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Is LEGO Ideas a
good role model
for crowdsourcing
in the toy industry?
21108 LEGO Ideas Ghostbusters set photo by Brickset...
LEGO Ideas, the pioneer
• Launched as LEGO Cuusoo in Japan in 2008
(collaboration between LEGO and Cuusoo)
• International...
The basics of LEGO Ideas
• Age limit 13
• Each project is one new LEGO set, can use existing IP
• Submitted projects need ...
Flow or no flow
10,000 supporters
Review period cut-off
Review
Results
Set in stores
4 months
4 months
2-8 months
Up to
4 ...
Rejected projects
• The majority of supported projects do not get made into LEGO sets!
• 2013: 3 approved, 11 rejected
• 2...
Does LEGO have the production agility needed?
• Extremely long lead times (and according to LEGO, the lead times for Ideas...
LEGO Ideas, the niche product
• LEGO has demonstrated neither belief in nor commitment to
crowdsourcing
• Ideas, as it sta...
Improvement potential exists
• Lower the age limit, serve both AFOLs and the core market
(COPPA child protection rules do ...
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Is LEGO Ideas a good role model for crowdsourcing in the toy industry?

LEGO Ideas has been a pioneer of crowdsourcing in the toy industry. Is it still at the top? Is it doing things right?

A video of the presentation is available on Youtube at https://youtu.be/HhYIzN8u_bM

The presentation is based on my blog post "Crowdsourcing in the toy industry: LEGO Ideas" http://www.kilkku.com/blog/2015/07/crowdsourcing-in-the-toy-industry-lego-ideas/

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Is LEGO Ideas a good role model for crowdsourcing in the toy industry?

  1. 1. Is LEGO Ideas a good role model for crowdsourcing in the toy industry? 21108 LEGO Ideas Ghostbusters set photo by Brickset @ Flickr (CC) https://flic.kr/p/neLaRN 2 cents //Ville Kilkku
  2. 2. LEGO Ideas, the pioneer • Launched as LEGO Cuusoo in Japan in 2008 (collaboration between LEGO and Cuusoo) • International launch in 2011 • Wholly run by LEGO in 2014 • More than 10,000 proposals from the crowd • 12 LEGO sets announced for international release • Compare to competition: Hasbro and Mattel took their first steps in crowdsourcing in 2014
  3. 3. The basics of LEGO Ideas • Age limit 13 • Each project is one new LEGO set, can use existing IP • Submitted projects need to reach 10,000 supporters • LEGO retains the right to refuse any project • Review sessions three times per year, each project reviewed independently • Final product is created by LEGO’s own designers • The originator of the idea receives a 1% royalty on the product’s net sales
  4. 4. Flow or no flow 10,000 supporters Review period cut-off Review Results Set in stores 4 months 4 months 2-8 months Up to 4 months 12-18 months from supported to stores! (actual results)
  5. 5. Rejected projects • The majority of supported projects do not get made into LEGO sets! • 2013: 3 approved, 11 rejected • 2014: 5 approved, 17 rejected • Lego used to give reasons for rejections, but no longer does – perhaps partially because of the Firefly (sci-fi series) set rejection, in which the fans showed how the arguments LEGO used were not valid • Fan alienation becoming a real issue!
  6. 6. Does LEGO have the production agility needed? • Extremely long lead times (and according to LEGO, the lead times for Ideas sets are shorter than for other sets!) • Difficulties in setting the right production run sizes (Research Institute as an example of a set where supply could not keep up with demand – new production runs could not be scheduled) • Conclusion: LEGO faces severe issues on production agility!
  7. 7. LEGO Ideas, the niche product • LEGO has demonstrated neither belief in nor commitment to crowdsourcing • Ideas, as it stands, is a nice marketing gimmick serving a niche market • From the co-creation megatrend point of view, it should be obvious that Ideas should be much more (and competition has awakened! For example, Mattel + Quirky)
  8. 8. Improvement potential exists • Lower the age limit, serve both AFOLs and the core market (COPPA child protection rules do not prevent this) • Eliminate batch reviews, implement flow • Do not treat all supported sets the same: • Mass production • Online only • Kickstarter-style preorders • Improve production agility to grasp opportunities • LEGO Ideas has potential, but it is far from being a role model as it is now

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