Mr Feschuk (left) and Mr Hasegawa play with Legos at the brand's first Thai store opening at Siam Paragon. PITSINEE JITPLEECHEEP

Danish toy company Lego will debut its first shop in Thailand tomorrow as part of its business strategy to drive sales in Asia.

Atsushi Hasegawa, general manager of Lego Singapore Pte, said the company has partnered with DKSH Thailand, the distributor of Lego in Thailand, to open the first Lego shop spanning 170 square metres on the second floor of Siam Paragon. Lego wants to reach more Thai kids and expand its business, he said.

"Lego sales in Thailand are still small," Mr Hasegawa said. "The penetration rate of Lego among Thai kids is about five times less than in some countries in Europe, meaning there is huge potential to expand here."

The shop at Paragon will sell about 300 Lego products in different shapes and colours, priced at 180-30,000 baht.

There are 240 certified Lego stores worldwide and 50 in Asia, including locations in China, Japan, South Korea, Singapore, Indonesia and the Philippines.

"Thailand is a very attractive market for Lego because of the established economy, large population and retail landscape," Mr Hasegawa said.

DKSH has distributed and marketed Lego products in Thailand for about two decades.

The educational toy market is worth an estimated 1 billion baht in Thailand, with average growth of 1-2% a year. Lego controls a market share of 20-25% in the segment.

"Lego sales have fared better than the overall toy category, regardless of whether the economy is in a bad or good condition," said Arden Feschuk, director of commercial development at DKSH Consumer Goods.

Lego has sustainable sales here because the company increased play areas for more consumer engagement, Mr Feschuk said. Moreover, DKSH provides a full assortment of products and even launched some exclusive ones in Thailand at the same time as in other countries, he said.

Some 60-65% of Lego sales in Thailand come from department stores, 15% from specialty stores and the remainder from hypermarkets and e-commerce.

The company expects sales of 100 million baht from the opening of the Lego shop in the first year of operations, rising to 300 million baht within five years, excluding existing channels.

"The opening of Thailand's first Lego shop reaffirms the country's positioning in the company's regional rankings," Mr Hasegawa said.

Mr Feschuk said the store will help strengthen the brand in Asia, the fastest-growing market for Lego.

During the first year, the company expects more than 400,000 guests to visit the store, with Thais accounting for 60%.

In addition to the 300 Lego products, 32 collector's items will be available at the new store, with prices matching those sold in neighbouring countries, Mr Hasegawa said, so Lego fans will not need to travel abroad to buy them.

The special collections will be available at the same time they are launched in the US and Europe.