Lego's first license was for Star Wars, and 25 years later, the partnership remains strong.

Lego's first license was for Star Wars, and 25 years later, the partnership remains strong.
Lego's first license was for Star Wars, and 25 years later, the partnership remains strong.
  • Disney's Star Wars and Lego are celebrating 25 years of partnership.
  • For the first time, Lego struck a licensing deal and established a framework for other franchises through a team-up.
  • Since 1999, Lego Star Wars has expanded into its own universe, encompassing video games, apparel, and other merchandise.

Jens Kronvold Frederiksen may have been the architect of your childhood if you are a Star Wars fan.

For the past 25 years, he has been a design director at the Denmark-based Lego company, focusing on creating Lego Star Wars sets.

"According to Frederiksen, he approached his boss and stated, "I need to be part of this product line," which was a fulfillment of his dream. The combination of Star Wars and Lego, two of his favorite things, made it even more exciting for him."

The Star Wars franchise has gained a massive following since 1999, with fans purchasing a range of merchandise from mini figure keychains to expensive sets. The franchise has expanded to include video games and animated content on Disney+, as well as a presence on Fortnite.

Lego's first official product line tied to licensed intellectual property was the Star Wars license. The Jar Jar Binks mini figure was the first to feature a custom head sculpt instead of Lego's iconic round faces.

The company's other brand deals, such as Harry Potter, Batman, and Marvel's Avengers, have been modeled after the success of Lego Star Wars.

"Jill Wilfert, head of global entertainment partners and content at Lego, stated that although they were creating themes, they weren't always connecting them to the deeper story. However, seeing how Star Wars allowed people to open up their imaginations and express their creativity in a different way, she believes that Star Wars was the key to unlocking this potential."

Lego, with Wilfert having been an employee for 36 years, expressed trepidation about third-party licensing prior to the Star Wars deal.

"Seeing how well it translated and the positive response it received gave us more confidence," she stated.

In the early 2000s, Lego was facing financial difficulties, including high debt, intense competition from digital gaming platforms, and a diversified portfolio that was no longer profitable. The company was on the verge of bankruptcy.

In 2005, the company launched a Lego Star Wars video game, which helped keep the company afloat during a time when it reduced its product lines and shut down noncore businesses.

""The gaming franchise has been highly successful and remains so today, as stated by Paul Southern, senior vice president of third-party commercialization and franchise development at Disney. It established the gaming world," said Paul Southern."

A Force in the toy aisle

Despite not having any new theatrical releases linked to it, Lego Star Wars continues to be one of the top-selling brands for Lego, with strong sales even after two decades.

The global toy industry saw sales slip 7%, but Lego reported that it grew sales 2% in 2023, according to data from Circana.

Once again, the toymaker cited Lego Star Wars as a driving force behind sales. Additionally, Lego Icons, Lego Technic, Lego City, and Lego Harry Potter also performed well.

Despite a smaller increase in sales compared to previous years, Lego maintained its market share in the toy industry in 2021 and 2022, with a 27% and 17% jump, respectively. This success can be attributed to the broad appeal of brands like Lego Star Wars, which cater to various demographics and generations.

Lego offers a range of sets with varying price points and levels of complexity, enabling children to construct simpler models and enact scenes from the franchise, while dedicated collectors can create intricate replicas of their favorite ships, helmets, and movie moments.

The franchise's enduring appeal is due to its vast library of content spanning over 50 years.

"Of course, the main thing for us is that this is for kids," Frederiksen stated. "The model should be both fun and creative, as well as an inspiring experience for building."

To enhance the building experience, Lego offers variations in brick colors and details, even though an Imperial Shuttle is almost entirely white.

Although Frederiksen no longer designs products, he continues to construct everything. To him, it is crucial to feel how each set is assembled.

In commemoration of the 25th anniversary of the Lego and Star Wars collaboration, as well as the 25th anniversary of "The Phantom Menace," Lego is launching a range of special sets. Among these are the TIE Interceptor model priced at $230, the Mos Espa Podrace diorama available for $80, the Droideka model priced at $65, and new BrickHeadz characters priced at less than $10 each.

"Families often bond over properties and Star Wars, which may be more prevalent than other shared experiences, according to Wilfert. Through parents who grew up with Star Wars, families are introduced to the franchise and continue to connect with it. Properties that facilitate these connections are highly relevant."

Younger consumers can engage with Lego through new digital products like video games and Fortnite.

Wilfert stated that they are ensuring they are in locations where children are spending their time.

An even bigger galaxy

Southern stated that the Lego Star Wars brand has expanded beyond bricks and mini figures to become a self-contained ecosystem.

He stated that Lego Star Wars is a distinct entity within our business, making it quite special.

Lucasfilm acquired Southern a decade ago, and he has witnessed the growth of Lego Star Wars firsthand.

The humor associated with the Lego Star Wars brand is a significant part of its growth, as seen in both video games and animated content.

Southern stated that they have created an atmosphere and communication style that enables them to engage in activities that are playful and slightly mischievous.

And that humor has extended to other franchises.

""Lego's use of humor and charm in Star Wars allowed people to see the potential of intellectual property beyond just its original context. We found that most IP owners are open to collaborating with us and allowing us to explore different possibilities," Wilfert stated."

Lego has collaborated with franchises such as Harry Potter, Indiana Jones, Batman, Pirates of the Caribbean, Lord of the Rings, Marvel, Jurassic World, and Pixar's "The Incredibles" on both video games and animated projects.

But it all started with Star Wars, which keeps growing.

Southern stated that the enthusiasm for the brand among fans and children has been harnessed and expanded into various sectors, including video games, publishing, and apparel.

Disney and Lego's strong sales of diverse products led to the extension of their Star Wars contract through 2032.

"The relationship has become smoother due to the efforts of individuals who have been involved on both sides throughout the relationship," Southern stated. "Now, they feel like family. The communication is straightforward, transparent, and cooperative."

Disney and Lego can collaborate on long-term projects such as video games and animation, as well as commemorative sets for significant milestones due to the extended license lead time.

"Southern stated, "We're celebrating 25 years of working together and expect to continue for another 25 years, evolving our relationship and making it relevant for future generations.""

by Sarah Whitten

Business News