Building blocks: Lego's next move | FT Film
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- Опубліковано 15 тра 2024
- Lego tried and failed to make oil-free bricks. So what's next? Millions of people buy, sell and resell Lego through BrickLink - a kind of marketplace for bricks and brick designs. So what can the eBay of bricks tell us about Lego's future challenges?
Produced and edited by Tom Hannen. Additional production and filming: Petros Gioumpasis. Camera: Josh Ausley & Cedric Pilard
00:00 What makes Lego unique?
01:34 The ecosystem of Lego
03:08 Rise of the AFOL - adult fan of Lego
04:11 What is Bricklink and why did Lego buy it?
05:30 A toy company, or an entertainment company?
08:09 Can you make money as a Lego reseller?
11:49 Lego and sustainability
14:34 A single product company that has grown remarkably
#lego #legoland #mattelinc #hasbro #toy #plasticbricks
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On the environmental and sustainability side of things, I think it’s important to highlight that these aren’t single use products. Nobody buys a set and then throws it to landfill after building it. Often these sets get passed down from one generation to the next and are enjoyed over and over and over again.
Excellent point!
Remember Reduce, Reuse, Recycle and in this order. Reusing is significantly better than recycling.
" Nobody buys a set and then throws it to landfill"
I'll bet you a dollar they do.
@@michaelnurse9089 That's not Lego's fault
No
I see no problem for LEGO to use plastic.. No one is going to throw away Lego when they finished it. It can be make into other design for years to come or resell so other can enjoy it. This is same as the argument with plastic christmas tree is more environmental friendly than cutting a tree from forrest every year.
This! I also don't get the problem. It is also a tiny amount of petroleum that is used compared to what we burn away by driving around. Also the CO2 is bound unless you burn your LEGO products..
@@tiefensucht They just make a non-issue an issue. Everything human do create some carbon footprint. I don't see anyone stop living just to create less CO2
I have thrown lots of lego away, most people just outgrow it and it goes in the bin when they tidy their room.
You’re right. I’m never throwing any of my Lego away. 👍
@@alexhope212009 You can sell it or donate it. But that is your choice.
I'm glad to see such a well articulated professional take on lego FINALLY acknowledging how much of an influence on the aftermarket the minifigure is. so often I see this fact completely glossed over, and bricklink itself too.
if Lego ever goes public I'll buy every single share I can
Good luck with that. Lego's competition from the Far East offers already products with higher quality for lower prices.
The owners will go public, when they come to the conclusion that branding no longer is able to sell the stuff and that the downturn is knocking on the door.
Liking a company's product and buying shares are very different things.
That would probably ruin it if they did that.
Like Disney, etc.
I doubt they ever will. Lego is a family owned European company. Those tend to stay private.
Hi, its Tom - the LEGO reseller you interviewed! Thank you so much for having me. If anyone is interested in learning more about LEGO reselling, I have recently created this channel - I will be sharing more about the business over on here (after my university exams!!). Thanks! :)
Hey Tom! I was impressed by your commitment to growing your business. All the best for your exams mate!!
🖤💙💜💙🖤
Hi Tom. Subscribed. One more question - where did they interview you?
@@maddadbricksThank you for the kind words! 😀
@@user-sg7hsjThank you very much! And the interview was done at the Croydon Brick Festival December 2023.
Interesting.
Lego is doing with Bricklink what Ebay did with Craigslist (or variations in other countries):
Making sure that it's JUST as successful that no competitor can take over that market - but not more than is needed for that.
And by owning the platform, Lego (or Ebay for that matter) can make sure that they dictate the limits of the market that platform covers.
Most importantly, they make sure that Bricklink doesn't opens up to alternative bricks.
A broken brick market place would be ideal in their efforts. If they offer a small return for the bricks that are broken, they can remould the bricks into new ones, which would make their model far more sustainable.
They could do this by offering drop off points at sellers, with discount vouchers issued for the return of broken bricks.
From a Lifetime Lego Fan.
What is not explained is that on Bricklink you can select a new or retired set and then it will populate all the bricks from sellers into your cart to build that set. So in theory you can purchase most sets from the past.
Fractal and fungible. Unbeatable combo.
Nice to see my DLR train and London’s Air Ambulance at 4:09
I love LEGO!
Good video but they didn’t cover the massive educational and engineering value of lego too - it’s not just for entertainment.
Also, since lego are generally small masses of plastic per set, I am not sure how their fossil fuel use stacks up against big electronics or apparel makers.
Some statements in this were factually incorrect. Or perhaps they misspoke. Bricklink was never a trading site. Lego group doesn’t owe sellers anything. Being a seller on Bricklink doesn’t make you an enemy of Lego group. While Lego company could potentially ruin Bricklink - so far they have not (fees have stayed the same), they have actually improved the site - getting rid of Bricklink inferior custom products. I’ve been using Bricklink since it was brickbay and I am pretty sure it was never a trading site - it was always a selling site.
Lego made one good movie and a couple of niche shows. They’ve failed miserably at apps. Stick to the brick and they’ll keep having success. Try to become a multimedia company and they will fail.
Good points. That was the first I've ever heard anyone mention Bricklink starting as a trading site, I didn't think that was correct but you've been around a lot longer than I have.
As for how LEGO Group perceives the reseller community negatively, it's seemed so far that they might view Bricklink sellers as an exception. LEGO store employees or customer service reps will even occasionally recommend Bricklink for parts that LEGO didn't have in stock.
Also, the Bricklink Designer Program...it wasn't an intrusion. The AFOL Design Program started in 2019 as a partnership with LEGO, and all the pieces for those sets came directly from LEGO. Then TLG acquired BL around the end of 2019. So the actual Bricklink Designer program ("2021 Invitational") was well after TLG already owned BL.
@@bensbrickstore I agree. I wasn’t sure if they meant the other mocs outside of the designer program because as you said - TLG was directly involved in everything they showed images of in the video from the designer program
LEGO doesn't like the idea of anyone reselling but I don't think they're in fear of competition. For the recognize user groups, this is a big deal. But, it's just for that group. BrickLink was basically a collection of garage sales on a website for a LONG time, and then they got big and TLG saw the possibilities. You can order loose brick on LEGO's site just as easily and it some cases more cheaply. BrickLink just also has the added benefit of having older parts/minifigs/sets.
'The lego movie' and Lego Batman movie where both successful at the box office, so I don't know why you mention "Lego made one good movie", or is this your general opinion about the movies itself and not financially?
I agree with the apps - as far as I don't understand that a bit. My son fell into pieces crying, when there was no paper instruction in Lego "Missions" set and we had to use iPad with an app. Somehow I liked it and I'm actually fine with Lego failing with those :)
Ok, now I feel a little bit better about the tens of thousands of dollars I have in Lego.
I’ve been working on a video exploring this topic for the last 3 weeks just to find someone did it way better than I can 😂
Still make yours and send me a link. I will watch it for sure. 🙏💪
I still have every single brick, element and Mini-Figure from my 40+ years of being a fan and collector of Lego. ABS plastic Lego made from oil is the best use of oil in human history. It will never be burned or thrown away.
Kudos!
I don't know why, but lego fascinated me as a child. Of all computer games I played, I estimate 5 to 10% were lego themed, and it was never weird to me that those games depicted plastic figures. Lego sets were my favorite presents.
As an adult the only reason I'm not into lego anymore is that I can't afford it.
I don't know what it is about them that makes everyone so excited. You could probably write a phd thesis on that.
Good video overall, but what on earth was that Lego vs. Xbox comparison? Fossil fuels are bad primarily because they release CO2 into the atmosphere when they're being burnt. But the oil that is made into Lego bricks is not being burnt, so how does that comparison even make sense? Unless he's talking about the additional fossil fuel actually being burned for energy in manifacturing, but in that case it was horribly framed, and also is not really that interesting since those fossil fuels can be swapped out for renewable energy in both cases
I wish I had the discipline to have the hobby pay for itself. All I do is buy, build, take apart, sort, and then use that loose brick to make my own models. (MOCs.) The design and sourcing parts process takes so much time that I really can't imagine spending any effort ALSO keeping up a store. I have friends in my LUG that do and I just don't understand it.
As someone who is doing a little bit of reselling it is very hard to get it right. This video makes it look easy. You have to pick the right sets as most increase in value slightly. Also you have to buy them at deep discount. It’s getting harder as more people are getting reselling and sets are being hoarded so when they do retire there still is a massive supply of them.
Lego's focus has completely shifted towards adult collectors, so comparing them with Matel or Hasbro makes no sence.
Lego also doesn't own the bricks, just the minifigures.
About sustainability: my children play with Lego bricks that I already played with. And in-between the children of my older brother have played with those very same bricks.
And these bricks will be handed to my grand-children when they are old enough.
I don´t see how this could be any more sustainable.
The demonisation of plastic is just ridiculous. When designed to be used properly, plastic is a functional, safe and long lasting material. I have Lego sets from the 70’s that have been played with for 100’s of hours by brothers, sisters , sons, and daughters. Longevity is by far, more sustainable than biodegradable in this scenario.
Useful for my assignment thanks Financial Times
Lego bricks are never becoming co2 so who cares. They are meant to be kept around forever
the most sustainable product is the one you don't get. the second most sustainable product is the one you never dump.
I’m glad LEGO last forever
Here in germany Lego is getting kinda infamous for suing a lot of small and medium vendors and youtubers who sell any other brands for copyright infringement, so at least the online community is looking more and more to alternative products, which compete not just in price but also in quality.
Lego is wonderful! ⭐️
Nobody in history has used a single LEGO set for more hours than their Xbox lol
I really don't think Bricklink is as big of a threat to Lego as interviewees are making it out to be here. I mean, were it owned by Megabloks, then sure, but it isn't. It's owned by the Lego Group. They'll get a cut of nearly every second hand sale of Lego, because a great deal of it happens on Bricklink. They'll also make boatloads from those sets they're making in collaboration with Bricklink, which being made of second-hand parts, cost even less than new pieces.
So, not only will they make a fortune selling us $1/per pound ABS plastic for 50x that price, they'll also make more money nearly every time that brick is sold down the line. Any other company would kill to have that kind of control and share of the second-hand market for their product. If they kill Bricklink, the sellers will just go elsewhere. If they keep it around, then the sellers stay on Bricklink, under Lego's direct supervision.
It is simple and brilliant.
The beauty of keeping a business private
Lego basically has monopolized ABS plastic and made it a drug as addictive as brown sugar. Hail King plastic👑
@@grapesurgeon George Carlin would have agreed with you! 🤣😂
I love this! LOL
Thanks for adding the background music track. It really helped me concentrate on what the speakers were saying!
Something that isn't mentioned in this (btw great) special on lego is that covid probably helped a lot in letting the company grow. People had nothing to do. Almost the whole world experienced some kind of lockdown.Many collectors' markets grew enormously in that time. I saw the prices go up in the comic collector markets, pokemon card collectors, statue collectors and also lego. Because of the lockdown you were at home, you couldn't go on holiday or go to restaurants. Many people had money left over and put it into things you can do at home. Inflation and current world crises do not help with the current economic climate. I suspect this is also why the lovely female reseller (who I wish the best upon btw) is having her worst sales year in 7 years.
Lego e o legado passado...como será o legado no futuro?!
É certo que as peças de lego dão asas à imaginação ...mas os bonecos são esquisitos!! O que está por trás de blocos da Lego?! E o que a Lego tenta mudar ...além do seu bloco de plástico?!
Yes, environmental concerns about Lego VS XBox in hours/played when deciding what Christmas present the kid will get. This is a totally valid, logical, and future-positive way to raise a human offspring.
Yeah, that was such a stretch of logic I got vertigo from that.
I thought the video was about Lego's next move?
Indeed, the title is kind of clickbait! I’m sure they’d reply that it’s about being a general entertainment business than just a toy maker. Which is an ultra lame analysis for me. There were many open gates being famed in this video. I went “Thank you Captain Obvious!” multiple times ! 🥱
Bruh you aren't burning the oil in the plastic... how is that effecting the environment?
That dude is never going to be a doctor might as well carry on with his lego business. He'll be so much happier 😂🎉😊
Lego is my weakness. I logged it all on brickset… spent about $6k last year 😅
BRING BACK BIONICLE!!!!
"... Parents like buying their kids a toy that keeps them away from screens."
Ahhh ... thats why they abandoned the physical remote controls with control+ ... and try to get on the app-market!
I mean ... eeerrm ... huh???
Is this the guy that does the great art explained videos??? Voice is identical?
amazing company. it's a powerful IP.
5:45 Is Hasbro going bankrupt?
What a wonderful little film about Lego which is very interesting and informative.
Thanks so much for including a clip from our video "Theseus Takes a Walk". ✿(◠‿◠)✿
The original LEGO Movie 🦾
🖤💙💜💙🖤
@@maddadbricks ❤
found myself thinking that carbon fiber legos might be next for a second there. If ABS plastic goes south lego could probably easily find another material. Lego as being between Disney and Mattel good one...
✌️
MEGA BLOCKS, BlueBrixx, COBI....
Lego on the financial times... I feel so bad for kids growing up in this world...
lol Just do a bit more research and you'll see how much people are still playing with vintage LEGO sets that were made 50+ years ago. Any reasonable LEGO fan will never allow LEGO to go to landfill.....
This video fails to mention the growing competition in the building brick space. There are now many manufacturers who offer better product quality for a much fairer price.
I just sold one sticker for 350.- EUR ... One sticker sheet.
😊
lego is a software tool, today everything made out of little parts. I think everyone on earth must be able to play with it, but it is damn too expensive.
if only the quality was so high .. fact is, that if you put the same brick onto others about a 50-100 times, it gets loose very fast. No. It's not the best quality. Try it.
It doesn't need that much! I got legobricks from the early 1990s and they are still playable and connecting very well together. No matter how often they get separated. Bought a couple of 3-in-1-sets a few years ago until today and after four or five times separating different builds they got so damn loose! =(
Lego would be more sustainable if it wasnt for those brown pieces... 🤎
I hope that debacle is never repeated. It's devastating to see untold pieces in my collection--new and used--crumble and disintegrate.
@@blammers I have read people having brittle pieces in new sets
How much plastic in Lego vs an EVs?
15:00 those are fake LEGO. Real LEGO has the logo on ever stud. I recognize the wrong print on Ahsoka and Luke as well. Fake LEGO.
Okay so the minifigures of Luke and Ahsoka are fake but the set is official.
Yet Lego don’t even have a patent on their core product. You can buy identical bricks from companies like Cobi (🇵🇱🇬🇧) or countless others from 🇨🇳 whose products are cheaper (and sometimes better?).
Cheaper? Maybe. But better? Probably not. Children’s toys have high standards for chemical safety, so I’d assume the reason no toy stores sell bootleg Chinese legos is because there’s no proper chemical certifications.
Lego also manufactures in China, and everyone uses ABS as polymer, sorry but wrong😂
Yeah but those fake ones suck. The only reason Cobi is good is because they do military stuff which Lego doesn't
@@alexwallachian7720The only reason Cobi is good is because you can use their damn ships as a club to beat up people! Try that with the Lego Titanic! =)
Being the "largest" grossing toy company is one thing. Having the highest "profit margin" is another. And they are both. Lego Hates people getting too "creative" with their bricks. They may not be a publicly traded company, but they behave just like one. The best competition is no competition. If competition makes them worry too much about having to actually be competitive and they can't destroy them, they do the next best thing ... they buy them.
STOCK / reserve, supply, stockpile RESERVE EXCHANGE stock запас stock, reserve, margin, supply, supplies, stockpile шток
Lego is NOT competing with Universal / Disney. Universal has been releasing the Lego titles since 2020 when Warner Bros.'s rights expired.
I suppose you could argue that Lego is disrupting the market by bringing to the table their IP and a large, international interest - for which there's no price tag. But Mattel is doing the same.
I would consider Mattel and Lego to be production companies working with film studios. So. I do agree they are moving into media, and this is a compelling point, but to call Universal and Disney their competitors is a reach and quite frankly, wrong.