LEGO – Disruptive Technology In Retail Toy Industry

Written by: Admin ,

September 06, 2019


LEGO -Succeeds where many have Succumbed!

LEGO to Expand Stores

LEGO the privately owned Danish toy manufacturer & retailer has just announced its planning to open 160 stores globally with 140 of them being in China, competing against sophisticated & mature online retail platforms.

LEGO sales are UP

This comes after LEGO declared that sales rose by by 4% to (USD$2.8b). This bucks the trend , major toy retailers have been forced to close down in the recent months due to massive losses.

Mounting Losses in the Retail Toy Industry

Toys “R”Us North America’s largest retailer announced in March 2019 its closing all its stores after losing 2.5 billion since 2012.Disruption from online competition, expectation of millennial parents, children preference for digital toys & online games and less interest physical toys, and mistakes in business strategy finally forced them into bankruptcy.

Brick & Mortar Retailers Challenges

Physical retailers are faced with challenges from online platforms that offer large selections, convenience  at very competitive prices. Retailers have to reinvent by going online or changing the customers retail experience going beyond just product & prices.They need information on customer behavior in direct response to their store front.

Packed Shopping Malls With Limited Sales 

In Asia & Singapore in particular the malls are always packed but ,retailers & F&B outlets bemoan high rental rates & dropping sales .Much of promotions offered by the malls don’t provide direct leads to stores. They encourage more people into the mall but not necessarily convert them into customers.

Retailers Technology Challenges

Retailers are faced with the daunting task of  identify technologies that will work  best for them & keep up  with changing  technologies. They then have to apply the solutions, monitor its relevance and continue with the long term maintenance. There is also the initial investment cost which most retailers cant afford given their size of operations.This is addition to running their daily business operations in a very competitive environment.

IoTSolaris Retail Technology- SolarisRR                                   

Keenly aware of problems faced by  malls ,retailers & F&B outlets ,  IoTSolaris creates holistic solutions to increase in store visits, optimize space , offers unique retail experience that converts to more  customers & sales

Our SolarisRR suite ,accurately  measures footfalls, effective space utilization, staff & service performance, identify customer behavior, rate advertising value. The solution enables retailers to visualize  the interaction  between , space , advertising & customer service  in real time.  Retailers can tweak all factors to optimize customer experience & highest returns. The insight from derived from applying SolarisRR will be a valuable planing & strategic tool to the management. Our IoT consultants provide insights & knowledge to clients on how to maximize returns from  4th generation technology and  make it a living part of their business strategy.