Lego Distribution Channel

In European market, the highest growth rates continue to materialize, but almost all markets achieved two-digit growth rates. What's more, direct sales to consumers, accounting for some 10% of the Lego group's sales.

In America market, it is the largest market for Lego in the global market. It also achieved two-digit growth rates every year by using different kinds of distribution channel.

In Chinese market, Lego entered into China in 1992 and established its first distributor--Guangzhou ZHILE Company which was the sole agent in Mainland China until now. Though the sales revenue was increased by 30% in the US and 28% in England, it increased only 5% in the Chinese market in 2009. The low sales rate has been the main problem to the Chinese Lego branch. This problem is to be analyzed through Lego's distribution channel. Because the inefficient distribution channel have made the low sales rate.

Thus, the inefficient distribution channel in China is a serious problem for Lego. And if is has not been solved, it will be a loss for both parties: Lego will get less profit and Chinese consumers could not get the products of Lego to meet their needs and wants. In this situation, we are interested in this problem and hope to give some helpful suggestions to Lego.

In 2007 further work has been done in respect of the OHSAS 18001 (see it in the Appendix )certification of the model building activities in Kladno, the Czech Republic, as well as the offices in Enfield, USA; Munich, Germany and Slough, UK. The goal for 2007 was that all these locations should obtain OHSAS 18001 certification in line with the activities at Billund, Denmark. Apart from Enfield, USA, the Group succeeded in obtaining certification of the activities and offices mentioned according to the OHSAS 18001 standard. This is seen as an important step in the further global work to ensure a good working environment. Therefore, in Europe, all