Moreover, one of the group’s partners last autumn opened the first Lego exclusive store in Romania and the second opening of such a unit is scheduled for this year, in Cluj.
Lego is thus battling international giants, Asian “no-name” toy makers, as well as Romanian producers for a growing slice of the traditional toy and games market valued at around EUR120 million.
Lego opened its own subsidiary in Romania in 2012, after having previously supplied the stores in Romania, for two decades, through a distributor.
In 2012, the first complete operational year, Lego Romania derived revenue of 27 million lei (EUR6 million), with a team of just nine employees. In 2013, the company posted two-digit revenue growth and it reached around 20 employees.
“Lego group ended 2013 with 10% revenue growth on the year. Lego Romania ended the year with growth above the group’s average, strengthening its position of top competitor on the toy market,” says Claudia Gantu, associate marketing manager for Romania and Bulgaria at Lego.
At the first official conference Lego organized in Romania, the company’s officials said sales growth will revolve around 30% per annum, meaning 2013 revenue neared EUR8 million.
As regards this year’s financial figures, Claudia Gantu does not come up with forecasts, but says that the launch of “The Lego Movie” had a positive impact over sales in Romania.
The Danish company started recruiting the team of Romania in 2011 and the subsidiary of Romania started operating one year later in Bucharest. Today, the company’s products are sold in around 200 stores.
Claudia Gantu does not specify the contribution of the Bucharest specialized store to the company’s revenue, saying it is too early to do this as the store has been opened for less than a year. However, she adds Lego Romania plans to open a second exclusive store in Polus Mall Cluj, in collaboration with the same partner. “The sales area will be 25% bigger than in Bucharest”.
According to the latest ZF data, Lego group manufactures its toys in five locations in the world. Lego representatives previously said the group was not mulling opening a production unit in Romania.
The Romanian games and toys market is seen as having the highest growth potential in Eastern Europe, according with Euromonitor. Access to high education, the improving living standards and the new technology will make consumers spend more on toys and games in the future.
(English version by Catalina Apostoiu)