Hi guys,
As you can imagine, I am getting bombarded with 2008 questions now that the first sets have appeared in Anaheim. I did release a mask name and power this week, and will do more next week.
However, I'm not going to just hand out the entire first half 2008 info on December 7th, and leave us with nothing to discuss between now and next July. I am not going to embargo all info on '08, but I am going to portion it out so that it lasts. Okay?
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In other news, we had a company meeting yesterday to discuss our year-end results -- while final numbers will not come out until early next year, it looks like we had another fantastic year worldwide, despite the toy market being stagnant as a whole. It's a really remarkable turn-around considering the hole we were in a few years ago. A lot of this has to do with our management team, who have set a really clear direction for the company and been willing to make some tough decisions and dispense with some "sacred cows." And the early read from the market is that our products for next year are some of the strongest we have done in years.
BIONICLE had an okay year, but could have been better. We have some challenges we have to face -- getting away from clone sets means the cost of producing the sets has gone up, due to all the new molds, etc., and that cuts into profitability. And, while we are still strong among 9+ year olds, we have work to do introducing BIONICLE to the 6-8 year olds who will keep the franchise going into the future. That is something Scholastic will be helping with, which I will tell you about later on.
On the plus side, when kids were asked the top 10 franchises they would like to get a toy from, only three of their 2006 choices were still on the list in 2007, and BIONICLE was one of the three.
So now we focus on these critical next three weeks, as we go into the Christmas toy-buying season, and then we get ready to take that momentum into 2008 and make it another great year!
Greg
News And Notes, 12/7
Posted by GregF on
Glad to hear BIONICLE is doing good on the market, I hope the early read is right and LEGO will come in strong in 2008. If the 2008 sets come out later in December, you can be sure I'll buy my share!
~
And that your products of next year are great, it's something that you guys have been able to see in BZP for months
Let's hope BIONICLE will do good next year. I know I'll do my best to help it along.
Since the winter sets are appearing places now, I can start discussing them -- like I said, I just want to ration the info, because there are no comics or books until March next year and I don't want you guys bored the whole first quarter of 2008.
Greg
~CN
piraka slayer
At the same time, the books were being shelved in the same way in 2004 and 2005 when they sold like crazy. Book sales are being affected more by a lack of awareness about BIONICLE than anything else.
Greg
~ Bioran
And that Bionicle is going strong.
-CF
Another big news item this year has been the continued success of the LEGO retail stores. I'll admit, when we first opened stores, I had my doubts they would work -- but the Brand Retail team we have in place really did a great job. Revenues jumped way over last year's, which were already a big jump over 2005. So the predictions voiced in some quarters of BZP that you would be seeing cascading store closings proved to be wrong, thankfully
Do we face challenges? Yes, the same ones pretty much every other toy company does in 2008 -- high oil prices, the credit crunch, and the weak dollar. Fortunately, LEGO Company's history is that we ride through tough economic times pretty well, so hopefully that trend will continue.
Interestingly, one of our top lines this year, along with Star Wars, was LEGO City -- which makes me think you may be seeing a backlash against all the electronic items and video games, etc., and maybe some parents turning back to really traditional toys for their kids. Outside of Creator, City is the most classic LEGO series we have.
Greg
Personally, I'm not into City, but looking at the sets I do think they were spiffy this year, so good job. There was a big variety of items at a range of prices. The dump truck and the cement mixer were new ideas that I thought were clever and different from the same old of firetrucks and helicopters.
Ooh, Creator. Great way to get tons of pieces at a small price. (and this year there was the Mosaic sets!)
Hmm, KUTGW?
-CF
Mars Mission did very well among LEGO Club members, as did Castle, I don't know its sales overall.
The great thing about City and Creator is that they are good "intro products" -- often, they get bought for younger kids and become a way to get them into LEGO building. We find if kids get into this at a young age, they are more likely to stick with it as they get older.
Greg