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Hello Kitty, arguably Japan’s best-loved creation, is celebrating her 50th anniversary.
However, all has not always been well at Sanrio, the Japanese company behind the character. The business has experienced a spectacular journey of financial peaks and valleys.
Hello Kitty has been ranked as the second-highest grossing media franchise in the world, behind Pokémon, and ahead of franchises like Mickey Mouse and Star Wars.
Underscoring her global fame, Britain’s King Charles wished her a happy birthday during the state visit to the UK by Japan’s Emperor and Empress in June.
In recent years, though, Sanrio has struggled to generate profit as interest in Hello Kitty has waned.
“In the past, its performance had many ups and downs, as if it was on a rollercoaster ride,” says Mr. Yoshioka.
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Tomokuni Tsuji inherited the role as Sanrio’s boss in 2020.
He is the grandson of the firm’s founder, Shintaro Tsuji, and was just 31 at the time, making him the youngest chief executive of a listed Japanese company.
His grandfather became Sanrio’s chairman.
Under the younger Mr. Tsuji’s leadership, Sanrio revamped its marketing strategy for its other characters.
“It is not about lowering Hello Kitty’s popularity but boosting others’ recognition,” he says.
This change resulted in Hello Kitty losing the position of Sanrio’s most popular character.
According to a customer poll, that spot is now held by Cinnamoroll – a blue-eyed white puppy with pink cheeks, long ears, and a tail resembling a cinnamon roll.
Sanrio is also diversifying beyond cute characters.
If Hello Kitty is Japan’s ambassador of cute, the angry red panda Aggressive Retsuko (Aggretsuko) channels the frustrations of an ordinary working woman.
This character, popular among Gen Zers, first appeared in a cartoon series on Japan’s TBS Television before becoming a global hit on Netflix.
Another unconventional character is Gudetama, or “lazy egg”, who reflects dark realities of life with cold one-liners.
Sanrio
In addition to diversifying its characters, Sanrio has enhanced its overseas marketing and is taking measures to combat counterfeits.
“We are now using artificial intelligence to detect fake products and to make removal requests,” says Mr. Tsuji.
Key to its marketing strategy are collaborations with major brands, including Starbucks, Crocs, and the LA Dodgers baseball team.
“In addition to our own promotion, by collaborating with global brands, we are trying to maintain our characters’ presence in the market throughout the year,” he added.
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In a society that emphasizes seniority, Mr. Tsuji’s surname significantly facilitated his ability to implement major changes at Sanrio.
Almost a quarter of listed companies in Japan, including car makers Toyota and Suzuki as well as camera firm Canon, are managed by founding family members.
According to Professor Hokuto Dazai of Nagoya University of Commerce and Business, this trend is reflective of a cultural dynamic.
In Japan, a nation with the world’s oldest continuous monarchy, there exists a strong acknowledgment of families and family businesses.
The master-servant relationship from the samurai period has evolved into the connection between founding families and their employees, during which “historically commoners never fought over the top job.”
“This is also due to the smaller pool of professional executives in Japan,” adds Professor Dazai.
“Firms often look internally for their next leader, including members of founding families.”
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Still, “it would be a lie if I said there was no pushback” from other managers and employees in the company, Mr. Tsuji says.
He also notes that he clashed with his grandfather over management approaches.
“But one day I realized I was being arrogant, trying to convince someone 60 years my senior,” he shares.
“After about a year, my grandfather told me to run the company as I see fit – that he would leave it up to me.”
The revamp introduced by the new boss has been demonstrating positive results.
Within two years of Tsuji becoming chief executive, Sanrio was profitable again, which analyst Mr. Yoshioka labels “a beautiful V-shaped recovery.”
Its share price has risen tenfold since 2020, and the company currently boasts a market valuation exceeding one trillion yen ($6.5 billion or £5 billion).
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Outside the boardroom and stock market, an intriguing incident occurred earlier this year.
While Hello Kitty’s true identity is relatively well-known in Japan, some overseas fans were taken aback by comments from a Sanrio executive in July.
Speaking on US television, retail business development director Jill Koch revealed that “Hello Kitty is not a cat” but actually a British schoolgirl.
Her remarks generated a flurry of social media activity, with fans expressing their shock and confusion.
“Hello Kitty is Hello Kitty, and she can be whoever you want her to be – she can be your sister, your mother; she can represent another you,” states Mr. Tsuji.
When pressed about why his grandfather chose not to make her Japanese, Mr. Tsuji deduces, “London is an amazing city, and it was the envy of many Japanese girls, so that may be one of the reasons they decided she’s from London.”
It may not provide the definitive answer fans seek, but after all, Hello Kitty was created 14 years before Mr. Tsuji was even born. Half a century since her inception, it seems that the beloved character’s origin story will continue to be cloaked in mystery for years to come.
It seems like you’re looking at an excerpt from an article discussing the leadership changes and developments within Sanrio, the company famous for characters like Hello Kitty. The text highlights the leadership transition led by Mr. Tsuji, who took over from his grandfather, and the resulting positive changes in the company’s performance.
Here’s a brief summary of the key points:
- Leadership Transition: Mr. Tsuji began to lead Sanrio, navigating pushback from company stakeholders, including his grandfather.
- Generational Clashes: Tsuji acknowledged the difficulty of convincing someone with significantly more experience (60 years older).
- Encouragement to Innovate: Eventually, Tsuji’s grandfather gave him the freedom to run the company as he saw fit.
- Positive Results: Under Tsuji’s leadership, Sanrio successfully turned around its profitability, achieving what is described as a “beautiful V-shaped recovery.”
- Market Success: Since Tsuji’s appointment, Sanrio’s share price has increased tenfold, pushing its market valuation over one trillion yen.
The excerpt also includes images of King Charles and Hello Kitty, underscoring the character’s cultural significance and connection to events, such as a birthday celebration.
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