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

After graduating from Keio University, I worked at another company. I grew up surrounded by characters from a young age and thought I would eventually join Sanrio, but I thought it would be a bit further in the future. However, my father passed away suddenly in 2013, and this 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, 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 also went smoothly, so it was actually good timing.

Around 2020, when I became president and began working on reforms, I think the employees also felt they wanted to try various new things. Until then, character creation was based on design first, 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 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 its debut was decided. I believe that building enthusiasm and making people smile through this project is one way to reach Sanrio's corporate philosophy goal of "Getting Along Together."

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 hope to launch the next project by building on that one.

There is an idea to open a cafe for a limited time featuring the characters from 1st to 10th place, 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 take photos with anime acrylic stands against the backdrop of Sanrio Puroland. By providing ways to enjoy it as entertainment while also letting customers think of their own ways to have fun, I think the range of visitors has expanded.

A wonderful culture has accumulated while the founder, my predecessor, served as president for a long time. Ultimately, "Getting Along Together" 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 course of 60 years, 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 recreated 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 "Getting Along Together," 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 created 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 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 a character disappears from stores, people who see that become anxious, wondering "what happened?", which leads to a sudden downward trend.

A period of decline will eventually come. We must conduct solid 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 afterwards, 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. Now, we have switched to a method that circulates the licensing business and branding, and through this, I believe we can expect steady growth.

At that time, we were involved in various businesses such as film, 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 a movie can create new smiles among fathers and mothers who go to see it together, or friends who can talk about the work. We also want 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." 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 "Getting Along Together."

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 "Getting Along Together," something 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 sentiment.

The chairman is from the generation that experienced the war, and I have been told 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." Since then, he had a desire to spread "Getting Along Together" 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 we handle film or publishing again in the future.

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

Experiences where normal life is threatened by war and such are actually happening in the world today. Rather than just opposing it head-on, I think our final goal is to create smiles to solve 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 as a 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 a 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 employees, I think what I studied has been useful.

Fifty years makes her quite a bit senior to me, but it just so happens that I share the same birthday as Hello Kitty (laughs). I think a character that lasts for 50 years can only emerge if some kind of miracle is at work on top of tremendous effort.

In 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, we 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 such goods. I think the fact that they were items for daily use was a big factor for Sanrio.

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

Conversely, nowadays it's hard to start from goods; it's an era where you have to sell the character itself first before people will buy them. To that end, in addition to traditional methods, I think it's important for us to incorporate modern methods to keep the characters that have continued so far alive for another 50 years.

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