As LEGO fans age, they often undergo a shift in their consumption motives. When they are kids, they love the toys as a way to spend countless hours engaged in fun that their parents encourage. As they reach adulthood, they tend to reconsider the appeal of LEGOs, as collectors’ items, many of which cater to specific, niche, and beloved special interests. But over the course of their relationship with the bricks, LEGOs consistently represent a fundamental part of many people’s lives, as they have for more than 100 years. 

But just as its customers grow and mature, so must the company. For example, it needs to pay attention to the competition. Mattel introduced a new toy line at the most recent Nuremberg Toy Fair, called the Mattel Brick Shop. With many of the same functionalities as LEGOs, the building sets incorporate design elements and building technique that force users to think differently. This introduction seemingly reflects Mattel’s effort to address several years of declining sales. In addition to this direct challenge to LEGO, Mattel has sought to expand its brand partnerships, such as a recent collaboration with Ferrari to develop a new range of Hot Wheels.

Mattel might be the most familiar, but it is not the only competitor that LEGO must consider. The toy company Jazwares also announced its version of building bricks, which it has branded as BLDR sets. The bricks in these kits are designed purposefully to be compatible with other popular designs, including LEGOs. Early iterations include Jujutsu Kaisen and Chainsaw Man, figures that emulate the look and playability of traditional action figures, more so than most existing, static brick-building sets. In addition, its Hello Kitty toy kit includes figures that feature movable ball joints, such that they can be manipulated to display a new range of motion. Other releases, inspired by the brand’s popular Squishmallow stuffed toys, are expected. Early reports indicate that each of these kits will contain one “SquishBrik,” a development that would introduce a soft, tactile element to traditional building sets.

Such competing launches seemingly are growing increasingly common in toy markets, especially as the life cycles of modern products continue to grow shorter and shorter. To ensure their offerings appear on the big retailers’ shelves, toy companies confront the constant pressure to innovate and capture children’s imaginations, again and again.

But LEGO retains some secret weapons in this battle. As noted, it has spent years building powerful brand loyalty with consumers of all ages. Furthermore, when it comes to brick-building sets, most shoppers still think of LEGO, first and foremost. When its competitor Tyco tried to introduce a similar, copycat strategy in the 1980s, it declared its clear intention to breach LEGO’s brick walls. It did not last long.

Discussion Questions

1. What novel features might the Mattel Brick Shop and Jazwares BLDR sets offer, which LEGOs do not?
2. How should LEGO respond to maintain and shore up its competitive advantages? 

Sources: Cameron Faulkner, “Lego’s Competition Just Launched Jujutsu Kaisen and Chainsaw Man Kits,” Polygon, January 29, 2025; Joan Verdon, “New Bricks Hitting the Toy Aisles as Companies Compete With Lego,” Forbes, March 13, 2025; Nate Delesline III, “Mattel Takes Aim at Lego With Brick-Based Building Brand,” Retail Dive, January 28, 2025.