3 days ago
From Hokusai's Great Wave, shinkansen to One Piece: a cultural treasure box for Lego Japan
A miniature collection of Japan's cultural treasures and icons are on display in an airy Akasaka office, meticulously rendered via interlocking blocks. Katsushika Hokusai's Great Wave and Himeji Castle sit across from the shinkansen and the Tokyo Skytree while bonsai protrude around Tokyo Station, watched over by Mount Fuji.
The icons are slightly more cubic than usual — but instantly recognizable.
This is the expansive world of Lego Japan, overseen by general manager Michael Ebbesen, who even has a business card in a miniature Lego figure of his likeness.
'We are lucky that Japanese culture has such a rich global appeal,' Ebbesen said during an interview at the company's Japan headquarters in Tokyo. 'Such products are sellable around the world.'
The Lego world is constantly expanding to encompass a growing number of collaborations. Nintendo's Animal Crossing series is one of them. But a recently announced One Piece Lego set, which is slated to hit the shelves on Aug. 1, is something the company has high expectations for.
The constant release of hundreds of products each year gives Lego almost endless growth potential, explained Paul Winslow, a partner at Sakura Toy Solutions, a Japan-focused toy market consultancy.
'It's not a toy that you repeat. It's a consumable. This creates this tremendous purchase frequency, and need for this broader range, the sales could almost be infinite, in a way,' Winslow said.
Lego was founded in 1932 in Denmark and operates as a private company. It takes its name from the Danish phrase leg godt, which translates as 'play well,' and states its mission as aiming to 'inspire and develop the builders of tomorrow.'
In Japan, Lego's presence is well established. The company entered the market in 1978 and now has 40 retail stores nationwide. It also sells at Toys R Us and online, and even has a theme park in Nagoya — Legoland Japan.
As well as longevity in the market, Winslow said Lego was associated with quality — an attribute prized by Japanese shoppers.
With no language used in its building instructions, Lego doesn't need to localize its products, which makes globalization easier for the company.
'It's a big picture of the item,' Winslow said.
John Bancroft, another partner at Sakura Toy Solutions, said Japan remains attractive as the third largest toy market in the world.
'There's a big pot of gold there, but the barriers are so high,' Bancroft said, explaining that the market is highly relationship-driven and requires a nuanced understanding to navigate. But brands that are able to negotiate the challenges benefit, rewarded by consumers that place a premium on quality, as well as innovative and inspiring products.
For Lego, there is still plenty of room for growth in Japan, but the declining birth rate is undeniably a challenge.
Each year, the number of target toy consumers in Japan drops — the estimated number of children in Japan under the age of 15 fell to a record 13.66 million as of April 1, down from 15.95 million in 2020. It's been dropping around 400,000 to 500,000 each year.
'Even with the falling birth population, we see a lot of opportunity to expand,' Ebbesen said, noting that there were still many children in Japan that don't play with Lego bricks and the market remained significant in size.
But at the same time, plans to tap into the adult market — often described as the 'kidults' (a segment which encompasses teens and adults) — are also well and truly under way in Japan and globally.
The most recently released data from the Japan Toy Association found that the country's toy market grew 7.1% in fiscal 2023, topping ¥1 trillion for the first time, with products that targeted the kidult segment a 'major factor' in the growth.
In 2020, Lego added an 18+ age category, releasing intricate sets with thousands of pieces that are designed to be displayed under its 'Lego Icons' range. Among these are sets from animations and films like 'The Simpsons,' 'Star Wars' and 'Lord of the Rings,' as well as artworks and architectural models.
These sets retail at a higher price point — A Lego Lord of the Rings Rivendale set costs ¥69,980 ($499.99), while an almost 5-foot (149 cm) Eiffel Tower retails for ¥87,980 ($629.99).
'Adults are a very much growing category for us globally, as well as here in Japan. The adult business is definitely a big opportunity for us,' Ebbesen said.
'Many people now use Lego bricks and models as decoration in their houses. You can build that together with your spouse or girlfriend or boyfriend or daughter or son, so we also see this as a social aspect,' he said.
Toy analysts have found nostalgia to be a key driver for the valuable, rapidly growing 'kidult' market globally.
'In a time of economic uncertainty, nostalgic products provide consumers with an emotional connection, offering both escapism and comfort ... brands are focusing on exclusive collectibles, premium nostalgia-driven products, and limited-edition collaborations to attract and retain these consumers,' Euromonitor International analyst Isam Arshad wrote in a March report, adding that in 2025, kidults are expected to remain a growth engine.
In March, Lego Group released its annual 2024 results, reporting that revenue had grown 13%, outpacing the toy market. Its 2024 portfolio was the group's largest ever, with 840 products. The bestselling themes included its kidult-focused 'Lego Icons' range.
The evolution of the market will continue to drive new collaborations in the future — both in Japan and globally. While adults will play a large role in this, children are still a core part of the group's mission.
Ebbesen, who has known the brand since childhood himself, viewed the product as an important conduit for tactile play and creativity for the next generation.
'Our mission is to inspire and develop the builders of tomorrow. I think that most people working at the Lego Group are very proud of that,' he said, describing the importance of developing many essential skills such as coordination and creativity, as well as social skills.
'Creativity and imagination are just so crucial, so that is, of course, a very compelling mission to work for every day,' he said.
