Lego designs expansion, despite concerns about inflation

Despite the uncertainties surrounding the Brazilian economy, the Danish toy manufacturer Lego is not a pullback in business. The company provides 30% high in sales, after closing with a 2013 growth record of 61% in the domestic market.
"Our growth target for 2014 is daring in the face of current economic scenario. This is an atypical year. We don't know what will be the impact of the World Cup at retail and elections can also interfere with sales of consumer goods. So, we're getting ready from the outset to reach the goal, "says the Chief Operating Officer of Lego in Brazil, Michelle Edwards, in an interview with DCI.
With an expansion strategy anchored in the releases-about 80% of the product line was renewed for this year-and the contributions in advertising-with focus on commercials broadcast on cable TV-specific the company intends to maintain the good results. "We have reduced our investment because we believe that retreat or invest less damaging means business", says the Director of Lego.
Inflation and exchange rate variations are also monitored closely by multinational, therefore interfere directly in their results, he said. "Inflation affects any business and it ends up being a sign of consumer also retraction", explains the Executive. "Our second concern is linked to the dollar. Because we are a toy imported, we are all the time depending on the dollar, "adds Michelle Edwards.
Last year, the currency appreciation has forced the company to adjust their prices. "We made a readjustment in August 2013, but we went through only half the high of the dollar. The advancement of 15% recorded for the currency, with peaks of up to 25%, we pass only 7% ", completes the Lego Executive in Brazil.
The national market of toys grew 12 percent last year before 2012, totaling R $ 4.45 billion. In retail, the amount reached r $ 8.4 billion, according to official information of the Brazilian Association of toy manufacturers (Abrinq). For this year, the organization projects a 10% increase in revenue, totaling r $ 5.25 billion.
Transition In 2014, the Lego of Brazil will also feature an important change. From the middle of the year, the national market is being fueled by the factory of the company located in Mexico. Until that time, the pieces sold in the country coming from the unit of Denmark. "The Mexico factory was able to meet the market of the United States and Canada. Now, rescheduled, she has provided in the answer too, "explains.
The change should, according to Edwards, decrease the delivery time of the toys. "Is there an advantage logistics, because the delivery process will be facilitated. I estimate the gain in number of days, but surely there will be a reduction, "he said. According to the Executive, although produced in Mexico, the parts will come from the Lego United States distribution center.
Last year, Lego's global sales reached $ 4.7 billion compared with $ 4.1 billion in 2012. According to the multinational, this advance has kept the brand in second position among the largest toy makers in the world.