Why Lego is pricier in S'pore

LEGO sets may be more expensive in Singapore, compared to the prices seen in other markets - but don't blame the brick-maker. As it turns out, Lego does not practise pricing-to-market, which entails assessing the intensity of competition and consumer demand when setting prices. "We don't get involved in setting retail prices at all - that is totally at the discretion of retailers," says Marko Ilincic, Lego Group's senior vice-president and head of Asia-Pacific. He told BT that Lego only makes a recommendation to retailers - a sort of ideal price - and retailers do with that what they will.

This is in contrast to other global brands which set varying prices for the same products in different markets. This is because some consumers are willing to pay more for an item, even though it may be cheaper in another country - simply because they want it.

Indeed, a study last year by the Monetary Authority of Singapore and the Ministry of Trade and Industry found that Singapore prices for Apple, Ikea and Zara items were higher than the median for up to two thirds of the goods surveyed. Singapore's small market size also appears to explain the relatively high prices of some goods. As for Lego's heftier price tag here, Mr Ilincic says: "Of course, some retailers - particularly when a product is in high demand and with scarcity - may take the opportunity to try and optimise their own profits."