Homeman
Go Home

Press Info

LEGO logo

Major effort in Asia by the LEGO Group
- organisational changes and market restructuring to begin in 1997

The LEGO Group aims to treble its sales in Asia - one of the world's major growth regions - during the next 10 years.

To achieve this goal, LEGO Overseas A/S's organisational structure is to be fundamentally revised. A small management and coordination company, LEGO Asia Ltd., is to be established. Based in Singapore and reporting direct to LEGO A/S in Billund, this company will supervise activities in the LEGO Group's Asian region, which stretches from Pakistan in the west to China in the east and which also in cludes Australia and New Zealand to the south.

Japan, the world's second largest market for toys, will not be affected by the changes. LEGO Japan Ltd. will continue to report directly to LEGO A/S in Billund.

Market-adjusted products - and new companies

From now on, there is to be a much more targeted investment of effort in these many very promising markets. The strategy will include market-adjusted products for the Asian region. In the first instance, there will be 20 new sets composed from existing elements in the large international range and with special packaging and communication materials.

"Together with our current partners, we shall be investigating the opportunities for establishing new independent sales companies and/or regional offices in, for example, Hong Kong, China, Taiwan and Malaysia," says Poul Ernst Rasmussen, who is to be LEGO Asia Ltd.'s president, after five years as president of LEGO Overseas A/S in Billund. The six people in LEGO Asia Ltd.'s senior management team will move from Denmark to Asia during the first quarter of 1997. They will be supported in their day-to-day work by a new market-contact function located in Billund.

- and more overseas postings from Denmark

In addition, the existing LEGO sales companies and the Asian region's distributor network will be reinforced by further postings from Denmark. This programme includes eight employees who will, from 1997, be working close to the market rather than in Billund. The sales companies concerned are those in Australia, New Zealand, Singapore, Korea and South Africa, which remains in this part of the LEGO organisation for historical and operational reasons. The distributors in India, Taiwan, Thailand and Malaysia are also covered by the programme.

"This complete reorganisation of the former LEGO Overseas area should be seen as a dynamic realisation of our wish globally to be as close to endconsumers and the market as possible," says Kjeld Kirk Kristiansen, President and CEO of LEGO A/S, the LEGO Group's international management company.

"Apart from the sharp focus on the Asian region," he continues, "the coming changes will also result in the transfer on 1st January 1997 of marketing in Latin America to LEGO Systems, Inc. in the USA, which already has responsibility for the American, Canadian and Mexican markets. Danish employees will also be appointed to certain key positions in this region. Coordination of sales to the Middle East, Africa (excluding South Africa) and certain tax-free customers will be transferred - also on 1st January 1997 - to LEGO Trading A/S in Billund, which is currently responsible for eastern Europe and the countries of the former Soviet Union, also a region in rapid growth."

As an organisational result of the move to Asia, LEGO Overseas A/S's financial, computing and personnel functions will be transferred to the central services organisation soon to be established in Billund. The logistics function will move to the Supply Chain organisation that is currently being set up, also in Billund. In addition, there will be a reduction of around 20 salaried-staff positions during the first half of 1997.

Great faith in the future

"Starting in January 1997, with our small, flexible and effective organisation, we shall be well placed to meet the big challenges of the next 10 years in this dynamic part of the world," adds Poul Ernst Rasmussen. "After the turn of the century, we may also establish a LEGOLAND Park and we shall be investing in LEGO Licensing activities. We have the strength of the LEGO Group behind us and we have the right staff in our new flat, forward-looking organisation. We therefore have great faith in the LEGO product's future in Asia.

© 1996 The LEGO Group
TM and ® Trademarks of the LEGO Group
Page updated November 14, 1996.
Arrow
Go to top
man Home
Go Home