Hello Kitty, a beloved figure in Japan, is marking her 50th anniversary. However, the journey of her creator, Sanrio, has been filled with significant financial challenges and triumphs. Hello Kitty holds the distinction of being the second-highest grossing media franchise globally, trailing only behind Pokémon and surpassing renowned icons like Mickey Mouse and Star Wars. Her widespread acclaim was highlighted when King Charles of Britain extended birthday wishes during a state visit by Japan’s Emperor and Empress in June.

Despite this fame, Sanrio faced difficulties in recent years as interest in Hello Kitty began to decline. Previous spikes in sales occurred in 1999 and 2014, fueled by her popularity, but these surges were not long-lasting, according to Yasuki Yoshioka from investment firm SMBC Nikko. He likens the company’s past performance to a rollercoaster ride filled with ups and downs.

In 2020, Tomokuni Tsuji took over leadership at Sanrio at just 31 years old, making him the youngest CEO of a publicly traded Japanese company. His grandfather Shintaro Tsuji remained as chairman. Under Tomokuni’s guidance, Sanrio revamped its marketing approach to promote other characters alongside Hello Kitty instead of solely focusing on her. As a result, Cinnamoroll—a white puppy with blue eyes—has now become the most popular character among fans.

Sanrio has broadened its character lineup beyond just cute figures. While Hello Kitty remains an ambassador of cuteness, characters like Aggretsuko—a red panda expressing workplace frustrations—have garnered popularity among younger audiences. Additionally, Gudetama, a “lazy egg,” reflects more profound themes such as depression through humor.

To enhance its market presence and combat counterfeit products effectively, Sanrio has adopted artificial intelligence tools for detection and removal requests. Collaborations with major brands like Starbucks and Crocs have also been pivotal for their marketing strategy, ensuring their characters maintain visibility year-round.

Tomokuni Tsuji’s surname has played a significant role in his ability to implement changes at Sanrio. In Japan, family-run businesses are prevalent due to cultural respect for founding families. This dynamic often influences successor selection within companies.

However, Tsuji faced resistance from other employees regarding his management style and had disagreements with his grandfather about running the company. Yet he learned to navigate these challenges when granted autonomy to lead as he saw fit.

The changes introduced by Tomokuni have yielded positive results; within two years of his leadership, Sanrio returned to profitability and saw its stock price increase significantly. An interesting moment occurred earlier this year when a Sanrio executive revealed on U.S. television that Hello Kitty is not actually a cat but rather a British schoolgirl. This revelation surprised many fans worldwide.

Tomokuni suggested that London’s allure might have influenced Hello Kitty’s backstory but acknowledged that the character’s origins may remain enigmatic for years to come as she continues to capture hearts globally.