Hello Kitty, arguably Japan’s best-loved creation, is celebrating her 50th anniversary. However, financial peaks and valleys have marked the journey of Sanrio, the company behind the character. Hello Kitty ranks as the second-highest grossing media franchise globally, trailing only Pokémon and surpassing icons like Mickey Mouse and Star Wars.
Recently, even King Charles wished her a happy birthday during a state visit to the UK by Japan’s Emperor and Empress. Despite her fame, Sanrio has faced challenges, with declining interest in Hello Kitty leading to financial struggles. Previous sales surges in 1999 and 2014 were not sustainable, according to Yasuki Yoshioka of SMBC Nikko. He describes Sanrio’s past performance as a “rollercoaster ride.”
At just 31, Yasuki became the youngest CEO of a listed Japanese company, taking the helm from his grandfather, Shintaro Tsuji, who remains Sanrio’s chairman. Under Yasuki’s leadership, Sanrio shifted its marketing strategy. “It’s not about lowering Hello Kitty’s popularity but about boosting others’ recognition,” he explained.
This resulted in Hello Kitty losing her status as the company’s top character, now held by Cinnamoroll, a blue-eyed white puppy. Sanrio is also diversifying beyond cute characters. While Hello Kitty embodies Japan’s “kawaii” culture, other characters like Aggretsuko channel the frustrations of modern life, resonating with Gen Z.
Gudetama, the “lazy egg,” humorously reflects darker realities. In addition to character diversification, Sanrio has ramped up its international marketing and is cracking down on counterfeits using AI technology. Collaborations with major brands like Starbucks, Crocs, and the LA Dodgers have been key to maintaining visibility year-round. Yasuki’s surname has aided his ability to drive change within the family-run business.
In Japan, many companies, including Toyota and Canon, are managed by founding families, a cultural norm rooted in historical hierarchies. Professor Hokuto Dazai of Nagoya University explains that Japan’s smaller pool of professional executives often leads firms to promote from within. Despite some resistance from other managers, Yasuki learned to balance his ideas with the wisdom of experience.
After a year of navigating differences with his grandfather, he was given the green light to run the company as he saw fit. Yasuki’s changes have paid off. Within two years of his leadership, Sanrio became profitable again, marking what Yoshioka calls a “beautiful V-shaped recovery.”
The company’s share price has surged tenfold since 2020, now valued at over a trillion yen ($6.5 billion). Earlier this year, an interesting revelation about Hello Kitty’s identity surprised fans. Jill Koch, a Sanrio executive, stated on US television that “Hello Kitty is not a cat” but rather a British schoolgirl.
This sparked confusion and debate on social media. Yasuki remarked that “Hello Kitty can be whoever you want her to be.” When asked why the character wasn’t made Japanese, Yasuki suggested that London, seen as a city of envy by many Japanese girls, might have influenced the decision. As Hello Kitty marks her 50th anniversary, her origin story remains a charming mystery, echoing the timeless appeal of the beloved character. 4o mini
