Getty Images
Hello Kitty was created on November 1, 1974
Hello Kitty, arguably Japan's most beloved creation, is celebrating its 50th anniversary.
But all has not always gone well at Sanrio, the Japanese company behind the character. The company has had a spectacular journey of financial ups and downs.
Hello Kitty was ranked as the second highest-grossing media franchise in the world behind Pokémon, and ahead of Mickey Mouse and Star Wars.
Highlighting her global fame, Britain's King Charles wished her a happy birthday during the state visit to the United Kingdom by the Emperor and Empress of Japan in June.
In recent years, however, Sanrio struggled to make money, as interest in Hello Kitty waned.
Sanrio's two previous sales surges, in 1999 and 2014, were both driven by the character's popularity. But these increases in demand for the company's products were unsustainable, says Yasuki Yoshioka of investment firm SMBC Nikko.
“In the past, his performances have had many ups and downs, like it was a roller coaster,” Mr. Yoshioka said.
Sanrio
Tomokuni Tsuji took over as CEO of Sanrio four years ago
Then, in 2020, Tomokuni Tsuji inherited the role of boss of Sanrio.
He is the grandson of the company's founder, Shintaro Tsuji, and was only 31 at the time, making him the youngest CEO of a publicly traded Japanese company.
His grandfather then became president of Sanrio.
Under the leadership of the young Mr. Tsuji, Sanrio changed its marketing strategy for its stable of other characters.
“It’s not about diminishing Hello Kitty’s popularity but about increasing the recognition of others,” he says.
This caused Hello Kitty to lose the position of Sanrio's most popular character.
According to a customer survey, that spot is now occupied by Cinnamoroll – a blue-eyed white puppy with rosy cheeks, long ears and a tail that resembles a cinnamon roll.
Sanrio is no longer just about cute characters.
If Hello Kitty is Japan's ambassador of cute, then angry red panda Aggressive Retsuko – or Aggretsuko – channels the frustrations of an ordinary working girl.
The character, popular among Generation Z, first appeared in a cartoon series on Japanese channel TBS before becoming a global hit on Netflix.
Another unconventional character is Gudetama, or “lazy egg”, who lives with depression and delivers cold one-liners that reflect the dark realities of life.
Sanrio
Sanrio is no longer just cute characters
In addition to diversifying its characters, Sanrio has strengthened its marketing abroad and is now fighting more rigorously against counterfeits.
“We now use artificial intelligence to detect counterfeit products and make withdrawal requests,” explains Mr. Tsuji.
For its marketing strategy, collaborations with major brands – including Starbucks, Crocs and the LA Dodgers baseball team – have been key, he added.
“In addition to our own promotion, by collaborating with global brands, we try to have our characters on the market throughout the year, without too many breaks.”
Getty Images
Hello Kitty collaborated with the LA Dodgers, home of Japanese baseball sensation Shohei Ohtani.
In a society that places so much emphasis on seniority, Mr. Tsuji's last name was crucial to his ability to make major changes at Sanrio.
Nearly a quarter of Japan's listed companies, such as automakers Toyota and Suzuki and camera maker Canon, are run by members of the family that founded them.
The reason is cultural, according to Professor Hokuto Dazai of Nagoya University of Commerce and Business.
In Japan, home to the world's oldest continuous monarchy, “families and family businesses are highly recognized,” he says.
The master-servant relationship of the samurai period evolved into a relationship between the founding families and their employees, and “historically, commoners never fought for the top position.”
“This is also because Japan has a smaller pool of professional professionals to choose from,” says Professor Dazai.
“Companies tend to look for their next boss internally, including members of the founding family.”
Getty Images
King Charles wished Hello Kitty a happy birthday during the Japanese Emperor's state visit
Still, “it would be a lie if I said there was no resistance” from other company managers and employees, Mr. Tsuji said.
He also says he clashed with his grandfather over how to run the business.
“But one day I realized I was being arrogant and trying to convince someone 60 years older,” he says.
“After about a year, my grandfather told me to run the business the way I wanted, that he would leave it to me.”
The new boss's overhaul of the company is so far bearing fruit.
Two years after the younger Tsuji became chief executive, Sanrio was profitable again, in what analyst Mr. Yoshioka calls “a nice V-shaped recovery.”
Its share price has increased tenfold since 2020 and the company now has a market valuation of more than 1 trillion yen ($6.5 billion; £5 billion).
Getty Images
Hello Kitty is no longer Sanrio's most popular character
Outside of the boardroom and the stock market, an intriguing incident also occurred earlier this year.
Although Hello Kitty's true identity is relatively well-known in Japan, some overseas fans were shocked by comments from a Sanrio executive in July.
Speaking on US television, retail development director Jill Koch told viewers that “Hello Kitty is not a cat” but is in fact a British schoolgirl.
His comments sparked a flurry of posts on social media, with fans expressing shock and confusion at the revelation.
“Hello Kitty is Hello Kitty and she can be whoever you want her to be – she can be your sister, your mother, it can be another you,” Mr. Tsuji says.
Asked if he has any idea why his grandfather decided not to make her Japanese, Mr. Tsuji concludes: “London is an incredible city and was the envy of many Japanese girls.” , maybe that's one of the reasons they decided she was from London.”
This may not be the definitive answer her fans are looking for – but after all, Hello Kitty was created 14 years before young Tsuji was even born. Half a century after his creation, it's possible that the beloved character's origin story will continue to be shrouded in mystery for years to come.
Read more from Business Daily on BBC World Service. You can listen again via the World Service website or download the BBC Sounds app.
