Tomokuni Tsuji: As the Successor to the Original "Kawaii" Culture

After graduating from Keio University, I worked at another company. I grew up surrounded by characters since I was a child and thought I would eventually join Sanrio, but I expected it to be a bit further in the future. However, my father passed away suddenly in 2013, and that led me to join Sanrio. Before he passed, my father used to ask me, "You're going to join (Sanrio) someday, right?"

When I first joined, overseas sales accounted for a large percentage of revenue, and the reputation was that "Hello Kitty is in every country." I started in the accounting department in my first year, and because I had experience at another company, I could see both the good and bad parts of the company. After that, for the seven years until I became president, revenue and profits continued to decline, so I had a strong desire to reform things somehow.

Then, the COVID-19 pandemic hit right at the timing of my appointment as president in 2020. People tell me it must have been difficult, but during this time, I was able to communicate thoroughly with my predecessor (my grandfather, the founding president and current chairman Shintaro Tsuji) to push forward reforms. The business succession went smoothly, and it actually turned out to be good timing.

Around 2020, when I became president and started working on reforms, I think the employees also felt a desire to try various new things. Previously, character creation was driven by design, but we held repeated discussions to create new patterns—for example, deciding on a design because we wanted to create a specific type of character. We also thought about designs with clear goals, such as what kind of names would be good for global expansion.

The idea for an online voting system also came from the NEXT KAWAII PROJECT. I think establishing a new specialized department for IP (Intellectual Property) creation was a big factor. The idea of expanding the range of character creation methods also emerged as part of our organizational culture reform.

The voting system is an important element for increasing enthusiasm. Ultimately, a character named "Hanamaruobake" took first place and was set to debut. I believe that generating enthusiasm and making people smile through this project is one way to aim for Sanrio's corporate philosophy, the goal of "Everyone Getting Along."

We are currently trying to transform from a character company into a global entertainment company. We want to be a company that creates smiles at all times. In that respect, the "NEXT KAWAII PROJECT" was a good project, despite having both pros and cons.

Since only the first-place character can debut, we have to take into account the feelings of those who voted for other characters. However, rather than taking a pessimistic view of the fact that some people feel disappointed, I want to launch the next project by building on that one.

There is an idea to open a limited-time cafe for the characters ranked 1st through 10th, and there is a possibility that the 2nd place "Kumalino" or 3rd place "Puri Puri Unpies" will appear in other projects.

Sanrio Puroland has become a place where a wide range of people can visit. It seems some people come for the actors, not just the characters. Recently, some people bring anime acrylic stands and take photos with Sanrio Puroland in the background. While we provide ways to enjoy it as entertainment, I think the range of visitors has expanded by having the customers themselves think of ways to enjoy it.

A wonderful culture has accumulated while the founder, my predecessor, served as president for a long time. Ultimately, "Everyone Getting Along" is our final goal, and it is our role to embody this.

If we seriously want to create a world where "everyone gets along," we must make a serious effort to make people smile. Sanrio has created many good things, but over the 60 years we've been operating, I think there were also parts that weren't so good.

If we don't improve those areas, things will remain half-hearted. That's why I rebuilt the vision, mission, and values at the time of the business succession, so that employees can also feel a real sense that they are creating smiles. I mentioned evolving into an entertainment company, and in aiming for "Everyone Getting Along," I want to sublimate the good things we have built up in the entertainment field.

That's right. Entertainment has parts that change with the times, and consumers also evolve. We want to respond to these changes as well.

When I joined the company, character culture was booming in Europe and the US, and it was our most successful period. Overseas celebrities wore Hello Kitty, which sparked a boom. Furthermore, we strengthened our licensing business and expanded the scope of our operations. On the other hand, this also made us think about branding in the true sense.

When you handle a licensing business, licensee companies put Hello Kitty products on their store shelves. However, the scary part of the licensing business is that as soon as a company decides "that character is old news," they stop using it. When characters disappear from store shelves, people who see that get anxious and wonder "what happened?", which leads to a sudden downward trend.

A period of decline will eventually come. We must firmly conduct promotions and events to suppress that. However, at that time, Hello Kitty was the only character supporting us. Because we invested resources into license sales and didn't reach the option of branding afterward, we experienced a downward trend once after the boom.

To avoid repeating that, we implemented digital measures during the COVID-19 pandemic. As a result, I think a trend of people saying "Hello Kitty is great" has been created again. We have now switched to a method that circulates the licensing business and branding, and I believe this will allow us to expect steady growth.

At that time, we were involved in various businesses such as movies, publishing, and theme parks. I think that also connects to the vision of creating new smiles.

Just selling Hello Kitty goods only creates smiles around those items, but with a movie, you can create new smiles among fathers and mothers who go to see it together, or among friends who can discuss the work. We are also looking to expand our field now, such as considering entering the education sector.

I think Sanrio is ultimately a social communication company. We had the slogan "Small Gift Big Smile." We now have the vision "One World, Connecting Smiles.", and I believe that not letting that smile end there, but creating a chain so that even a customer who comes alone can smile, leads to "Everyone Getting Along."

Such a vision will create new businesses for Sanrio in the future. We want to be a creative company, and we want to be a company where what we want to do can lead to smiles.

What I find amazing when looking back at the company's history is that our corporate philosophy is "Everyone Getting Along," something that everyone wishes for. That is likely why we were able to expand into the fields of film and literature. Originally, making goods might have been enough, but I think it was very important for the founder to convey that message.

The Chairman is from the generation that experienced the war, and I have heard stories from that time dozens of times. When the Chairman first started the business, he began the predecessor, Yamanashi Silk Center, with the desire to "eliminate war." Even back then, he had the desire to spread "Everyone Getting Along" to the world. Movies and poetry collections were likely part of that.

On the other hand, now that there are large film companies and publishers, it would be difficult to convey our message using the same methods. Today, we have characters like Hello Kitty and can do business globally. While pursuing entertainment without narrowing those possibilities, there may be a chance that we will handle movies or publishing again in the future.

What people find cute varies from person to person, but it's very good that it has become accepted overseas. It's not "pretty," "cute," or "beautiful." It's difficult to define, but Sanrio has its own version of "kawaii," and when that matches with the customer, a smile is born.

I believe there is great meaning in making one person smile and continuing to connect those smiles for the sake of "Everyone Getting Along."

Experiences where normal life is threatened by things like war are actually happening in the world today. Rather than just speaking out in direct opposition to that, I think our final goal is to create smiles to resolve the fundamental causes.

I went from Chutobu Junior High School and the high school to the university. It was good that I could take various classes in the Major in Sociology in the Faculty of Letters. Among them, the psychology classes were interesting. Looking back now, thinking about what the other person is thinking is an important point in business as well.

I think so. For example, it lives on in terms of setting strategies in business or doing something with business partners, and it is also important in building relationships with employees.

When I became president and had the opportunity to interview all employees, I would wonder where this person's true intentions lay, and at those times, I would remember what I learned at university.

When people hear about business succession within a founding family, I think they feel various things, but when I think about communication with my predecessor and the employees, I think what I studied has been useful.

Fifty years makes her quite a bit senior to me, but Hello Kitty and I happen to share the same birthday (laughs). I think a character that lasts for 50 years wouldn't emerge without great effort and something miraculous at work.

The following year, 2025, My Melody and Little Twin Stars will also celebrate their 50th anniversaries, but it would be difficult to try to create a new character that lasts for 50 years from now on. Whether it's Hello Kitty or My Melody, people first became familiar with them through physical goods. I also used Sanrio character goods when I was a child, but at that time, there weren't many other goods like that. I think the fact that they were items for daily use was a big factor for Sanrio.

It's because of that attachment to things used every day that there are people who love them. Because there are various customers, they will continue forever. I think this is a strength that started from physical goods.

Conversely, it's hard to start from physical goods now; it's an era where you have to sell the character itself first or people won't buy them. To that end, in addition to traditional methods, I think it's important for us to incorporate modern methods and keep the characters that have lasted this long alive for another 50 years.

Taking the 50th anniversary of Hello Kitty's debut as an opportunity, I want to add new elements so that Hello Kitty can be with everyone for eternity. Also, at such a timing, I want Sanrio to transform as an entertainment company, so I hope you will keep an eye on us.