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

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

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

Flow or no flow10,000

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)

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!

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!

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)

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