In a conversational interview at the LEGO House, CEO Niels B. Christiansen reflects on LEGO’s performance in 2018, highlighting that the company not only stabilized after a challenging year but also achieved growth in both top‑line revenue and bottom‑line profit across all major markets, gaining market share despite a weak toy industry. He explains that this success allowed LEGO to increase development spending by roughly 50%, fueling new product innovation. Christiansen discusses several flagship initiatives: the Hidden Side theme that blends physical bricks with augmented‑reality smartphone experiences; the Duplo train line that pairs a physical train with an app; and the broader strategy of integrating digital play without abandoning the core brick experience. He addresses regional dynamics, noting the surprise success of two China‑exclusive sets and the potential for future globally‑sourced themes. The interview also covers LEGO’s engagement with adult fans through LEGO Ideas, the enduring popularity of modular building sets and Technic collections, and the engineering mindset that drives Technic’s appeal in markets like Germany and Denmark. Sustainability is a major focus: LEGO is introducing plant‑based bricks that meet the same quality standards, and the new headquarters will feature a large solar‑panel roof supplying about 50% of the building’s energy, aligning with the company’s “planet promise.” When asked about personal wishes for future themes, Christiansen declines to reveal specifics, underscoring a measured, forward‑looking leadership stance.
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TranscriptAuto-generated · 15 min
This is always easy, same height.
We're in the LEGO House, and this is Niels, the CEO of the LEGO Group. So good to see you again.
Yeah, good to see you.
We've talked one year ago, and last year was a difficult year for LEGO, but you're back on track, I have to say. So congratulations. What do you think of the numbers?
No, I'm happy with that. When we talked a year ago, we talked about that '18 was to stabilize the business and to start to invest in future growth and new innovation. And yes, we have stabilized. We've even grown. And we've grown our top line and our bottom line, our consumer sales. We've grown in all major markets. We've taken market share around the globe. And we've done this in a year where the toy industry actually had a difficult year. Yes. And despite that, we managed to grow. So we're quite happy with that. And I feel good about the entire organization has contributed a lot. And a lot of people in the city and around the globe are pretty happy about the stuff. So it's a different place. I'm also happy that we've been able to start investing in the future. And you can already see in the annual accounts that we have almost increased our development cost by 50%. So we want to make creative products in the future, more innovation. We talked about a bit last year, technology and digital and creative. So we are actually putting more power behind that. And that hopefully will be good for the coming years.
I think so, too. We've seen Hidden Side at the Toy Fair New York City, where I've been. And it's a new theme. You still have LEGO sets, but you also have your smartphone, which you can use to create your own spooky world. So what do you think of this new theme?
No, I think it's an interesting way of using digital on top of physical. We don't want to go away from the physical brick that we think is so unique and allows everything. But the fact that you can build— it's a new theme. It's a theme with some really creative, interesting builds. And then on top of that, when you have built, then you can take your mobile phone, and then the roleplay you do around that can be brought to life. So in a sense, the building you just built suddenly is alive, and there's ghosts in there, and you can catch them, and you can do— that, I think, So that's an interesting addition. But it's quite important for me that now it's not just digital. It is still taking its outset in a physical LEGO build, because that's where we are, and that's the uniqueness, I think.
So you still can play with bricks, you can build your own models, and then you have on top the possibility to play with a smartphone as well.
Exactly. And it's still a choice. If you like that, then LEGO Hidden Side is really, really good. If you like to do something else, then you buy a LEGO City or LEGO Technic set. So it's not like now everything is digital. other offering. And given that we are LEGO, we've been able to access some of the most advanced augmented reality technology. So I think we can do something really fancy. And I think the kids would like that.
Last year, you mentioned the new Duplo train. I've bought a train on my own for my daughter. We're playing with the train a lot. And then I show her, oh, there's also an app. And since then, Papa, where's your smartphone? But they're still playing with the train as well.
Right. And I think that's the key of it. I don't think we can close our eyes to the fact that children are also interested in digital. digital. And they don't think so much about, do I play one or the other way? If we can make it sufficiently exciting to combine the 2 things, then she will play with the train as well as the iPad. If it gets boring, then she won't. So it's up to us, and it's back to innovation and creative products. And I think that's why we are investing more behind that.
You've mentioned an interesting fact that the market in China is growing and growing a lot. And we've seen recently some exclusive sets I've published some articles, and people say, oh, my goodness, I would love to buy those sets, which are only available in Asia. Why?
Yeah, good question. And I think we're also on a learning course here. It was actually honestly thought of as— it's 2 sets only out of several hundred sets. So it's 2 sets. And the idea of making those sets was actually because China was doing like that. There was a big fair in China in late November. And in order to celebrate that, we thought, let's just— we're opening, and we have a flagship store store openings. Let's just do this, just this one time for this. And it's been hugely successful and a bit to our surprise, actually. We have this reaction from all over the world to say, wow, they're exciting sets. We would like to buy them also. And it actually proves the point that our LEGO building sets, they're global. And we say that all the time. Basically, there is a global demand for it. And I also would say that In the past, a lot of our stories have been sourced in Europe or out of Hollywood or things that we've all known. We have sourced Ninjago as a ninja theme out of Japan and Korea. Would we one day source a theme out of Chinese culture? Maybe. So I think at least we are open to, to say that there are many different ways to get the story, to get a set. But if we have a theme or a set, it is a global one.
So is there a chance that maybe someday the readers of my website could buy those sets in Europe as well? Or is it gone this time, so it's just available in Asia, those 2 sets?
I hear what you say. I don't want to, I don't want to stand here promising you it positively, but I'm hearing what you say, so I'll, I'll carry that back.
So you see, I talked to the CEO. Give us those sets. So anyway, there are a lot of other great sets out there, and you're going to release new Technic sets this summer, and you're a big Technic fan like you told me last year. And we saw in Nuremberg the Liebherr, which is awesome, just a giant set. So, um, have you already played with it? So can you tell us something about it, or is it still not in your home? Let's leave it this way.
It's not in my home, and I, I have to be honest to say I haven't built it yet, but I have played with it. I have played with it, and it's awesome.
This is something I think, too. It's really giant. And there are also some other new sets. So still, I think LEGO Technic is very important for the German market especially. Is it bigger in Germany than in other countries?
It's also very big in other countries. So it's not only Germany, but it is big in Germany. Germany is one of the— if you have a— I mean, I would say there's kind of a third of the world where it's very big, and Germany is one of them. Denmark is one of them. There are several countries where it's high. But it's also growing in the countries outside. So I think the people get their eyes open to the opportunities of what you can build. And typically, the more engineering mindset the country has, the more they really like Technic.
There's one story that just came out a few days ago. When I was in Nuremberg, and then I had been to New York City, and there was a message from Chris McPhay. Hey, I'm going to move to Billund. I'm going to be a LEGO designer soon, which is awesome. Last year, his models have been there in this gallery. And now he's going to be a Creator Expert in architecture. Have you spoken to him in person? What's the story behind it? I mean, he's just a great guy. I met him in person. He's a genius builder. And now you bring one of those persons here to build one from Canada. Can you tell us anything about it?
No, I haven't spoken to him personally, but I'm aware of the situation. And I think it's just a good example when we talk about also adult fans. And we have the LEGO Ideas where we are sourcing ideas where adult fans come up with the most amazing builds. And we pick some of them and we actually make them into products. And there's a big demand for that. So I think it's only logical that we don't only source into kind of ideas that have been lived into products, but also, if there are people out there with very special skills, very creative skills, why don't we let them actually act on building LEGO sets? So the idea is a really good one, and I really like it. I'm
a big fan of his creations, so I'm looking forward to many, many great creator sets in the future, which I'm already a fan of with all the stuff Jamie Brad is doing. So there is one story which is still going on, the modular building series. So many people like those big buildings. And they are out there since 12 years now. What do you think is special about this community that they still think, what is the next build? I still get excited when I see the new one. So what is the special thing about those modulars?
Yeah, I think there's obviously the collector part of it, that if you have many of them, you build them, you want the next one also. It's something we actually sometimes discuss. Can we continue to be so creative? creative that everybody still gets excited about the new building. And so far, so good, you can say, on that. So I think it's a combination of the two things. They are very nice builds. They are good for exhibiting. And then there is the collector part of it. And I think that can be true on buildings. Maybe one day, we can also get to a collector thing on some of the vehicles, the very big vehicles, where you can say, if you build the Porsche and you build the Bugatti, Is there something in the future you would also want to build?
I see, you would love to see more Technic vehicles in the future. Have you tried to build one of those modulars on your own?
No, not from the beginning. I've been part of it, so I haven't built it myself alone. That's, uh, that's, uh, I— if I had more time, I would build more things. I haven't.
Okay, so you have stuff to do, of course. Um, but when we talk about the series, I mean, there are many themes out there since many, many years, and we've seen recently some themes which, which are gone, like LEGO Elves, LEGO Nexo Knights, LEGO Dimensions is gone. So, and there are, I mean, stories out there, they haven't been so successful for LEGO. What have you learned of those? I mean, LEGO Elves was out there for 3 years, I think. It was fine. I mean, but now it's gone. So is there an opportunity for a new mini doll theme in the future, or do you think it's fine this way with the LEGO Friends figures, with the LEGO Princess figures? I ask for my daughters, you see.
Yeah, yeah, yeah. No, first of all, I think Behind your question is probably this. Is girls important? And girls are very important for us. And when I talk about adding more into innovation, a lot of that is going to go towards girls. Yeah. It's also clear, when we look at it, that girls are buying a lot of LEGO that doesn't have mini dolls in it. So if you go to the classic sets, the Creator sets, the Harry Potter sets, a lot of those are actually being built by girls. So we cannot just look at Friends and Elves and Disney Princesses as being the girls' portfolio. I think that's an important thing. Now, with Nexo Knights and Elves, they actually have been successful, but they were never thought of— when we introduced new themes, some of them were actually thought of being themes that live 2, 3, 4 years on purpose. And some of them, you can even say, probably Ninjago back then, may have been started like that, but just proved to become an evergreen. So I think it's a little bit— that's how we introduce them. And if they have that life, it is fine. So we see them as successful. And once in a while, we hit on something that is so fundamentally attractive that it stays for a long time. And Ninjago is a case of that. So what you should expect is that there will be themes coming in. They may live for that period. Then they go out, but they get replaced by something else. So that's how it is. And if some of those themes then catch on to really have long longevity, then they stay. I think that's it.
My daughter loves minifigures as well and playing with them in a city all the time. She's into mini dolls and minifigures, as a girl, of course. But there's something you mentioned which is very interesting. This is actually the LEGO house where we're standing right here. So this is not your office. There's going to be a new headquarters soon. And there's something special on the roof you just mentioned, which is interesting.
It's a LEGO brick.
Yes, not here right now. I mean, this LEGO brick, but the new headquarters. So because of energy.
And this is— Yeah, I was just— there's also something that looks like a LEGO brick that's just put there. That's going to be a big product showroom, by the way.
On the headquarters as well.
Yeah. So that was what I thought you were talking about. But of course, on the roof, we will bring up one of the biggest solar panel systems in the country, really making up for 50% of the energy in the entire building. And that goes along our planet promise that already now, we actually generate more energy or at least as much energy in the world ourselves than we actually consume in our factories and stores. and offices around. And this is another addition to that. So we're really keen also, of course, that serving kids and providing play experiences to kids, we also want to leave them a planet to inherit that really is a planet for the long term and have a positive impact altogether, not just adding to degradation.
And you also mentioned Plants by Plants, so the new thing which is out there. Which is great, but there are some concerns. So people say, oh, maybe the bricks won't be the same. What can you say to those people?
I can say the bricks will be exactly the same, and they perform just as well in all the tests, and they will be just as durable and have long— so it's exactly the same. And I think that's also why sometimes I'm asked, why are you not moving quicker on sustainable materials? We do not compromise at all on safety or on durability or on quality. So it'll be exactly the same. Nobody should be worried whether it's made out one or the other. Now, we are working really, really hard then to find the sustainable materials that live up to all those criteria. And that's not so easy. And that's why the journey is a 10-year journey. But when we bring something out, the quality is top-notch, and it's no difference.
And my last question would be for you. You are CEO since 1 year now. And when you think of what you've already done, is there anything you would love to do in the future, any theme, any So if you could just say, let's do this, you on your own as a person, what would your wish be?
Yeah, I think I'll keep that for myself.
Oh, secret. Yeah, but I think you're still taller than I am. Niels, thank you so much for your time.
No, my pleasure.
It was great to see you again, and it's really good to see that LEGO is out there and we all have fun with those great bricks.
Thank you for those kind words. Really good to see you.
