Hello Kitty, widely considered Japan’s most beloved creation, is marking her 50th anniversary. However, Sanrio, the company behind her, has experienced significant financial ups and downs throughout its history.
Ranking as the second-highest-grossing media franchise globally, Hello Kitty outperforms even icons like Mickey Mouse and Star Wars, trailing only Pokémon. Her worldwide popularity was highlighted when King Charles extended birthday wishes during the state visit of Japan’s Emperor and Empress in June.
Despite this acclaim, Sanrio has faced financial challenges in recent years, with dwindling interest in Hello Kitty. Previous sales spikes in 1999 and 2014 were fueled by her popularity, but these increases were not lasting, according to Yasuki Yoshioka from investment firm SMBC Nikko. “The company’s performance has resembled a rollercoaster ride,” he states.
In 2020, Tomokuni Tsuji, the grandson of Sanrio’s founder Shintaro Tsuji, took over as CEO at just 31 years old, making him the youngest chief executive of a listed Japanese company. His grandfather stepped into the role of chairman. Under Tomokuni’s leadership, Sanrio revamped its marketing strategy to elevate the profiles of other characters rather than solely relying on Hello Kitty. This shift has led to Cinnamoroll, a white puppy character, becoming the most popular among consumers.
Sanrio’s offerings have also diversified beyond its cute characters. While Hello Kitty embodies Japan’s cute culture, Aggretsuko, an angry red panda, resonates with the everyday struggles of working women. This character gained popularity through a TBS Television cartoon before achieving global success on Netflix. Another notable character is Gudetama, or “lazy egg,” who humorously expresses the gloom of life.
To strengthen its market position, Sanrio has improved its international marketing and is tackling counterfeits more aggressively using artificial intelligence to identify fake products. Collaborations with major brands such as Starbucks, Crocs, and the LA Dodgers have been central to this strategy, allowing their characters to maintain a presence throughout the year.
Culturally, Tomokuni Tsuji’s surname has helped him navigate changes at Sanrio, as many listed Japanese companies, including Toyota and Canon, are managed by founding family members. According to Professor Hokuto Dazai from Nagoya University, there is a strong cultural inclination toward family-run businesses in Japan. He notes that historical ties between families and their companies have led to a preference for promoting from within, often involving founding family members.
Despite this, Tomokuni faced resistance from some employees and managers, as well as differences with his grandfather on company direction. He acknowledged his initial arrogance in attempting to persuade someone with six decades more experience. After some time, his grandfather granted him the autonomy to manage the company.
The changes implemented by Tomokuni have yielded positive results. Within two years of his taking charge, Sanrio returned to profitability, which Yoshioka describes as a remarkable “V-shaped recovery.” The company’s share price has increased tenfold since 2020, resulting in a market valuation exceeding one trillion yen (approximately $6.5 billion; £5 billion).
In an amusing twist, a Sanrio executive’s comments earlier this year sparked surprise among fans. Jill Koch, speaking on U.S. television, revealed that “Hello Kitty is not a cat” but rather a British schoolgirl, leading to widespread confusion online. Tomokuni remarked, “Hello Kitty is whoever you want her to be,” suggesting that her origin story remains open to interpretation. When asked why the character was not made Japanese, he speculated that London’s allure might have influenced the decision, acknowledging that the character was created 14 years before he was born. As Hello Kitty celebrates her 50th anniversary, her origins may continue to be a delightful mystery for years to come.
