one of the world’s most populous countries, with a quarter of the population being children, and has the fastest growing economies. We have built a strong foundation here over the past decade.” Lego created the IEA business unit to capture the opportunity in markets like Indonesia, which it sees as being key to its growth strategy. “The new organisational structure will help unlock and accelerate growth with dedicated resources, and continuous innovation to enhance our ongoing relationships with partners,” Kristensen said. Building on Indonesia’s foundation Spanning 356sqm, the Senayan City Mall store in Jakarta is one of six new Lego locations slated to open in Indonesia this year, bringing the brand’s network of stores in this market to 26 by the end of this year. The store also marks Lego’s fourth largest store in the Asia Pacific and is home to Southeast Asia’s first Lego Minifigure Factory. To establish a stronger presence in the region, Kristensen said the company has been investing in expanding its network of stores in the region, opening a regional service office, while working closely with local partners to enhance brand experiences. “We are also engaging with our local fans by celebrating the uniqueness of the market,” he added. “In our latest Lego Certified Store in Indonesia, we have captured the vibrant culture and impressive architecture of the city in Lego brick form. We have recreated some of the city’s most iconic landmarks in Lego bricks, such as the National Monument and Jakarta Bus, as well as a 3-metre-tall mosaic of the historical Selemat Datang Monument.” Retail stores centred around brand experience Kristensen stressed the importance of immersive retail experiences: “We aim to offer memorable, unique brand experiences, which we know play a key role in building brand love and helping people discover our full portfolio of products.. “Creating great in-store experiences allows us to reach more children and fans, and build lasting connections with them through play, events, unique store displays, and world-class service. When people can physically interact with Lego products and see the limitless possibilities of what they can create, it sparks their imagination and reinforces the joy of building. “We hope our Lego stores will be a fun space for fans to get hands-on with the bricks, inspire their creativity, and foster more creative play,” he concluded. Booming Asia market with cultural challenges Expert Market Research reveals that the Asia Pacific toys market reached approximately US$56.6 billion last year. The market is anticipated to grow at a 5 per cent compound annual growth rate (CAGR) between 2024 and 2032, reaching a value of US$87.8 billion by 2032. “The toy market in Asia has been growing mainly driven by a growing population and an increasing disposable income,” said Frederique Tutt, global advisor for toys at Circana. She added that despite the pandemic causing some setbacks, the Asian toy market’s future looks promising. This is particularly true as parents, especially younger ones, are opting for fewer but higher-quality toys with more educational elements. However, Tutt mentioned that the main challenge Western toy brands face when entering Asia is their higher pricing. “Children received the equivalent of $34 worth of toys in Asia in 2023,” she added. “This spend per child in Asia is 11 times smaller compared to what children receive in North America and 6.5 times less than in Europe,” she said. “That being said, we are noticing that premiumisation is also a trend in many countries in Asia. This represents a fabulous opportunity for Western brands looking to expand beyond the large developed countries. Some Western brands are seen by the Asian consumer as truly aspirational,” Tutt concluded. Meanwhile, Samuel Yan, manager for Circana Toys China, said Asian consumers, especially Chinese parents, are extremely focused on educational aspects. “In Asia, the focus is not so much on play, but more on school work, achievements and education. As a result, popular categories here include electronic learning toys, scientific toys and building sets whereas in Western countries dolls or plush toys tend to do better,” Yan explained. “Last but not least, IP matters. In many Asian countries, the penetration of licensed toys is still low compared to Western countries and usually licensed toys perform better compared to non-licensed ones. With the complete lift of Covid restrictions in Asian countries like China, the movie industry saw an incredible recovery and therefore, helped to boost sales of licensed toys. We would expect this trend to accelerate in the next few years,” Yan added.