finbold.com
Lego, the Danish toy giant renowned for its colorful plastic bricks, is preparing to expand its entertainment offerings portfolio by targeting the metaverse.
The company is teaming up with Epic Games, the gaming engine company and creators of the popular video game Fortnite, to develop a virtual world that will help it continue to expand its market share and growth streak by entering new digital markets, Financial Times reports.
Lego’s strategy is to continue to grow by offering its products in digital markets, allowing users to recognize the brand even online. CEO of Lego, Niels Christiansen, said:
“We know very well how to immerse consumers into the Lego universe in stores. We’re working very hard to create that feeling of getting into the Lego brand universe also digitally.”
Notably, the company saw significant growth last year, with revenues increasing by 17%, partly due to strong sales in Western Europe and America. Consumer sales also rose by 12% during 2022.
Betting big on the metaverse
While other companies have been moving away from metaverse initiatives, Lego is focusing on constructing digital spaces for children.
The company invested $2 billion in Epic Games in partnership with Sony in April 2021 with the aim of creating its own metaverse platform to bring children closer to the brand in safe and secure virtual spaces.
Since May, Lego has been ramping up hiring to develop in-house digital experiences and plans to triple the number of software engineers in order to take a physical and digital approach.
However, Lego is also optimistic about the future of retail and has been increasing the number of physical stores, with 155 new outlets opening in 2022.