Shintaro Tsuji, founder and chief executive officer (CEO) of Hello Kitty creator Sanrio, has announced his retirement and will hand over the firm to his grandson.
In a statement on Friday, Sanrio announced that Tsuji will be retiring as its CEO on July 1, with his grandson Tomokuni Tsuji taking over the helm of the company. The firm, which created the famous character Hello Kitty, said the transition "ensure efficient decision making".
Brief history of Sanrio and Hello Kitty
Shintaro started the company as the Yamanashi Silk Center gift shop in 1960 but in 1973 changed its name to Sanrio. It became one of the first Japanese companies to see potential in the character licensing business, with Hello Kitty as the firm’s most popular and profitable character.
Hello Kitty was created in 1974 but only made her debut in 1975 on a vinyl coin purse. Since then, the cat-like figure has appeared on various items, from sneakers and paper towels to chopsticks and panini makers.
The character’s appeal was considered a big factor in the spread of Japan’s “kawaii” pop culture outside of the country. The word kawaii comes from the Japanese word “kawaisa,” which means “cuteness”.
The company has transformed itself into a giant in the retail and entertainment sectors, establishing amusement parks and restaurants in Japan, the US and the UK
In March 2019, Sanrio announced that it will partner with New Line Cinema and FlynnPictureCo. to create an English-language Hello Kitty film for global audiences, to be distributed by Warner Brothers.
Shintaro said: “Hello Kitty has long been a symbol of friendship and we hope this film will only serve to grow that circle of friendship around the world.”
The announcement coincided with the trend of U.S. and Japanese companies partnering to bring Japanese characters to hollywood, particularly with “Pokemon Detective Pikachu,” produced by The Pokemon Company, Legendary Entertainment, Toho Co. and Warner Brothers, and released in the US in May of that year.
Financial challenges
In recent years, Sanrio has faced challenges in expanding its licensing business, with the ratio of global royalty fees to sale falling by 11% in fiscal year 2019 compared with the previous year.
Furthermore, the company's earnings have been under pressure for years. Sanrio's net profits plummeted by 95% to 191 million yen for the year ended March compared with the previous year.
This was attributed largely to the decline in merchandise sales and the closure of its theme parks due to the coronavirus pandemic.
Sanrio recorded a sales decrease of 6.5% as its Sanrio Puroland theme park in Tokyo, also known as Hello Kitty Land, remained closed since it was shut down in February. It is scheduled for reopening on July 20.
Tomokuni Tsuji
The incoming CEO of Sanrio, Tomokuni Tsuji, has a special connection with the beloved character. Tomokuni shares the same birthday, November 1, as Hello Kitty who is 14 years older than the incoming chief.
According to fans, the new CEO is comparable to the Sanrio character Pompompurin, a beret-clad golden retriever. One fan wrote on Twitter that Tomokuni "was the perfect image for Sanrio."
