Lego's Business and Marketing

My daughter will turn four soon. I was waiting for this time for the past four years, because I would be able to buy her a Lego model.


I was first exposed to Lego thanks to a very kind family friend who gifted a Lego Set to me. My first Lego set was: Lego Bus Station (Model 379), and it was released in 1979. I was reminded of those days all over again today.





Today, I bought my daughter's first Lego set. It is the Ultimate LEGO Building Set (6166). Here's the picture, on the right. We had great fun, and I was transported in time.


So, I went back to the local Lego Store, to get more bricks. And that's where a bunch of things struck me. I was looking for a large brick box. "Sorry", I was told, "we don't carry those". "We can order from the Lego online store and ship it", they said. "That works", I thought to myself.

Except the model I was looking for, was from LegoEducation.com. "Oops, we can't go to that website, from our store". "What?? You are Lego, and that is Lego too... what's going on?" I spent $71 at the store, nevertheless.


There was a gift waiting for me at the cashier's counter. "Because you spent more than $50, here is a Bionicle..." Okay, but I don't want a Bionicle. I don't like the look of those things, honestly. But, if you truly like the fact that I spent over $50, can I get something else in it's place? Nopes, tough luck. I said fine, Bionicle it is. (really, how much better a customer experience would it have been, if they said: you can add $x more worth stuff, because you spent $50... your choice. Now, that would have been delightful.)

Anyway, I went looking at the Lego's website to order the large brick box I wanted online. More weirdness. "Limit to 5". "Stock unavailable". Are they really trying to reduce supply? What's going on here? Are these beanie babies? They are bricks afterall.

Finally, I went to http://www.craigslist.com/. There was a local dude that was selling over 5,000 pieces from his collection, for around $75. So much for "limit to 5".

Lego, you've lost a customer. For me, it is craigslist from now on.

China's Trade Barriers?

I saw the recent news that the US is complaining to the WTO about China's trade practices. Alngside the very same news item was this news item. A high-level business delegation from China was visiting the US to conduct deals worth tens of billions of dollars (as the New York Times puts it: a Spending Spree).

Coincidence? I don't know.

On its face value, the Chinese seem to have mastered the art of playing US against the US. On Capitol Hill, I am sure there a bunch of lobbyists engaged by US businesses trying to complain/erect more trade barriers against China. And there should be an equal bunch of lobbyists engaged other US businesses to ensure the US gets these lucrative business deals instead of any other country.

Who wins? I think politicos do, in the short term. In the long term, as long as the world economy shifts away from Western nations to Asian nations, we will see more and more of this happening. The real money and growth is in Asia. Complain and erect barriers to protect local businesses is good -- but it shouldn't be at the cost of losing access to lucrative and growing markets elsewhere.

And the Chinese know this. Very soon, the Indian will get a copy of this playbook as well. It would be interesting how the drama weaves.

(Speaking of drama, is this just a drama? What if China and the US have already planned on doing these business deals all along? And both knew a PR campaign to divert attention & shield the public outcry as these deals get done -- will help? If that is the case, a well timed "US is not happy with China's trade policies, and the US is complaining. Your government is on your side and is at work" makes good sense to the US locals. On the other hand, China can go back to their country and say "Complaints, schomplaints... Whatever... See, we got the deals we wanted anyway, so be happy, China. Your government is on your side and is at work.")