Danish toy firm Lego opens first store in India, eyes double-digit growth

Danish toy giant Lego launches its first store in Gurugram, aiming to expand offline footprint in India with new outlets, tier II city reach, and accessible price points

Danish toymaker The Lego Group expects strong growth in India, driven by the country's vast population of young children, a top executive told Business Standard.

 

“We’ve seen Lego love grow not just among kids, but also parents and adults in recent years. India has the largest population of young children globally, and we want to build on that,” said Bhavana Mandon, country manager, Lego India, ahead of the launch of its first retail store in Gurugram.

 

Lego’s first branded store in India marks a deeper push into the South Asian market. Until now, the company has been selling through platforms such as Hamleys, FirstCry, and online channels.

 

A 2024 note by Exim Bank valued the Indian toy market at $1.5 billion in 2022 and projected it to reach $3 billion by 2028, expanding at a compound annual growth rate (CAGR) of 12 per cent between 2023 and 2028.

 

“The store marks a key milestone in expanding our reach as we see rising demand for creative play in India,” Mandon said.

 

Spread over 4,500 square feet, the Gurugram store will be South Asia’s largest, offering over 800 stock-keeping units, including more than 250 exclusive sets.

 

Lego plans to open several new stores through its partner Ample, with the next outlet set to come up in Bengaluru in about three months. It is also seeing rising interest from beyond metro cities.

 

“As an experience-led brand, we want this new retail format to bring the Lego world to life. But demand is coming from across the country, reflecting growing aspirations,” Mandon said. 

 

While the core customer base remains in metro cities, Tier-II locations like Chandigarh, Ahmedabad, and Lucknow are contributing to Lego’s India build.

 

To attract a broader audience, Lego has factored in India’s price sensitivity, with products starting at ₹449 and going up to over ₹80,000.

 

“There’s a wide range of price points to suit everyone — from new enthusiasts to devoted adult fans. We’re seeing steady demand from both new and loyal purchasers,” she added.

 

Lego is targeting double-digit growth in India and expects to outpace the projected CAGR through 2032.

 

“India has been both challenging and rewarding. We’re trying to stay relevant to kids, especially as increased screen time cuts into opportunities for constructive play. For many parents, play was once seen as frivolous, but they’re now beginning to understand that it can help children develop valuable skills. That gives us plenty of room to grow,” Mandon said.

 

Adults are also turning to Lego bricks, she added, as rising disposable incomes give them new ways to “mentally detox” — a trend the company is keen to build on.