Hello Kitty, the adorable cartoon kitten adored worldwide, is celebrating her 50th anniversary this year, cementing her status as one of Japan’s most beloved creations.
Despite her enduring popularity, Sanrio—the company behind Hello Kitty—has experienced financial highs and lows that have shaped its journey.
Ranked as the second-highest grossing media franchise in the world, Hello Kitty falls just behind Pokémon and surpasses giants like Mickey Mouse and Star Wars.
This global appeal was underscored when Britain’s King Charles personally wished Hello Kitty a happy birthday during Japan’s Emperor and Empress’s state visit to the UK in June.
However, Sanrio has struggled in recent years as interest in Hello Kitty has waned.
Two previous sales booms—in 1999 and 2014—were driven largely by Hello Kitty’s immense popularity.
But these peaks were not sustainable, notes Yasuki Yoshioka from SMBC Nikko, an investment firm.
“In the past, its performance had many ups and downs, as if it was on a rollercoaster ride,” Yoshioka observed.
In 2020, Sanrio entered a new chapter under the leadership of Tomokuni Tsuji, grandson of Sanrio’s founder Shintaro Tsuji.
At 31, Tsuji became the youngest CEO of a publicly listed Japanese company, while his grandfather assumed the role of chairman.
Under Tsuji’s guidance, Sanrio has refocused its strategy to promote other characters alongside Hello Kitty.
“It is not about lowering Hello Kitty’s popularity but about boosting others’ recognition,” he explains.
This shift led to Hello Kitty relinquishing her title as Sanrio’s top character.
In a recent customer poll, Cinnamoroll—a blue-eyed white puppy with pink cheeks and cinnamon roll-like tail—emerged as Sanrio’s most popular character.
Sanrio has also introduced characters that move beyond the traditional “cute” mold.
Aggretsuko, an angry red panda representing the frustrations of working life, resonates strongly with Gen Z audiences and gained a global fanbase through its Netflix series.
Another standout is Gudetama, a “lazy egg” character embodying a humorous, apathetic outlook on life.
To strengthen its global reach, Sanrio has intensified overseas marketing and is addressing counterfeit products using artificial intelligence to identify and report fakes.
Collaborations with major brands like Starbucks, Crocs, and the LA Dodgers have been essential to keeping Sanrio characters relevant year-round.
“By collaborating with global brands, we are trying to have our characters in the market throughout the year without many breaks,” Tsuji says.
Tsuji’s family heritage has been crucial to his influence in a business environment where seniority is traditionally emphasized.
Nearly a quarter of Japanese publicly traded companies are still run by founding families, such as Toyota and Canon, reflecting the importance of legacy in Japan.
According to Professor Hokuto Dazai of Nagoya University of Commerce and Business, “there is strong recognition of families and family businesses,” a sentiment rooted in Japan’s historical master-servant relationships from the samurai era.
With the nation’s limited pool of executive talent, many companies prefer internal candidates, including those from founding families, for top positions.
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