Within Governed Bets
Why LEGO's Craft Bet Did Not Stick
Clikits showed that reaching new audiences was not enough if the product did not create durable demand inside LEGO's system.
On this page
- What Clikits was trying to solve
- Why the line struggled despite intense effort
- What the case reveals about governed audience expansion
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Introduction
LEGO’s Clikits line became an important lesson in why audience expansion alone could not guarantee durable growth. Introduced in the early 2000s, Clikits was designed to attract more girls to the LEGO brand through jewellery, accessories and craft-oriented play. The commercial logic seemed reasonable: girls represented a large share of the toy market, while LEGO remained heavily associated with boys and construction toys. Yet Clikits eventually became one of the company’s most cited examples of a growth initiative that struggled despite years of investment and marketing effort. [Campaign Live]campaignlive.co.ukCampaign LiveANALYSIS: Lego moves in on the girls' market13 Feb 2003 — Girls account for only 10% of its audience but about 45% of the ov…
In the context of LEGO’s later recovery, Clikits mattered because it exposed a deeper problem than a failed product launch. The line showed that reaching a new customer segment was not enough if the product did not reinforce the company’s core strengths, create repeat demand within the LEGO system, or fit the economics and capabilities that made the business resilient. The lesson became central to LEGO’s more disciplined approach to innovation after its early-2000s crisis.
Why LEGO’s Craft Bet Did Not Stick
What Clikits was trying to solve
Clikits emerged during a period when LEGO was aggressively searching for new growth. Executives recognised that girls represented a much larger share of the overall toy market than LEGO was capturing. Trade reporting at the time noted that girls accounted for only a small proportion of LEGO’s audience even though they represented a major part of total toy spending. Clikits was positioned as LEGO’s biggest attempt yet to close that gap. [Campaign Live]campaignlive.co.ukCampaign LiveANALYSIS: Lego moves in on the girls' market13 Feb 2003 — Girls account for only 10% of its audience but about 45% of the ov…
The product line centred on customisable bracelets, jewellery, bags, photo frames and decorative accessories. Rather than focusing on complex construction, it emphasised personalisation, fashion and self-expression. The strategy reflected a broader belief inside LEGO that growth could come from expanding into adjacent play categories rather than relying mainly on the traditional brick system. [History for Operators]historyforoperators.substack.comHistory for OperatorsHow LEGO Nearly Collapsed - History for OperatorsJune 22, 2025 — Clikits (craft jewelry kits for girls), these were…
At first glance, the idea appeared to solve a genuine strategic problem. LEGO needed new customers, and Clikits offered an entry point into a market where the company historically struggled. Early sales were encouraging enough that the company continued investing in the line. LEGO’s 2003 annual report even noted that the new girls’ products had “got off to a good start”. [LEGO]lego.comLEGOAnnual Report 2003 LEGO CompanyMarch 10, 2004 — The drop in sales of these products accounted for more than 50 per- cent of the overa…
The difficulty was that attracting initial attention and building a sustainable business turned out to be different challenges.
Why the line struggled despite intense effort
The clearest evidence comes from LEGO’s own reporting. In its 2005 annual report, the company stated that Clikits experienced declining sales despite “several years’ intense efforts” connected with the launch. LEGO concluded that no new Clikits products would be introduced after 2006. [LEGO]lego.comAnnual Report 2005 ENGLEGOAnnual Report 2005 LEGO GroupFebruary 14, 2006 — 14 Feb 2006 — 2005, whereas one of the Group's girls' products, CLIKITS, saw a decli…
That statement is significant because it suggests the problem was not simply lack of awareness. LEGO had already spent years trying to establish the range. The company was not abandoning an untested experiment; it was withdrawing from a product family that had failed to achieve lasting momentum. [LEGO]lego.comAnnual Report 2004 ENGAnnual Report 2004 LEGO GroupGeneral economic pressure on consu- mer demand combined with a squeeze on the toy market specifically driven…
Several factors help explain why.
The line sat awkwardly beside LEGO’s core identity. Clikits used LEGO elements, but the main play pattern revolved around making accessories rather than building systems. Consumers could create bracelets or decorations, yet those creations did not naturally connect to the broader LEGO universe in the way that a castle, spaceship or city set could. The line therefore generated weaker network effects across themes and age groups.
The products competed in categories where LEGO lacked natural advantages. In construction toys, LEGO possessed powerful assets: a recognised building system, decades of design expertise and a strong reputation for creative construction. In fashion accessories and craft products, those advantages were less clear. The company was entering markets where competitors already understood trends, aesthetics and purchasing behaviour.
Repeat engagement was harder to sustain. Traditional LEGO themes often encourage collection, expansion and recombination. A child who owns one set can connect it to another. Clikits products offered personalisation, but they did not create the same long-term ecosystem of interconnected play. Once the novelty of a bracelet or accessory faded, there were fewer reasons to keep buying into the system.
The fit with LEGO’s operational model was weaker. During the years before the turnaround, LEGO was already struggling with rising complexity, too many product variants and costly experimentation. Products that sat further from the core brick system added organisational complexity without necessarily strengthening the company’s most valuable capabilities. [Strategy]strategy-business.comStrategy+businessRebuilding Lego, Brick by BrickAugust 29, 2007 — 29 Aug 2007 — Sales dropped 30 percent in 2003 and 10 percent more in 2… [business]strategy-business.comStrategy+businessRebuilding Lego, Brick by BrickAugust 29, 2007 — 29 Aug 2007 — Sales dropped 30 percent in 2003 and 10 percent more in 2…
From an antifragility perspective, Clikits exposed a critical weakness. The experiment created risk and complexity, but the lessons and assets generated by that risk were difficult to feed back into the core business.
The Difference Between Finding Customers and Finding Fit
One reason Clikits remains an important case is that it challenges a common assumption about innovation: that identifying an underserved audience is enough.
LEGO had correctly identified a real market opportunity. Girls were not fully represented within the company’s customer base. The failure came from treating audience access as the primary problem rather than asking how that audience could be served in a way that reinforced LEGO’s distinctive strengths.
The contrast with later initiatives is revealing. When LEGO launched Friends in 2012, the company again pursued stronger engagement with girls. However, Friends remained much more tightly connected to the core construction system. The sets used building-based play, integrated with LEGO’s manufacturing and design capabilities, and created opportunities for repeat purchases across a coherent theme. The line became one of LEGO’s biggest commercial successes, with sales to girls rising dramatically after launch. [Wikipedia]WikipediaLego FriendsLego Friends
The comparison does not mean Clikits failed because girls were an unattractive market. It suggests the opposite. The market opportunity was real, but the product architecture and business fit were not strong enough in the earlier attempt.
This distinction became important during LEGO’s recovery. The lesson was not “avoid new audiences”. The lesson was “reach new audiences through strengths that compound”.
What the Case Reveals About Governed Audience Expansion
Within LEGO’s broader turnaround story, Clikits helped demonstrate why innovation needed stronger governance. Before the crisis, the company often explored opportunities by moving into adjacent categories, hoping that growth would follow. Clikits, Galidor and several other initiatives showed that adjacency alone was not a sufficient test. [Harvard Business Review]hbr.orgHarvard Business ReviewInnovating a Turnaround at LEGOMany of its innovation efforts—theme parks, Clikits craft sets… failed outright….
The post-crisis organisation increasingly asked tougher questions:
- Does the product strengthen the LEGO system rather than merely carrying the logo?
- Does it create repeatable demand rather than one-off purchases?
- Does it reinforce capabilities the company already performs exceptionally well?
- Can lessons from success or failure be reused elsewhere in the business?
Clikits scored well on audience ambition but less well on those deeper tests. The line sought new consumers, yet it did not generate the durable reinforcing loops that later became central to LEGO’s growth model.
That is why Clikits remains more than a discontinued product range. It became evidence that antifragile growth requires more than expansion. New customers matter, but the way a company reaches them matters just as much. For LEGO, resilience emerged when experimentation became connected to the strengths of the brick system rather than drifting away from it. Clikits showed the cost of confusing market opportunity with strategic fit.
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Endnotes
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Source: lego.com
Link: https://www.lego.com/cdn/cs/aboutus/assets/blte6c97bc4718a1848/Annual_Report_2003_ENG.pdfSource snippet
LEGOAnnual Report 2003 LEGO CompanyMarch 10, 2004 — The drop in sales of these products accounted for more than 50 per- cent of the overa...
Published: March 10, 2004
-
Source: lego.com
Title: Annual Report 2005 ENG
Link: https://www.lego.com/cdn/cs/aboutus/assets/blt6eacf5a8b7af1359/Annual_Report_2005_ENG.pdfSource snippet
LEGOAnnual Report 2005 LEGO GroupFebruary 14, 2006 — 14 Feb 2006 — 2005, whereas one of the Group's girls' products, CLIKITS, saw a decli...
Published: February 14, 2006
-
Source: Wikipedia
Title: Lego Friends
Link: https://en.wikipedia.org/wiki/Lego_Friends -
Source: lego.com
Title: Annual Report 2004 ENG
Link: https://www.lego.com/cdn/cs/aboutus/assets/blt07abb4b8a3da3f39/Annual_Report_2004_ENG.pdfSource snippet
Annual Report 2004 LEGO GroupGeneral economic pressure on consu- mer demand combined with a squeeze on the toy market specifically driven...
-
Source: lego.com
Title: Annual Report 2006 ENG
Link: https://www.lego.com/cdn/cs/aboutus/assets/blt6469a262aeabdb3d/Annual_Report_2006_ENG.pdfSource snippet
Annual Report 2006 LEGO Groupproducts.sales.were.expected.to.show. a.small.decrease.and.earnings.were.expected.to.remain.un- changed.co...
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Source: lego.com
Title: Progress report2006
Link: https://www.lego.com/cdn/cs/aboutus/assets/blt84e427a3dcec8045/Progress_report2006.pdfSource snippet
[Sustainability]({{ 'sustainability/' | relative_url }}) report 2006We believe that the LEGO Group performed well in 2006 towards our consumers; however we have noted an unsatisfa...
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Source: campaignlive.co.uk
Link: https://www.campaignlive.co.uk/article/analysis-lego-moves-girls-market/170455Source snippet
Campaign LiveANALYSIS: Lego moves in on the girls' market13 Feb 2003 — Girls account for only 10% of its audience but about 45% of the ov...
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Source: hbr.org
Link: https://hbr.org/2009/09/innovating-a-turnaround-at-lego -
Source: campaignlive.co.uk
Title: lego targets girls clikits range
Link: https://www.campaignlive.co.uk/article/lego-targets-girls-clikits-range/169786Source snippet
Lego targets girls with Clikits range6 Feb 2003 — Lego is making its biggest attempt yet to crack the girls' toys market with a designer...
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Source: historyforoperators.substack.com
Link: https://historyforoperators.substack.com/p/the-lego-turnaroundSource snippet
History for OperatorsHow LEGO Nearly Collapsed - History for OperatorsJune 22, 2025 — Clikits (craft jewelry kits for girls), these were...
Published: June 22, 2025
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Source: strategy-business.com
Link: https://www.strategy-business.com/article/07306Source snippet
Strategy+businessRebuilding Lego, Brick by BrickAugust 29, 2007 — 29 Aug 2007 — Sales dropped 30 percent in 2003 and 10 percent more in 2...
Published: August 29, 2007
-
Source: facebook.com
Title: business turnaround lesson from legoin the early 2000s lego was in deep trouble
Link: https://www.facebook.com/darrenleejacklin/posts/-business-turnaround-lesson-from-legoin-the-early-2000s-lego-was-in-deep-trouble/10172441418155512/Source snippet
Business Turnaround Lesson from Lego In the early 2000s...💡 Business Turnaround Lesson from Lego In the early 2000s, Lego was in deep tr...
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Source: facebook.com
Link: https://www.facebook.com/groups/758824395633075/posts/1524908099024697/Source snippet
The company was...In 2004, LEGO was in serious trouble. The company was losing about $1 million every day. It had tried to grow into man...
Additional References
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Source: ebay.de
Link: https://www.ebay.de/itm/267598180247?srsltid=AfmBOoqbeKM_VFfU_4IpgAPO_k06gxA1GIuwglxvfw6l4Fu0hCoWZtOaSource snippet
CLIKITS LEGO Girls Creative Design Jewellery Make Build...A mixed collection of fun original Lego Clikits toys. A fun lot of design jewe...
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Source: proactiveinvestors.com.au
Title: lego shows first annual sales decline since 2004 192679
Link: https://www.proactiveinvestors.com.au/companies/news/192679/lego-shows-first-annual-sales-decline-since-2004-192679.htmlSource snippet
Lego shows first annual sales decline since 20046 Mar 2018 — Privately-owned Lego Group has seen its first fall in annual sales in 13 yea...
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Title: the lego case study the great turnaround 2003 2013
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The Lego case study, the great turnaround 2003 - 2013 | PDFThe Lego case study outlines the company's remarkable turnaround from a signif...
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Title: lego posts first sales fall for 13 years 11278420
Link: https://news.sky.com/story/lego-posts-first-sales-fall-for-13-years-11278420Source snippet
posts first sales fall for 13 years | Money News6 Mar 2018 — Lego has reported its first fall in annual sales for 13 years after a challe...
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Source: thehustle.co
Link: https://thehustle.co/first-time-13-years-lego-reported-decline-revenue-profitSource snippet
7%, and revenue drop 8%, breaking their 13-year growth streak...
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Source: toypro.com
Title: lego r history lego r clikits
Link: https://www.toypro.com/en/news/973/lego-r-history-lego-r-clikits?srsltid=AfmBOopaYbwOKU-g4jnm9WrnLJxWghWXwRNI6sf2bxYTSqlrRe2z2RXnSource snippet
LEGO® History: LEGO® Clikits16 May 2023 — LEGO Clikits is a colorful and fun series of LEGO parts and accessories introduced in 2003. Des...
Published: May 2023
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Source: studocu.com
Title: annual report 2004 lego
Link: https://www.studocu.com/en-ca/document/laurentian-university/strategic-management/annual-report-2004-lego/40878675Source snippet
LEGO Group Annual Report 2004: Strategy and Market...General economic pressure on consu- mer demand combined with a squeeze on the toy m...
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Source: youtube.com
Title: How LEGO’s ‘Blue Ocean’ Strategy Nearly Destroyed Them
Link: http://www.youtube.com/watch?v=s5U5Q2H9U1MSource snippet
Lego 2021: Financial Analysis - how profitable is the world's largest maker of car tyres?...
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Title: The Lego Group’s Near Bankruptcy: A Case Study in Innovation Failure
Link: http://www.youtube.com/watch?v=y_K9h2H7x_ASource snippet
Why LEGO Almost Went Bankrupt (And How They Recovered)...
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Title: Why LEGO Almost Went Bankrupt (And How They Recovered)
Link: http://www.youtube.com/watch?v=i90sC4-b778Source snippet
The Innovation Lessons from the Rise, Fall, and Rise of LEGO...
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