There’s an interesting angle about which definition you use for constitutes a good business. There is robust demand for good quality toys (e.g. LEGO, Brio, Melissa & Doug) but it’s relatively stable because not everyone wants to buy in the higher price ranges, demand is finite, and making quality toys means you’re competing against yourself because many toys are passed down to siblings and resold or gifted locally.
If you’re a parent that’s good, but if you’re trying to serve market expectations of constant growth you’re always under pressure to cut corners, and thus the long-term future of your brand, since the business can’t grow rapidly without a baby boom. LEGO clearly hit escape velocity but they seem more like an outlier.
If you’re a parent that’s good, but if you’re trying to serve market expectations of constant growth you’re always under pressure to cut corners, and thus the long-term future of your brand, since the business can’t grow rapidly without a baby boom. LEGO clearly hit escape velocity but they seem more like an outlier.