The History of Miniature Christmas Village Collections: The Lemax Story
- 5 min read
- Informational feature piece
Every holiday season, millions of homes transform into winter wonderlands adorned with twinkling lights, festive decorations, and intricate miniature villages that capture the magic of Christmas. These charming collections have become a beloved tradition, but their history is rooted in fierce competition, entrepreneurial spirit, and a family rivalry that changed the collectibles industry forever.
The Birth of a Phenomenon: Department 56
The story of miniature Christmas villages begins in 1976 with Department 56, a company that revolutionized holiday decorating. Originally a department within Bachman’s, a Minneapolis-based floral and gift retailer, Department 56 introduced a series of ceramic buildings that would become the foundation of the collectible village market.
The company’s name itself has an interesting origin—it came from the department number assigned to the wholesale gift imports division within Bachman’s. When the division was spun off as an independent company, the utilitarian name stuck, becoming one of the most recognizable brands in the collectibles world.
Interestingly, Bachman’s also manufactures model trains, and their On30 gauge trains and streetcars are the perfect scale for Department 56 buildings, allowing collectors to add authentic transportation elements to their village displays.
Department 56’s breakthrough came with “The Original Snow Village,” a collection of hand-painted ceramic buildings that depicted idealized American small-town scenes. The nostalgic appeal was immediate and powerful. Collectors weren’t just buying decorations; they were purchasing memories, creating miniature worlds that evoked simpler times and childhood wonder.
The Lee Brothers Enter the Scene
As Department 56’s success grew throughout the 1980s, two brothers saw an opportunity. In 1990, Jack and Gaston Lee founded Lemax, establishing their company with a clear mission: to create high-quality miniature villages that could compete directly with the industry giant.
The brothers brought different but complementary skills to their venture, dividing responsibilities strategically. Jack Lee oversaw production operations in China, ensuring quality control and manufacturing efficiency. Gaston Lee handled American operations, managing the domestic market and potentially worldwide operations as well.
Their vision was ambitious—they wanted to offer collectors more variety, innovation, and value than what was currently available in the market. Starting a company to challenge an established leader like Department 56 was bold, but the Lee brothers believed there was room for competition in the rapidly growing collectibles market.
The Competitive Landscape
The competition between Lemax and Department 56 drove innovation across the entire industry. Department 56 had established the market with their premium ceramic villages, focusing on detailed craftsmanship and limited editions that appealed to serious collectors. Their villages commanded premium prices, with some pieces becoming highly sought-after collectibles worth hundreds or even thousands of dollars.
Lemax took a different approach. While maintaining quality standards with their own ceramic buildings, they focused on accessibility and innovation. The company introduced several key differentiators that set them apart from their competitor.
Lemax's Innovation Strategy
One of Lemax’s most significant innovations was their use of polyresin instead of ceramic for figurines and some accessories. This material choice offered several advantages: it was more durable, less expensive to produce, and allowed for much finer detail and more realistic figurines. While Lemax buildings themselves remained ceramic, like Department 56’s, the polyresin figurines brought a new level of realism and intricacy to village scenes. This meant Lemax could offer elaborate pieces at more accessible price points, opening the hobby to a broader audience.
The brothers also pioneered the use of animation and lighting effects in their villages. While Department 56 focused primarily on static buildings, Lemax introduced pieces with moving parts—Ferris wheels that actually turned, ice skaters that glided in circles, and Santa’s sleigh that appeared to fly. These animated features added a dynamic element that captivated collectors and their families.
Lemax also expanded beyond traditional Christmas themes more aggressively than their competitors. They developed villages for Halloween, creating the popular “Spooky Town” collection that debuted in 2000. Department 56 also launched a Halloween line around the same time period, showing how the competition between the brands pushed both companies to explore new seasonal markets. This diversification strategy helped build customer loyalty beyond the Christmas season.
Building a Collector Community
Both companies understood that their success depended on building passionate collector communities. Department 56 established a formal collectors’ club, offering exclusive pieces and fostering a sense of belonging among enthusiasts. Lemax followed suit, creating their own collector programs and attending trade shows and collector events.
The competition between the brands created a golden age for village collectors. Enthusiasts could mix and match pieces from different manufacturers, creating elaborate displays that combined the best elements from each brand. Some collectors remained loyal to one brand, while others appreciated the unique offerings of both companies.
The Market Expands
The success of Department 56 and Lemax attracted attention across the collectibles market. Department 56 itself expanded with multiple themed collections, including Dickens Village (their Victorian-themed line, similar to Lemax’s Caddington Village), Hawthorne Village, and numerous other categories. Licensed properties also became important, with Department 56 securing rights to Disney, Peanuts, and other beloved franchises, while Lemax focused on creating original designs with universal appeal.
Throughout the 1990s and 2000s, both companies expanded their product lines significantly. They introduced new architectural styles, from Victorian mansions to modern cityscapes, constantly pushing each other to innovate and offer collectors fresh options each season.
Challenges and Evolution
For many years, the miniature village market remained strong. International demand was particularly robust through the 2010s, with collectors around the world embracing these charming holiday traditions. However, by the late 2010s, international sales began to decline as shipping costs became prohibitively expensive, making it difficult for overseas collectors to purchase pieces affordably.
The domestic market faced more dramatic challenges beginning in 2021. Several factors converged to impact sales significantly. The SARS-CoV-2 pandemic disrupted manufacturing and created supply chain problems that made it difficult to get products to market. Economic policies that followed led to inflation, reducing consumers’ buying power for discretionary items like collectible villages. Retailers in the sector experienced steep declines, with some seeing sales drop 35 to 40 percent compounded annually from 2022 through 2024.
Both companies had to adapt to these new realities. Department 56 went through ownership changes, being acquired by private equity firms and eventually becoming part of Enesco Group. Lemax remained family-owned, with the Lee brothers maintaining their vision while navigating the challenging market conditions.
Both companies embraced e-commerce and social media to reach new audiences. They modernized their designs to appeal to contemporary tastes while maintaining the nostalgic elements that made villages appealing in the first place. LED lighting replaced traditional bulbs, making displays more energy-efficient and safer.
The Legacy of Competition
The competition between Lemax and Department 56 ultimately benefited collectors and the industry as a whole. The rivalry drove both companies to continuously improve their products, expand their offerings, and find new ways to capture the magic of the holiday season in miniature form.
Today, miniature village collecting remains a cherished tradition for millions of families. The sight of a carefully arranged village, with its tiny ceramic buildings glowing warmly, realistic polyresin figurines bringing scenes to life, and animated pieces adding movement and wonder, continues to evoke nostalgia and joy. Whether collectors prefer the premium craftsmanship of Department 56 or the innovative features of Lemax, they’re participating in a tradition that the Lee brothers helped shape and expand.
Conclusion
The story of Lemax and its competition with Department 56 is more than just a business rivalry—it’s a testament to how competition can drive innovation and expand markets. Jack and Gaston Lee saw an opportunity to challenge an industry leader and built a company that not only survived but thrived by offering something different.
Their success proved that there was room for multiple players in the miniature village market, each bringing their own vision and strengths. As families continue to unpack their village collections each holiday season, carefully arranging buildings and figures to create their perfect winter scenes, they’re participating in a tradition enriched by the competitive spirit and entrepreneurial vision of two brothers who dared to take on an industry giant.