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Reduced prices spur Lego in India

The Danish toy-maker, known for construction toys, always held a premium positioning. However, selling in India is a different game altogether.

twitter-logoGoutam Das | July 20, 2018 | Updated 23:55 IST
Reduced prices spur Lego in India

The Indian toy industry is growing at 12-15 per cent every year in terms of value and now totals Rs 7,500 crore. About 70 per cent of the market is unorganised. The branded players are focussing on better assortment and distribution through an omni-channel approach. Business Today recently caught up with Amit Kararia, Lego's Senior Regional Sales Manager in South Asia. The Danish toy-maker, known for construction toys, always held a premium positioning. However, selling in India is a different game altogether. Here's a summary:  

1. Lego toys can cost up to Rs 70,000. The company adopted a different strategy for India last year when it dropped prices in 29 SKUs. These toys were priced between Rs 399 and Rs 2,400. Kararia says the strategy worked; 42 per cent of last year's India sales came from these 29 SKUs. Overall, the company's business has doubled in the last five years. For the current year, Lego has 32 SKUs that are affordable - between Rs 499 and Rs 2800. This is India's sweet spot.   

2. Lego toys typically work across many age groups and themes. Indeed, the brand has adult fans. Nevertheless, it was perceived to be a boys' toy. The company is now focussing across genders. It has 500 SKUs in India; about 50 of them are for girls, called 'Friends'.   

3. Lego has adopted digitisation for some toys, integrating online and the offline. Lego Boost, a robotics toy, comes for around Rs 20,000. One can build a robot and control it through an app.

4. The company has an omni-channel distribution strategy in India. Lego is available on e-commerce platforms such as Amazon and Flipkart as also in offline stores. The mix of online-offline is equally distributed, Kararia says.

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