EnToy manufacturer Lego has a lot at stake this holiday season after a 5% drop in revenues was reported for the first half of the year, as outlined in Panjiva research of September 5. The early part of the import season for U.S. sales has looked challenging. Panjiva data for Mexican exports and U.S. seaborne imports (Lego has a global supply chain) shows imports in the June to October period were 5.6% lower than a year earlier.
However, that has included a 38.4% surge in shipments from Mexico in October, while seaborne shipments rose 7.8% in November. That may reflect a late surge in interest following the “Lego Ninjago” movie release in September. The firm is far from out of the woods though as the June to October imports are 21.2% below 2015 levels (which coincided with the “Star Wars” franchise reboot) and 10.8% below 2014 (after the original “Lego Movie” was released).
Source: Panjiva
The company has also faced challenges in its China operations, where it has only just secured its first copyright case against imitation production, the BBC reports. While the market is due to become self-sufficient following the opening of a new factory in November 2016, completed sets from other markets will still likely be imported.
In that regard Chinese imports by Lego’s local subsidiaries fell 13.1% in the past three months and on a year-to-date basis. Presumably the copyright win should lead to an increase in sales and imports in the future, though the new factory is designed to meet 70-80% of Lego’s Asian needs in the longer term.
Source: Panjiva
