Toy Wars: Mattel takes on Lego in looming brick battle

Mattel Inc., already one of the largest toy makers in the world, wants a piece of the plastic building block business now dominated by Lego A/S.

The El Segundo, Calif.-based company famously behind Barbie and Hot Wheels is introducing Mattel Brick Shop in a move the company said "is designed to disrupt the status quo, bending the rules of building with innovative features, materials and techniques that inspire builders to try something new."

Mattel, in corporate speak, also is calling out Lego for being too expensive.

"Our commitment is to deliver building sets that surpass builder's expectations, with elevated designs and authentic details at accessible price points and I'm looking forward to revealing our first product line in a few months," said Roberto Stanichi, Mattel's global head of vehicles and building sets, in a statement.

Lego has enjoyed a decades-long domination of plastic building block sets — made from injection molded ABS. There are generic copycats in the market that are compatible with Lego, but the Billund, Denmark-based company has built a multi-billion business based on those little blocks. It has its own in-house injection molding for the toys.

The company, which a quarter of a century ago faced an uncertain financial future, has had a resurgence in popularity since then thanks in part to a licensing deal with Star Wars that helped broaden the product's appeal.

Today, Lego makes sets designed to appeal to a wide variety of demographics, including both children and adults. The company, which once was viewed as a toy for boys, has expanded its reach over the years to create products with wider appeal.

Lego serves not only as a children's toy, but also one that allows adults to recapture some of their childhood. Sets today can cost hundreds of dollars and feature intricate designs. One set, of Han Solo's Millennium Falcon ship, includes 7,541 blocks and retails on the Lego website for $849, for example.

Mattel wants a piece of that pie and plans to release the company's first set in May 2025 with more to come later.

"With Mattel's trusted legacy and expertise, Mattel Brick Shop is designed to disrupt the status quo and elevate the building experience. Here, we bend the rules of construction with innovative features and materials that inspire builders to try something new," the website states.

Mattel is clearly going after the adult audience as part of the company's move as the website prominently features a picture of a grown man interacting with bricks.

"The goal of Mattel Brick Shop is to deliver value with every product, including more surprise features, more post-build opportunities like customization and more piece count, all at a competitive price," the company said.

While Mattel is moving into the small-block toy game, the company already owns Mega Bloks, a maker of larger, easier to assemble blocks made from polyethylene and marketed toward toddlers. Lego, meanwhile, has the Duplo line of bricks for younger children. They are twice the size of traditional Lego bricks but still made from ABS.