are also making there way to the top by exploring new themes that do not go with Lego's wholesome brand.
Despite the growing competition, Lego continuously still commands the category with a 65% market share. But researcher say that worldwide market for construction toys will increase to $14.5 billion dollars in 2019 from its $9.3 billion in 2014. The race to filling that gap will not be so alone anymore.