1D Relevant consumer and customer trends, expectations and behaviours
Consumer Trends
From advances in technology and increased forms of entertainment, changes in the behaviour of kids and adults have been reflected in the type of toys that are made today.
Increased Use of Technology
There has been an increase in the use of technology among young children: the percentage of kids under 2 years old who use tablets or smartphones increased from 10% to 38% from 2011 to 2012 (Media, 2013). In addition, the amount of time spent on these devices has tripled while time spent on traditional devices such as TVs has decreased by half an hour a day due to children having more regular access to these devices. Lego must find new ways to integrate virtual and physical play.
Euromonitor, 2019
Redefining Play
Due to the pandemic, working from home and time spent by children at home increased drastically. As a result, there is a growing demand by parents for engaging educational toys, and this trend is expected to continue even as pandemic restrictions ease (Hutchins, 2020; Kestenbaum, 2021) and the educational toy market has a projected CAGR (revenue growth rate) of 5.1% from 2021 to 2030 (Business Wire, 2022). To meet this demand for educational toys, Lego has come up with Lego education, “an intuitive, inclusive, and highly adaptable hands-on learning system.” (Lego)
Subscription Models
For consumers, subscriptions offer cheaper prices and more convenience (Barseghian, 2019). Fueled by the pandemic, spending on subscription boxes has increased drastically from 2019, with year-on-year spend increasing by 50% from 2019 to 2020 (Barclaycard, 2020). After the lockdown, subscription services are still growing in popularity as consumers have grown accustomed to the personalised offerings and convenience and now expect these services from companies (Paige, 2021). Lego has not yet launched a subscription type service, but toy companies like KiwiCo that do so have drastically increased in popularity.
References
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Barclaycard, 2020. Lockdown fuels 'subscription society' as Brits spend £552 a year on sign-up services. Barclaycard. Available at: https://home.barclaycard/press-releases/2020/8/Lockdown-fuels-Subscription-Society/ [Accessed March 7, 2022].
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Barseghian, A., 2019. Council post: What's behind the rise of the Subscription Model? Forbes. Available at: https://www.forbes.com/sites/forbestechcouncil/2019/08/12/whats-behind-the-rise-of-the-subscription-model/?sh=4ca1078535c3 [Accessed March 7, 2022].
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Business Wire, 2022. Global learning and educational toys market (2021 to 2030) - opportunity analysis and industry forecasts - researchandmarkets.com. Business Wire. Available at: https://www.businesswire.com/news/home/20220121005252/en/Global-Learning-and-Educational-Toys-Market-2021-to-2030---Opportunity-Analysis-and-Industry-Forecasts---ResearchAndMarkets.com#:~:text=The%20global%20learning%20and%20educational,growth%20and%20development%20of%20children [Accessed March 7, 2022].
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Euromonitor, 2019. Lego in toys and games. Euromonitor. Available at: https://www.euromonitor.com/lego-in-toys-and-games/report [Accessed March 7, 2022].
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Hutchins, R., 2020. Surge in demand for STEM toys and science kits 'will continue well into 2021' says Thames & Kosmos. ToyNews. Available at: https://www.toynews-online.biz/2020/11/20/surge-in-demand-for-stem-toys-and-science-kits-will-continue-well-into-2021-says-thames-kosmos/ [Accessed March 7, 2022].
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Lego, Classroom solutions for STEM and steam. LEGO® Education. Available at: https://education.lego.com/en-gb/ [Accessed March 7, 2022].
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Media, C.S., 2013. Eight to Zero Children's Media Use in America 2013. Available at: chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/viewer.html?pdfurl=http%3A%2F%2Fwww.commonsensemedia.org%2Fsites%2Fdefault%2Ffiles%2Fresearch%2Fzero-to-eight-2013.pdf&clen=956185&chunk=true [Accessed March 7, 2022].
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Paige, J., 2021. How retailers can win loyalty from 'convenience-driven' consumers. Retail Insight Network. Available at: https://www.retail-insight-network.com/analysis/how-retailers-can-win-loyalty-from-convenience-driven-consumers/ [Accessed March 7, 2022].
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Toy Industry Association, 2022. Toy & Play Trends. The Toy Association. Available at: https://www.toyassociation.org/toys/research-and-data/reports/trend-spotting.aspx?WebsiteKey=9627b778-d394-4eb1-93ca-b0ecde8e3359&hkey=d4a13ea2-d774-48ea-b4a3-4bfdbdd14a0f&FTP_Menu=2#FTP_Menu [Accessed March 7, 2022].