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China’s first LEGOLAND, one of the world’s largest, is officially opening its gates this weekend and hopes that the reconstruction of Lego at the Great Wall and other attractions will attract visitors despite pressure on consumer spending in the world’s second-largest economy.
Located approximately 50 km of the city, LEGOLAND Shanghai also includes Lego replicas of the city’s unique skyline. The park’s operators say it has over 75 vehicles, other models, and yellow figures on the company’s signature, using a total of 85 million bricks.
“This is a huge moment for us,” says Fiona Eastwood, chief executive of UK-based Merlin Entertainments, who jointly operates Legoland Shanghai with local government in the Jinshan district. “It’s about strengthening our presence in China.”
China’s theme park industry is the largest in the world, second largest after the US, following the rapid expansion of the 2010s. The expansions and surges in new projects, which often utilize foreign intellectual property, reflect the high hopes for growth in an economy where consumer demand is lacking momentum.
“In first tier cities, people have expenditure power,” says Beth Chang, economist at infrastructure consultant AECOM, referring to consumers in China’s largest city. “They want high quality experiences, which is why you still have that market even when the economy is struggling.”
However, she added that Legoland will be a “very big test” given its high price and location.
Shanghai’s waterfront Lego replica and skyscrapers in Luziazui Financial District © VCG/Getty Images
At an estimated 200 theme parks across the country, visitors’ income is “very weak,” she said, but foreign IP-based properties such as Disney and Universal Studios in Beijing “can “be (still maintain) attendance within a fairly reasonable range.”
In May, Disneyland Shanghai began construction with the new Spider-Man section, the third expansion since opening in 2016. Warner Bros Discovery confirmed this week that the Harry Potter Studio Tour will open in 2027.
Ambitious plans go against the background of pessimistic consumers. “As we know, Chinese consumers are getting a bit of a challenge,” said Hugh Johnston, Disney’s chief financial officer, during a revenue call in May, adding that attendees are still “very good” but consumers “tighten the belt.”
Construction of Legoland Shanghai, the 11th park around the world, began in 2021 ©VCG/Getty Images
Construction of LEGOLAND Shanghai, the 11th park around the world, began in 2021. The partnership with local governments dates back to 2019, before the Covid-19 pandemic, when the domestic market was already busy. Domestic parks are “a willing to reinvest and provide a good experience… They can only compete for prices, and that’s a vicious cycle,” Chan said.
Chen Shenyu, a senior consultant at China Insights Consultancy, said foreign IP-based parks benefited from government support policies, but younger consumers are increasingly focusing on “emotional and experience-driven consumption.” However, he added that they face challenges from domestic competitors “integrating local cultures.”
Shanghai Legoland Park includes go-karts engraved with the logo of Chinese carmaker BYD, as well as figures in classic kanji such as the Monkey King.
Luo Yitt said in her 20s, when she was visiting a nearby city city, she and her boyfriend bought an annual pass of RMB 1,399 ($195) and already had an annual pass at Disneyland.
“Lego was popular in my childhood, so when I grew up, I still have the longing for a child,” she said, adding that younger people in China had a greater interest in toy and animation characters than their previous generations.
Merlin has begun construction at No. 2 Legoland in the southern city of Shenzhen. The park is aimed at two to 12 children and their families. “After school, it definitely is to test out LEGOLAND in Shanghai,” Chang said.
Additional Reports by Wang Xueqiao in Shanghai
