This story originally appeared on Best Stocks
Can you buy lego stocks?
Lego stock is not available for purchase since the Lego Group is a privately owned companyThe stock ticket LEGOW – often mistakenly attributed to the Lego group – belongs to a different company, the Legato Merger Corp.
Who is the Lego Group?
The Lego Group
The Lego Group is a privately owned company that produces toys, video games, and moviesIt is best known for its line of bricksOle Kirk Christiansen founded the company in 1932In addition to toys, the company has produced several movies and a popular line of video games based on some of their licensed propertiesThe company employs 18,000 people and has offices in Billund, Denmark; Lausanne, Switzerland; London; Milan; Munich, Germany; Paris; Shanghai; and Singapore.
In 2015 it was the world’s third-largest producer of toysIn 1987, the company was sold to a group of investors led by Kjeld Kirk KristiansenIt has now grown to be the world’s largest toy company, making more money than Disney.
Lego produces traditional construction sets for children under its Duplo brand and other products under the Lego brandIt also maintains a popular line of themed collections based on movies and TV shows for young children and adults.
History of the company
Ole Kirk Christiansen founded the company in 1932In the first year, the company sold 3,878 sets, in 1934, Christiansen bought a car to transport his products from the factory to the nearest railway stationLater on, in early 1947, Lego built its first plastic injection molding machines; during 1949, they began producing plastic toys, and since then, they have sold over 400 billion plastic pieces.
In 1968, the company became a subsidiary of a toy manufacturing company called GKCIn 1986, they were able to produce their video games with the introduction of Lego Computer GamesLater on, in 1990, they acquired a 20% stake in Merlin Entertainment, later renamed The Tivoli GroupToday, they have branches in more than 130 countries.
Lego business model and strength
The Lego Group’s products have diversified from simple bricks to encompass various playsets and action figuresLego began to expand from its original wooden toys, and industrial design work is now done in Billund, Denmark, and Enfield, Connecticut.
Lego operates 36 retail stores (as of the end of 2017) and publishes books and video gamesThe company entered into a licensing agreement with Walt Disney Company in 2001, and Legoland Billund is co-owned by the two companies.
In 2005, Lego became the world’s largest toy company by sales which Mattel did not surpass until 2018For years, the Mattel stock has been one of the stocks to buy, according to analystsThis made analysts assume that Logo would go public, but it never did (a similar scenario would happen to Instagram stock a few years later).
The Lego Group has made its mark on the world, and the future is looking brightAs long as kids imagine a different world, there will always be a place for Lego in the world.
The toy industry in 2021
Kids Toys Market Overview
The kids’ toys market has been growing steadily in the last few yearsWith the popularity of children’s television shows like Dora the Explorer and Mickey Mouse Clubhouse, more parents buy toys for their childrenAs a result, the toy industry is becoming more competitive as new manufacturers enter the marketHowever, there is still some room for innovation.
The toy industry is still lucrativeIn the last few years, toy purchases have been growing steadilyToy sales were up by 7% in 2019, and the market grew by 5% in 2020In 2021, toy sales were up 8%, with many stocks under $2 reaching over 100% increase in a few months.
With the popularity of children’s television shows like Dora the Explorer and Mickey Mouse Clubhouse, parents are buying more and more toys for their childrenIn addition, the popularity of video games and the internet has also led to a rise in kids’ toy purchases.
The toy industry is becoming more competitive with new manufacturers entering the marketToys can be found in grocery stores, drug stores, and discount chainsHowever, there is still some room for innovation.
Some manufacturers are adding more electronics to their products to make them more appealing to childrenFor example, toys like the Furby Connect and Barbie Girl Chat dolls can be controlled with an app on your phoneIn addition, toys with greater educational value are also on the riseFor example, some toys teach children letters and numbers, while others teach them how to play an instrument.
The Impact of Television Shows
As children’s television shows are becoming more popular, their toys are becoming more popular as wellDora the Explorer, for example, has spawned toys, apparel, and other product linesThe manufacturer’s success relies on popularizing the character in various waysThe show is a “value-added” marketing strategy for the manufacturer.
This is an example of how the toys are not only for the children watching the television show but also for the parents that want to purchase merchandise to support their kidsThe show’s popularity has made it possible for both children and parents to enjoy the showThis is just one example of how the kids’ toys market has been growing.
Kids are not just influenced by their parents anymore; they are also influenced by what they see on TVAs a result, the children themselves are becoming product-purchasing decision-makersMany parents will buy products that their children want so they don’t have to hear them whine about not having something at their friends’ houses.
Trends in the Toy Industry
The toy industry has been growing steadily for the last few yearsChildren’s television shows like Dora the Explorer and Mickey Mouse Clubhouse have led to a surge in toy salesToys are becoming more competitive as new manufacturers enter the marketHowever, there is still some room for creativity.
The toy industry is becoming more competitive as new manufacturers enter the marketHowever, there is still some room for creativityOne of the most notable trends in the toy industry is the use of technologySmartphone apps are being used to market new toys, children can play with digital toys, and electronic toys are becoming more popularAnother trend that has been gaining traction is cultural diversity.
The future of the Toy Industry
Toy manufacturers are competing to create the next hottest toyThey want to take advantage of the trends in children’s television and create a toy that will be in demand for several yearsTherefore, the toy industry is always looking for ways to innovateIn 2021 toys stocks have been second only to TaaS stocks in terms of market growth.
One way to innovate in kids’ toys is to create an eco-friendly toyThe toy industry has tried to do this in the past, but it has yet to be successfulThe reason for this is that parents are not willing to pay more for an eco-friendly toy when they are only paying a few dollars for the toy in the first place.
The toy industry should take note of how successful children’s clothing manufacturers have been with eco-friendly clothesThese companies have found a way to make eco-friendly clothes more desirable by looking better and more fashionableThe toy industry should consider doing this for toys, too.
It may be worth considering working with an eco-friendly company to make your company more innovativeYou may also want to consider making your toys look better by adding colors to them or making them look more fashionable.
Lego stock best alternatives
Mattel Inc (NASDAQ: MAT)
Mattel, Incis a multinational toy and board game company founded in 1945 and based in El Segundo, California, United StatesThe company’s products include the iconic Barbie doll.
Mattel is the largest toymaker globally in revenue and second-largest in terms of units sold (after Lego)In 2017 it acquired Canadian video game developer Ludia Incand one year later, Mattel named Google executive Margaret Margo as its CEO.
In addition to toys and games, Mattel produces several other brands, including Fisher-PriceIt operates through three business segments: North America, International, and American Girl BrandsThe company’s slogan is “We Create the Future.”
Mattel has a long-standing history of creating some of the most popular and iconic toys of all timeFrom the original Barbie to Hot Wheels and Matchbox, their products have been on toy shelves for generationsThey also keep up with modern trends by introducing new lines such as Monster High and American Girl Dolls.
Mattel’s stock (NASDAQ: MAT) has risen by 23% in the last five years; many analysts think this is one of the best stocks to buy now. They’ve achieved this by increasing worldwide sales in their North America division by 18%And they’ve done that through increased marketing efforts with products like Monster High dolls and American Girl DollsIts growth has been driven primarily by its ability to foster creativity among children through its products.
Hasbro (NASDAQ: HAS)
Hasbro is one of the leading global players in the children’s and family leisure entertainment industryIt is the largest toymaker in the world, with revenues of approximately $5.12 billion.
When you think of Hasbro, you probably first think of classic games like MonopolyHowever, they’ve grown into so much more than just board gamesThey make hundreds of different toys and games like Play-Doh or Littlest Pet Shop.
Hasbro’s products include traditional toys and games such as Monopoly, Twister, MrPotato Head, Yahtzee, Tonka, Play-Doh, and My Little PonyDigital entertainment products such as NERF blasters and Ouija; films on DVD and Blu-rayChildren’s books; apparel items feature characters from brand franchises like G.IJoe, Mickey Mouse, and Transformers.
The company’s headquarters are located in Pawtucket, Rhode IslandThey distribute their products through various channels, including mass merchandisers, department stores, toy wholesalers, club stores, and web salesIn addition to producing both original and licensed content, the corporation markets its brands through television shows and moviesThe company also produces family entertainment projects from licensing agreements with third parties such as Universal Studios, Disney Films, and Paramount Pictures.
Jakks Pacific (NASDAQ: JAKK)
Jakks Pacific is an American toy company based in El Segundo, CaliforniaIt has two operating divisions: Jakks Pacific, which manufactures toys for the North American market and other markets, and JAKKS Australia, which manufactures toys for the Australian marketThe company was founded in 1947 by Jack Kahl, who invented the stuffed animal bear Raggs.
Jakks Pacific is one of the largest toymakers globally, with over $1 billion in sales each yearThe company designs, manufactures, and markets a wide variety of products under internationally recognized brands, including Disney Princess, Angry Birds; SpongeBob SquarePants; Mario Bros.; Hello Kitty; Pokémon; Barbie; Hot Wheels; Fisher-Price Thomas & Friends.
Jakks is a toy and game company that has been in the business for over 40 years and has sold over 1.5 billion productsThe company has factories in many countries, including China, Vietnam, and MexicoWith new talents like Olivia Munn on board, this could be an exciting opportunity to reach out to a whole new market niche.
Jakks Pacific was founded in 1995 by Jakks Shore, a toy manufacturer from the United KingdomJakks began as a small company located in California with ten employeesOver time, it has grown to have more than 1,700 employees around the worldIn 2021, it had over $1 billion in revenue.
