How Lego Took Over the World

In the last 10 years, Lego has grown into nothing less than the Apple of toys: a profit-generating, design-driven miracle built around premium, intuitive, highly covetable hardware that fans can’t get enough of. Last year, fueled in part by ti]The Lego Movie[/i]’s Pixar-size popularity, the privately held company briefly surged ahead of rival Mattel to become the biggest toy manufacturer in the world, reporting first-half profits of $273 million on revenue of $2.03 billion.

It’s a remarkable achievement, particularly considering that Mattel makes a huge range of products—including ­Barbie, Hot Wheels, Fisher-Price, and even the Lego knockoffs Mega Bloks—while Lego mostly sticks to variations on a single toy. The company has recently moved beyond its core markets of Europe and North America with a major push into Asia, where it saw double-digit growth in 2013. A brand-new manufacturing and distribution center in China is being built solely to meet growing demand on that side of the planet. “It’s a very simple idea,” says Knudstorp. “All bricks are complementary. They all fit together. Which creates a system that you can be endlessly creative in.”

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