What does Mattel’s new building brand mean for LEGO – and for you?
Toy giant Mattel has announced the launch of a new construction toy brand – but what does this mean for the LEGO Group as a direct competitor?
Mattel, the toy brand behind Barbie, Hot Wheels, and much more, has announced plans to dig into the construction market, lining up as direct competition to the LEGO Group. While LEGO products are not the only brick-building toys on the market, Mattel’s status as one of the biggest toy brands in the world is certainly something to pay attention to.
Read on for a closer look at some of the ways that Mattel’s presence in the construction toy market could affect the LEGO Group – and you as a LEGO fan – below.
Price per piece to reign supreme
Digging into the subtext of Mattel’s press release, there’s a lot of emphasis on value – something that is at the forefront of most LEGO collectors’ minds. Concerns have been rising among both LEGO Marvel and Star Wars fans – although not limited to those themes – about sets perceived to be overpriced.
For Mattel, the goal is “to deliver value with every product” in its own words, making direct mention of “more piece count…at a competitive price.” Roberto Stanichi, executive vice president and global head of vehicles and building sets went on to say that the company wants to offer “elevated designs and authentic details at accessible price points.”
Mattel appears to have identified a pain point for some LEGO fans around price. While no sets or prices have yet been revealed, having a high-quality competitor could put pressure on the LEGO Group’s prices or to continue improving on its quality. For example, the LEGO Group might be more motivated to address ongoing criticisms like colour-matching between stickers and bricks, minifigure design shortcuts, or other critiques that makes LEGO fans feel like their money is not going as far as they want it to.
Expanding on market share
Mattel Brick Shop isn’t Mattel’s first foray into construction products, having already acquired MEGA (formerly Mega Bloks) in 2014. In 2017, it commanded just 11% market share in the US (according to research compiled by Euromonitor), which doesn’t hold a candle to the LEGO Group’s dominance. To offer a sense of how strong LEGO is as a brand, $8 out of every $10 spent on construction sets goes on LEGO products in the US.
However, that arguably just gives Mattel more room to grow, especially when you look at what MEGA does currently. There’s a blend of general sets and licensed IP, including several sets based on Pokemon. Within those licensed sets, the characters and builds look as though they’ve been directly pulled from the source material, a stark contrast to the LEGO-fication of characters featured in LEGO sets.
You don’t see a direct copy of Ewan McGregor in minifigure form when you get a Kenobi minifigure but MEGA figures achieve a greater level of accuracy. Comparing MEGA’s brick-built Pikachu to the much-critiqued LEGO Star Wars 75371 Chewbacca, for example, is a clear example of the differences between the two brands.
Of course, that’s not necessarily good or bad. Many LEGO fans love LEGO products precisely because there’s a unique LEGO-ness to them that makes them stand out. It’s why LEGO Star Wars has grown to become a franchise in its own right, sparking its very own animated series and subsequent sets in the form of Rebuild the Galaxy.
Mattel boasts a library of IPs
We’ve touched on licensed IPs there but Mattel has another area that it can pull on: in-house IPs. Where the LEGO Group has painstakingly built up its own themes, ranging from lore-filled ones like NINJAGO to more straightforward ones like City, Mattel already has a wealth of different IPs in its wheelhouse.
That includes but is not limited to Barbie, Hot Wheels, American Girls, Toy Story, Fireman Sam, and more. Having so many popular IPs already ready to go means it would be a simple – and much cheaper – matter to create brick-built toys based on them.
Returning to the price point from above, the reason some licensed LEGO products can cost more than LEGO CIty sets, for example, is because the LEGO Group needs to bake in the cost of licensing an IP from a third party. If Mattel can skip over that obstacle, it will make it easier for them to compete aggressively on price.
Competition breeds innovation
The long and short of it is that there are various ways that Mattel and the LEGO Group can go head-to-head. Both companies have some huge advantages to weigh in on their respective corners – and, from a consumer perspective, that’s only a good thing.
Competition breeds innovation and we’ve outlined areas where both companies can stand to grow above. Having two heavyweights seemingly go head to head on the global toy market will surely only encourage them both to bring out better and brighter products. From the perspective of fans, whether you might want to mix it up with Mattel or stay loyal to LEGO, innovative products are the fastest way to see major changes to the sets we love.
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Lego Orko confirmed.
I guess this might get us Masters of the Universe (if not She-Ra? The rights are weird there, yes?). A brick-built Castle Grayskull would be a spicy piece of real estate, or something.
I’m not going to hold out hope that the pricing is going to hobble Lego, but maybe there’ll be some nice mid-range sets.
Monster High has to be a shoo-in for a minidoll line. Heartlake City is going to have to invest heavily in Bat Futures…
There’s already a MEGA Castle Greyskull.
https://shop.mattel.com/products/mega-construx-masters-of-the-universe-castle-grayskull-ggj67
Mega blocks/mega construx already did Monster High when my teenager was little. She still has the set and the mini figures. They are similar to the American Girl sets. I’m surprised the author brought that up as a possible “new” thing. We have so many of the American Girl doll mega-construx sets. American Girls and LEGO Friends coexisted happily in their neighboring towns for many years in my daughter’s room until she decided she wasn’t interested anymore. Now they live in my closet waiting for the day I have time to get them out to play with. They were really fun. The bricks are completely compatible with LEGO but the build are a different scale. Mega was slightly larger but also had more detailed accessories, like fabric curtains that hang on little curtain rods. Sometimes Lego Friends were subbed in as the children and American Girls were the moms. That’s about the difference in scale.
How is this even legal?!!!
What do you think would stop it?
There’s already compatible bricks from other companies, and they’re not breaking any laws.