Overly high toy demand has caused a Lego shortage as Christmas approaches, it has recently been revealed.
It appears that the Danish toy company has experienced a boom in sales ever since “The Lego Movie” was released in 2014. Another initiative that was proven successful in recent years was the unveiling of Lego Friends, a pastel-colored line of building sets catered to girls.
While sales growth was estimated at 15% in the year 2014, in the first semester of 2015 revenue from sales has experienced an 18% increase.
Lately, because of the brand’s renewed popularity, numerous online purchases have been made in preparation for the winter holidays, and the manufacturer can barely cope with this staggering demand for its iconic brick toys.
“We will not be able to deliver all of the new orders coming from customers in the remainder of the year in some markets in Europe”, announced Lego spokesperson Roar Trangbaek.
For now, a complete list of the countries that have will be affected by this depletion of stock hasn’t been provided. Nonetheless, it appears even kids from the company’s native Denmark will no longer get to receive their much-anticipated Lego gifts.
On the other hand, company officials insist that the American market will not be suffer from a shortage in colorful brick toys during the Christmas shopping season.
As they explain, while this reduction in product reserves was sensationalized into a global problem, it appears that the only nations that will be affected are located in Europe.
Lego has been taking steps lately in order to cope better with this heightened demand from customers, so that it can continue to compete efficiently with rivals Hasbro Inc. and Mattel Inc.
According to John Goodwin, Lego chief financial officer, the company’s factories have been under great strain due to increased production, and they are now functioning at maximum capacity.
There are currently just 3 Lego facilities which manufacture the popular building bricks across Europe: one in Hungary, another one in Denmark and the third in the Czech Republic.
As a result, company officials have decided that they would expand three of their plants, built in Mexico, Denmark and Hungary, in order to streamline and expedite production.
For example, in Monterrey Mexico, Lego will hire an additional 3,000 workers, and it is expected that expansion investments will eventually total more than a hundred million euros.
In Hungary, initial plans predict adding 150 new employees on the payroll, but if sales continue to boom a total number of 1,600 people might eventually be taken on.
Moreover, the thriving company also has plans to establish a firmer foothold in the Asian market, by building a new Lego toy factory in China.
However, the difficulty in meeting the growing number of purchases may continue until 2020, when the expanded factories will become fully operational.
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