LEGO plans in China, Are they lasting?

Lego Acquired a landmark case in China Against two companies that manufactured and sold toys nearly indistinguishable for its LEGO Friends range but branded Bela, the Danish toy maker said. This was in September 2017.The case was filed against two Chinese companies, which had been manufacturing and selling Bela products that were nearly identical to Lego’s. They will finally need to quit copying Lego’s packaging and logos, it said.

It is the very first time that Lego had triumphed In a copyright contest case in China, where copies of its own colorful bricks and figures have been a continuing problem because it attempts to increase share in the $31 billion toys and games market.Earlier this season, the Beijing Higher Court passed a ruling that recognized the Lego logo and name in Chinese as ‘well-known’ trademarks in China, putting the toy maker at a better position to behave against breach of its trademarks.

The China Shantou Intermediate

The court determined that Lego is shielded under Chinese “anti-unfair competition law” to “the distinctive and unique appearance of certain decorative aspects of its packaging across particular product lines (in this case, LEGO Friends)”Acquiring the imaginations of Chinese kids with its own bricks is important to reviving growth for the unlisted company after disappointing earnings in its core U.S. and European economies has brought an end to a decade-long product sales boom.

 

“We think this is very important for the continued Development of a favorable business environment for all companies operating in the Chinese market,” Lego’s vice president of legal issues, Peter Thorslund Kjaer stated.With the case won Lego is planning to develop more about the industry. This has led to more lego similar projects popping out in every part of China.The company, famous for its brightly colored construction blocks, is functioning With local education departments, state schools and the private education providers to get kiddies playing Lego as ways to improve motor abilities, creativity and attention spans.

 

The instructional Push in China goes beyond what Lego does in other markets, in a part a nod into the nation’s disciplined focus on learning but also a reflection of how the industry is flourishing in importance since growth in the United States and Europe slows.

It also taps into the desires of Chinese parents to allow their kids a competitive advantage – even at a younger age.Deng Xianyu, 4-8, was buying her 8-year-old son Lego cubes since he was two and pushes him into Lego classes every weekend. She said she likes that the students learn special skills such as calculating and science as they play.”If it was just putting blocks together, I don’t Think that would be totally necessary,” stated Deng Xianyu, 4-8.The Focus on learning, in a market notorious because of its stiff exam-oriented education system and heaps of homework can help Lego in China as business elsewhere softens.

 

Back in September, Lego said it would lay Off 8 per cent of its staff and revamp its own firm later reporting its first earnings decline in over 10 years, together with weakness especially in the United States and Europe.Its latest revenue figures, For the first half of 2017, showed a decline of 5 per cent to 14.9 billion Danish krone ($2.5 billion at the current market rate) compared with the identical period in 2016.China’s toy marketplace was Estimated at roughly $9.6 billion final year, growing close to 10 percent against 2016, in accordance with the China Toy and Juvenile Products Association. And the preschool segment of its for-profit education market is likely to reach 540 billion yuan ($85.20 billion) by 2020.

 

Back in China, Lego competes with the likes of Mattel Inc (MAT.O), Hasbro Inc (HAS.O) and community economy pioneer Alpha Group (002292. S z). It opened a neighborhood plant in 2016 and last month signed a deal with technology giant Tencent (0700. HK) to produce games.Education With a series of pleasure can be a stylish goal to school education bodies and schools since they look to broaden their curriculums.

 

TIME TO PLAY?

The construction Blocks are specially appealing to younger parents in big cities, who are far somewhat more responsive to the Western notion of “free play” – particularly if it has a educational sheen.Kevin Xing, a translator Beijing spends 10,000 yuan per year sending his six-year-old kid to classes at a Lego training center. In 2016, the two traveled to Shanghai to get a Lego-building contest.”Practically Speaking, it’s not like piano, taekwondo or English classes – you don’t see an immediately tangible impact with Lego right away,” said Xing, adding he had been prompted more by his kid’s enjoyment and long-term development.”So I keep paying for (the classes) anyway,” he explained.

 

Lego, Via its instruction arm that it says is maintained different from the commercial toy industry — and significant company Lego Foundation work with academic centers such as Beijing’s Tsinghua University and other education programs.China’s Ministry of Education and Lego also Collaborated on an “innovative talents training program,” by which more than 10,000 grade school teachers take a part annually.”We are Engaging with the government,” Jacob Kragh, overall manager of Lego at China, told Reuters in a meeting in Beijing, adding this is mostly related to “curriculum development and teacher training.”

 

The Education business intends to “generate a new and more progressive way of teaching science, technology, engineering, and math” – highly precious subjects in China often studied by the country’s political and business elite.

Which would be of interest to parents who are focused on their kids falling behind in a highly competitive school procedure.”Kids Still live in a very rigid system where they are sleep deprived and don’t have much time to play,” said Yang Dongping, dean of Beijing-based 21st Century Education Research Institute.

 

Tu Qiaoliu, a main School teacher at the port city of Ningbo, said that the school had established a Lego project with 1 giant wall and bigger ones for every single class.Lego China head Kragh said the training business did not knowingly attempt to sell Legos into consumers. But parents said there was a obviously pressure to buy should their kids enjoyed the classes.

 

A ship of Lego classic cubes with 790 pieces costs 499 yuan ($78.82) in Lego’s official China online store on Alibaba’s (BABA.N) Tmall, versus $59.99 in its own U.S. online store.”Though “It is quite costly.”($1 = 5.9587 Danish crowns)

That could be of interest to parents Who are concerned about their kids falling behind in an extremely competitive school process.”Kids still live in a very rigid System where they are sleep deprived and don’t have much time to play,” said Yang Dongping, dean of Beijing-based 21st Century Education Research Institute.Tu Qiaoliu, a primary school teacher In the port city of Ningbo, said her school had established a Lego job with a single giant wall and bigger ones for each category.”We chose Lego because teachers Believe the toys can help kids grow and develop,” she said.

 

Lego China head Kragh Explained the Education firm did not knowingly offer Legos to consumers. But parents said there was a demonstrably pressure to buy should their kids enjoyed the classes.A box of Lego vintage blocks with 790 pieces costs 499 yuan ($78.82) at Lego’s official China online store on Alibaba’s (BABA.N) Tmall, versus $59.99 at its own U.S. online store.”It is quite costly.”

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