The allure of Hello Kitty cannot be denied as it captures the hearts of young and old, male and female alike and it transcends across generations. Sanrio doesn’t need any introductions and the company is making new changes to its strategies which I believe would be beneficial in the long term. It is changing its business model as it moves away from product licensing to space licensing. Increasingly it is going to manufacture its own products rather than through licensing which is a good move, as we can all remember what happened to Pierre Cardin which ultimately undermined its brand value.
However the latest earnings release did not hit the mark as sales in North American and Europe were blah, domestic sales went on a plateau and Asian sales while good did not lift the company. That surprised me as Sanrio is celebrating its 40th year anniversary this year …