Summary of Why Lego Is So Expensive | So Expensive | Business Insider

Summary

The video "Why Lego Is So Expensive" from Business Insider explores the evolution of Lego from a children's toy to a collector's item, detailing the factors that contribute to its high prices today. Key financial strategies, market analyses, and business trends highlighted in the video include:

Main Financial Strategies and Trends

Transition to collectibles: Lego sets have transformed into collector's items, with some costing more than high-end electronics like the iPhone 15.
Increased Set Complexity: The complexity and number of pieces in sets have significantly increased over the years, contributing to higher prices.
Targeting Adult Fans: Lego has shifted its focus to include adult fans, recognizing their importance as a customer base, leading to the release of more complex and higher-priced sets.
Licensing and Pop Culture: The introduction of licensed sets (e.g., Star Wars) has proven to be a lucrative strategy, attracting fans of those franchises who may not have been traditional Lego customers.
Resale Market Dynamics: The retirement of sets creates artificial scarcity, driving up resale values, making Lego a viable investment for collectors.
Grassroots Collaboration: Lego has engaged with its adult fan community to inspire new products and improve existing ones.

Methodology/Step-by-Step Guide

Identifying Key Turning Points:
- 1949: Shift to plastic bricks.
- 1955: Introduction of themed sets.
- 1970s: Expansion of creative sets and introduction of the mini-figure.
- 1990s: Struggles with profitability and the need to refocus on core products.
- 2000s: Embracing adult fans and community engagement.
- 2004: New CEO shifts strategy to focus on adult fans and product complexity.
- 2019: Acquisition of Bricklink to enhance the resale market.
Analyzing Price Trends:
- Comparison of price per piece over decades to assess value.
- Examination of set complexity and average prices since 2014.
Understanding the Community Impact:
- Recognition of the role of conventions and online communities in fostering a passionate fanbase.

Presenters/Sources

The video features insights from various Lego enthusiasts, including collectors and fans, and references historical data from Lego's corporate history.

Notable Quotes

— 07:48 — « It's not really about like how much you have, it's about ingenuity. It's about trying to find different ways to solve problems. »

— 27:02 — « I don't think we're ever going to see a fandom for Lego die in the way that we might for a media text which waxes and wanes over time. »