Toys R Us Asia and the LEGO Group pursue growing Chinese toy market

Despite the disappearance of Toys R Us in the UK and US, the retail brand continues to trade successfully in China as the LEGO Group pushes for more sales in the region.

A Bloomberg news article reveals that while Toys R Us may have folded in the UK and US as well as other countries around the world, the familiar brand is continuing to succeed in China. Toys R Us Asia saw an agreement between creditors and Fung Retailing Ltd to allow the subsidiary to continue to exist as a separate company.

The article highlights the LEGO Group’s intention to target the Chinese market. With the toy and game market in China set to be the world’s largest by 2022, there is a good reason for such companies wanting to ensure they are part of the mix. According to Bloomberg, parents in China are more liable to trust established Western brands after safety scandals involving counterfeit toys.

“We are different than the rest of the Toys ‘R’ Us world,” said Andre Javes, President and Chief Executive Officer of the Asian business. The company plans to open another 50 stores in 2019. Physical shopping is still preferred to online shopping by many families in the country. “People go to malls for entertainment, food, socializing,” he said. “That makes us convenient for people because we are where they’re going.”

The LEGO Group is also planning for more branded stores, planning another 80 in addition to the 55 stores already open in China.

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Graham was the Editor up until November 2020. He has plenty of experience working on LEGO related projects. He has contributed to various websites and publications on topics including niche hobbies, the toy industry and education. Follw Graham on Twitter @grahamh100.

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