Opening a Lego set can evoke both a sense of overwhelm and excitement. With countless bricks and intricate details included in each box, the enthusiasm for constructing brick castles, rocket ships, city skylines, and more has been captivating children for over 92 years.
Lego’s success remains largely unmatched by other companies. Its toys have appealed to multiple generations, attracting both adult hobbyists reconnecting with their cherished childhood toys and younger audiences. Since its modest start in 1932 as a carpenter’s passion project, Lego toys have grown to become an essential part of childhood. Whether it’s architecture, anime, racing, or jazz music—there is likely a Lego set that fits the theme.
Despite the potential threat from more addictive and appealing electronic gadgets, the family-owned Danish company continues to thrive. Lego reported record results in 2024, achieving a 12% sales growth, contrasting with the toy market’s overall 1% decline.
The question arises: what is the secret that keeps Lego appealing to both children and adults through its vibrant bricks? Fortune gained exclusive insight into the behind-the-scenes processes of Lego’s product development and how the brand maintains its relevance.
One of Lego’s enduring themes, space, exemplifies what makes its approach distinct and lasting. Dating back to the 1970s, space was one of Lego’s three official categories, along with “castle” and “city.” This theme was designed to symbolize the enigmas of the future, much like castles represented the past. Space has remained popular among children, serving as a realm filled with endless possibilities.
According to an interview with Fortune, Lego’s Chief Product and Marketing Officer, Julia Goldin, expressed, “Lego-building is a passion in its own right.”
Lego recognized early that directly listening to children was essential to understanding their desires. Goldin stated that this intentional shift was made approximately a decade ago and has proven instrumental in reshaping the company’s approach to toy-making.
Goldin emphasized, “What makes a Lego set unique is, first and foremost, really understanding the audience. Not just what interests them, but the right dynamics of the experience.”
A significant factor distinguishing Lego is the quality of its bricks, allowing sets to be passed down through generations. Frédérique Tutt, a global toy industry advisor at market research firm Circana, noted that unlike directionless games, parents perceive Lego toys as beneficial for children’s development, fostering skills like engineering and creativity.
“When parents buy Lego for their child, they think it’s going to help them build their brain,” Tutt shared with Fortune, acknowledging Lego’s approach to create inclusive products.
As a seasoned toy producer, Lego has mastered a system to continuously generate new ideas. The company conducts an annual “boost week,” a rapid brainstorming session similar to those in startups, to spur creative concepts. Designers either invent new ideas or refine existing ones, unburdening them from their daily obligations. The objective is to explore which ideas could become potential Lego sets, though there isn’t a strict checklist, explained Daniel Meehan, one of Lego’s creative leads.
Following the ideation, the next step assesses how “decodable” the models are, including elements that facilitate storytelling and gameplay, such as Lego astronauts or collectible crystals.
In addition to drawing ideas from its in-house developers, Lego also gathers feedback directly from its audience.
“We extensively play-test with kids,” Meehan stated.
From Germany to China, children are gathered to voice their preferences, influencing the development of future sets. Meehan, who leads Lego’s recent space campaign, detailed how a child during a space “DIY test” was flying a wheeled vehicle collecting aliens, neither of which were initially designed.
“In the eyes of kids, it was a perfect space flying vehicle,” Meehan recounted, noting how the child’s suggestion led to the inclusion of more aliens in the set.
By adding aliens to sets such as the Lego space station, the company enriches otherwise straightforward sets and creates a common element that threads through various categories. Meehan informed Fortune that the alien designs serve as a recognizably consistent cue to Lego builders.
Lego’s quality and intricacy can sometimes make its products expensive—occasionally pricier than the latest iPhone. This is particularly true for out-of-market products, prized by collectors and sometimes even targeted by high-value heists in the U.S. The company offers sets across diverse price points to prevent customers from feeling outside the price range. The most basic products can cost just a few dollars, while sets like the 7,500-piece Millennium Falcon may cost around $960.
The meticulous attention to quality and detail, however, is not a recent development. Lego’s founder, Ole Kirk Kristiansen, instilled a strict code of quality, such as reprimanding his son for using fewer coats of paint to speed up production.
This detailed approach is evident not only in space-themed creations and toy development but also reflects in business strategy. For example, meetings helmed by Goldin address current performance and explore future ventures concurrently.
Lego’s legacy is tied to its mission of making play accessible across varied age groups, interests, and skill levels. Meehan explains that the space theme caters to three kinds of audiences: storytellers, often children fascinated by the subject; enthusiasts, keen on learning; and those drawn to space’s artistic aspects.
Tutt pointed out another strength: Lego toys grow with the user, appealing to both children and adults with intricate builds.
Lego’s granular approach impacts how it prices, designs, and markets its sets to emerging adult fans, ensuring a suitable toy for everyone. Goldin emphasized that Lego aficionados “really notice” the small details included because they evoke immense excitement.
“It’s much more than a toy because it’s a very immersive experience,” she commented.
This version of the article originally appeared on Fortune.com on August 25, 2024.
