Thread by @max_eyr

.@Nicolas_Colin strikes yet again with a new addition to his "11 Notes on..." series.

This time it's about @LEGO_Group, and it's amazing: europeanstraits.substack.com/p/11-notes-on-…

A few take-aways + thoughts 👇

This new piece stems from Nicolas's research to prepare for a trip he took with his son to Copenhagen and Billund, "the birthplace of Lego bricks."

But it's also a perfect companion to the company's newest ad, released just yesterday

https://twitter.com/Adweek/status/1229886999437422594

Lego's resilience is the result, and the embodiment, of its core product, the brick.

Making the brick the basic unit of its system was the company's real turning point in its early days, and its salvation when business went astray in the 90's.

Thanks to "The Brick," the entire "Lego System" is built for inter-operability:
1. over time => durable, transgenerational toys
2. across kits => the ability to mix-and-match fosters creativity, and repeat purchases
3. across aesthetics => collaborative play

What this means is, "Lego is like software—something that you can write once, and then run everywhere." Similar to McDonald's or Walmart, its success doesn't depend on specific location, people, or technology. It can scale across geographies and culture - and it has!

Relying on this core unit of "The Brick" means the Lego System is immensely adaptable. It can be :
1. different things to different people
2. different things to a single person

Lego bricks are enablers - the magic happens in the individual's mind and hands

Still, there's "stages": "The first is to follow the instructions and to practice under strict guidance so as to acquire a strong technique. And then the next stage is about unleashing imagination and discovering your own style."

Playing Lego is about freedom and empowerment

Side note: It's one key reason why people love the brand and product so much. Not just because they've played it as kids - but because they see it as enabling agency for their own kids, too

At at time when screen passivity is striking fear into every parent's heart, the Lego system is a guilt-free staple of creative play that adults have every reason to encourage

Because it's so open-ended, the product has lent itself well to content partnerships with prominent brands - Harry Potter, Star Wars, and many others -, something Nicolas aptly calls "the “Avengers strategy”

This strategy is alive and well. Lego makes sure to constantly partner with new franchises and interests in order to keep up with the times

Sometimes, this also means tweaking the Lego aesthetics to adapt to that of its partners, e.g. Marvel or Minecraft

In recent years however, Lego has capitalized on its own intellectual property to generate compelling content across formats, and most notably in theaters with the LEGO Movie franchise.

This gives them better control over release timing and, most importantly, narratives

Another benefit of spreading love for Lego itself rather than partner brands? Money! 💰

Partner brands are costly. Disney charges Hasbro 20%-25% royalty rates to license its Star Wars and Marvel properties. Hasbro’s royalty payments accounted for 8% of its revenue in 1Q19!

Beyond big-budget content, on which Lego maintains strong creative control (see Ben Fritz's The Big Picture), there's user-generated content - a lot of it

"Lego’s strength in the Entrepreneurial Age," Nicolas notes "is an engaged community of networked individuals"

Lego "has partially turned into a platform" - albeit not a tech-y one - and opened itself to its community.

No longer are individuals just creating in the secret of their homes; they're sharing their creations, taking part in challenges, collectively pushing the limits of play

In that regard, Lego's network of stores is likely to play an increasingly bigger role, fostering discovery, creativity, and togetherness. Lego stores by design are visual and commercial incarnations of the brand's values

Just look at their "Pick a Brick" Wall!

Overall, Lego is in a great place: it has a brand loved the world over; an enduring product; a foothold in culture through intellectual property; it's in the business of play, one that's not likely to disappear anytime soon; and it's forward-looking, learning from its community

I'm curious to see where it goes next, especially in terms of integrating more tech into its product. It's already experimenting with augmented reality, for instance.

techcrunch.com/2019/02/14/leg…

How does Lego adapt to a digital-first world? Can it do so without hurting The Brick?

To conclude, I highly recommend reading Nicolas's piece: europeanstraits.substack.com/p/11-notes-on-…

I know I'll be diving deeper into his reading list as well!

/end