HELLO Kitty, a cute and cute character from Japan has a birthday on Friday (1/11). This round-headed, ribbon-accessorized pop icon is turning 50 years old. However, not everything is going well at Sanrio, the Japanese company behind the character. His business experienced spectacular financial ups and downs.
Thanks to her worldwide fame, British King Charles wished her a happy birthday during the state visit of the Emperor and Empress of Japan to England last June.
This character, created in 1974, is ranked second as the best-selling media franchise in the world after Pokémon, Mickey Mouse and Star Wars. In recent years Sanrio has struggled to make more money, as interest in Hello Kitty waned.
Yasuki Yoshioka of investment firm SMBC Nikko, said Sanrio’s previous sales spikes in 1999 and 2014 were due to the character’s popularity. However, the surge in demand for the company’s products is not sustainable.
“In the past, his performance experienced many ups and downs, like riding a roller coaster,” said Yoshioka, quoted by the BBC.
Seeing that the company’s development was not improving, in 2020, Tomokuni Tsuji was appointed to become chief executive at Sanrio. He is the grandson of the company’s founder, Shintaro Tsuji. At that time, Tomokuni was only 31 years old, making him the youngest chief executive in Japan.
Under the leadership of the much younger Tomokuni Tsuji, Sanrio changed the marketing strategy for its other characters. This resulted in Hello Kitty losing the position of Sanrio’s most popular character.
“This is not about decreasing Hello Kitty’s popularity but about increasing other people’s recognition,” Tomokuni said.
Based on customer polls, that position is now occupied by Cinnamoroll, a white, blue-eyed puppy with pink cheeks, long ears and a tail that looks like a roll.
Another character is Gudetama, or “lazy egg”, who lives with depression and utters cold sentences that describe the dark realities of life.
In addition to diversifying its characters, Sanrio has also increased its overseas marketing and is now tackling product counterfeiting more strictly.
“We now use artificial intelligence to detect counterfeit products and submit takedown requests,” said Tomokuni Tsuji.
Tomokuni added to its marketing strategy by collaborating with several big brands, including Starbucks, Crocs, and the LA Dodgers baseball team.
“In addition to our own promotions, by collaborating with global brands, we strive to have our characters on the market throughout the year without much pause,” he added.
In a society that places great emphasis on seniority, Mr. Tsuji’s last name is crucial to his ability to make major changes at Sanrio. Nearly a quarter of Japan’s listed companies, such as car manufacturers Toyota and Suzuki and camera company Canon, are managed by members of the families who founded them.
According to Professor Hokuto Dazai from Nagoya University of Commerce and Business, the reason is cultural. “In Japan, the country with the world’s oldest surviving monarchy, there is a strong recognition of the family and family businesses,” he said.
The master-servant relationship of the samurai era has shifted to one between the founding family and their employees, and historically commoners have never fought for top positions.
“This is also because Japan has fewer professional executive options. Companies tend to look for their next boss internally, including members of the founding family,” Dazai added.
Tomokuni admitted that he often clashed with his grandfather about how to run the company and in the end he was able to run the company according to his wishes.
“But one day I realized I was being arrogant, trying to convince someone 60 years older. After about a year, my grandfather told me to run the company the way I wanted, that he would hand it over to me,” he concluded.
The business overhaul carried out by the new boss has so far been considered fruitful.
In the two years since the younger Tsuji became chief executive, Sanrio has returned to profitability. Its share price has risen tenfold since 2020 and the company now has a stock market valuation of more than one trillion yen (US$6.5 billion).
Beyond the boardroom and the stock market, there was also an interesting incident earlier this year. Although Hello Kitty’s true identity is well known in Japan, some overseas fans were shocked by comments from a Sanrio executive last July.
Speaking on US television, retail business development director Jill Koch told that “Hello Kitty is not a cat” and is actually a British schoolgirl.
His comments sparked a flurry of posts on social media, with fans expressing their shock and confusion about the phrase.
“Hello Kitty is Hello Kitty and she can be whoever you want, she can be your sister, your mother, she can be your other self,” said Tomokuni Tsuji.
Young Tsuji concluded, that London was an amazing city and many Japanese girls were jealous of it, so maybe that was one of the reasons they decided that the girl was from London. (BBC/Z-3)
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**Interview with Tomokuni Tsuji, CEO of Sanrio**
**Interviewer:** Thank you for joining us today, Tomokuni. Congratulations on Hello Kitty’s 50th birthday! It’s quite a milestone. How do you personally feel about this moment in the brand’s history?
**Tomokuni Tsuji:** Thank you! It’s an honor to celebrate such an iconic character. Hello Kitty has brought joy to millions, and we owe it to her legacy to continue evolving. While we celebrate, it’s essential to recognize the challenges we face as a brand and a company.
**Interviewer:** Speaking of challenges, you’ve mentioned that Sanrio has experienced ups and downs in recent years. Can you elaborate on what those challenges have been?
**Tomokuni Tsuji:** Yes, Hello Kitty is a beloved character, but interest in her has waned somewhat. Past surges in sales have also proven unsustainable. We’re in a market that requires constant innovation and adaptation to shifting consumer preferences.
**Interviewer:** With you becoming the youngest CEO in Japan at just 31, how has your leadership impacted Sanrio’s direction, particularly in terms of marketing?
**Tomokuni Tsuji:** My goal has been to diversify our character portfolio while ensuring that Hello Kitty remains a beloved figure. While her popularity is still strong, we believe in elevating other characters like Cinnamoroll and Gudetama. This isn’t about diminishing Hello Kitty’s status; it’s about expanding our brand’s appeal.
**Interviewer:** Cinnamoroll has recently overtaken Hello Kitty in popularity. What has driven this shift?
**Tomokuni Tsuji:** We’ve invested in creative marketing strategies that showcase our other characters more prominently, responding to customer preferences as they evolve. The engagement with younger audiences has been particularly rewarding.
**Interviewer:** You mentioned leveraging technology to tackle counterfeit products. Can you share how artificial intelligence plays a role in your strategy?
**Tomokuni Tsuji:** Absolutely. We’re employing AI to detect counterfeit goods more efficiently, allowing us to act quickly against infringers. Protecting our intellectual property is crucial as we expand globally.
**Interviewer:** Collaboration seems to be a key aspect of your strategy. What are some successful partnerships you’ve formed, and how do they benefit Sanrio?
**Tomokuni Tsuji:** We’ve collaborated with brands like Starbucks, Crocs, and sports teams like the LA Dodgers. These partnerships allow us to keep our characters relevant and integrated into everyday life, providing fans with unique experiences year-round.
**Interviewer:** As a member of the founding family, do you feel any pressure or expectations in leading Sanrio?
**Tomokuni Tsuji:** There is a certain weight that comes with the family name, and I embrace that responsibility. Change can be met with skepticism, but our commitment to innovation ensures that we respect our heritage while also paving the way for the future.
**Interviewer:** how do you see the future of Sanrio and its iconic characters?
**Tomokuni Tsuji:** The future is bright! We’ll continue to innovate and adapt, ensuring our characters evolve with their fans. I believe there is still much more to explore, even with Hello Kitty, and I’m excited to lead Sanrio into its next chapter.
**Interviewer:** Thank you for your time, Tomokuni. We look forward to seeing how Sanrio continues to evolve under your leadership!
