Tomokuni Tsuji, the CEO of Sanrio and grandson of the founder, shares insights on Hello Kitty's remarkable journey to becoming a trillion yen icon. He discusses the brand's 50th anniversary, the challenges of counterfeits, and the importance of effective leadership. Tsuji highlights innovative marketing strategies and collaborations that have revitalized the brand, appealing to both dedicated collectors and newer generations. His focus on communication and adaptability has been key to maintaining Hello Kitty's relevance in a rapidly changing market.
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Quick takeaways
Under Tomokuni Tsuji’s leadership, Sanrio transformed from struggling financially to becoming a trillion yen company by diversifying its character lineup.
The global marketing strategy for Hello Kitty emphasizes collaborations with popular brands and tailored local promotions to enhance relevance.
Deep dives
The Origins and Success of Hello Kitty
Hello Kitty was created in 1974 by Japanese artist Yuko Shimizu as a character called Unknown White Cat, quickly becoming a cultural staple in Japan and beyond. The character's appeal is rooted in the Japanese concept of kawaii, or cuteness, which has propelled it to international fame, generating an estimated $84.5 billion in merchandise sales, placing it among the world's highest-grossing media franchises. With a presence in 130 countries and a diverse range of products, Hello Kitty has transitioned from a simple cat-like figure to a global ambassador of pop culture. Today, Hello Kitty remains a beloved icon, celebrated not only by children but also by adult collectors, including notable enthusiasts like retired police officer Masao Gunji, who owns a collection of over 5,000 Hello Kitty items.
Leadership and Company Reforms
Tomokunitsuji, the grandson of Hello Kitty's original creator, took over as CEO of Sanrio at just 31 years old and has focused on transformational reforms to rejuvenate the company. His leadership style has emphasized collaboration with his grandfather while also implementing fresh ideas to steer the company away from financial struggles. By hiring external talent to introduce new perspectives, he notably reduced the average age of the leadership team and initiated measures to diversify the company's character lineup. This strategic move not only strengthened profitability but also aimed to ensure that Hello Kitty's popularity could be complemented by other characters, thus minimizing market volatility.
Expanding Global Presence and Character Diversity
Sanrio has embarked on an extensive global marketing strategy, which includes collaborations with well-known brands like Crocs and Starbucks, enhancing Hello Kitty's visibility and relevance in various markets. Regional offices established in places like Singapore have allowed for tailored marketing efforts that resonate with local audiences, including an emphasis on e-commerce and social media promotion. The company plans not just to continue the legacy of Hello Kitty but also to develop a broader range of characters that reflect contemporary themes and challenges relevant to younger generations. Notably, characters like Aggretsuko and Gudetama have emerged, addressing issues from workplace stress to mental health, showcasing Sanrio's commitment to evolving its character roster for future audiences.
On the character's 50th birthday, we hear from the boss of the Japanese company which created her.
Sanrio CEO Tomokuni Tsuji took over from his grandfather who founded the company in Japan.
The company struggled to be profitable for years - we find out how under the leadership of Tomokuni Tsuji, the brand has grown to a trillion yen company, and speak about some of the challenges around counterfeits.
Produced and presented by Mariko Oi
(Image: A woman poses with Hello Kitty plushies at the exhibition CUTE in London, United Kingdom on January 24, 2024. Credit: Getty Images)
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