Hello Kitty and Global Popularity - Essay Example

Hello Kitty and global popularity (Insert Name of the Student) (Insert Name of the Instructor) (Insert Name of the Course) (Insert Code of the Course) (Insert Submission Date) Introduction The Sanrio Incorporation was started in 1960 by Shintaro Tsuji in Japan as a trinket maker. Shintaro is the president and CEO of the company. The company has since evolved to a multi-billion global company with characters such as Little Twin Starsand, Hello Kitty, and My Melody being the face of their products. Hello Kitty was introduced in 1974 and is now the flagship brand of the company. Though it was initially created for the 5 to 15 year olds, its appeal has widened to include women of up to age 35. Its simple moon shaped feline face that bears no mouth; a few whiskers and a signature red bow tie on the head have pushed it to attain mega brand status and a fashion icon globally. The Hello Kitty brand is said to bring Sanrio Inc. revenues of about US$0.5 billion through franchise fees annually. Fashion houses in Paris have gone as far as endorsing pop stars such as Christina Aguilera and Mariah Carey as brand ambassadors (Bremner, 2006). The brand is marketed though licensees and a few direct retailers such as M&S, Oysho, Zara and H&M. In 2009, Hello Kitty marked its 35 year anniversary through a Europe tour in Stockholm, Paris, Barcelona, Milan and London. In London, the celebrations were marked by a high-tea high-end fashion event at a luxurious eatery known as Sketch. In Paris, Hello Kitty was featured in Colette a luxurious boutique. In Stockholm, it featured in events by the fashion house H&M and UNICEF (Phillips, 2010). The celebrations crossed over to America in Los Angeles at a free event where over 80 artists expressed their own versions of Hello Kitty. The celebrations were featured in the two continents since they form the brands main market besides Japan (Hsu, 2010). It has however traversed the globe and won over high loyalty among its consumers. With over 50,000 products bearing the icon and over 4000 department stores in America alone, this paper explores the reasons as to why it has gained such global popularity. Beyond the brand name One of the reasons as to why Hello Kitty has gained global popularity is that the brand appeal goes beyond the commercial aspects of the product. It embodies the Japanese obsession with cuteness known as Kawaii meaning Japanese cute. It can be described as sweet, adorable, inexperienced, gentle and genuine; aspects associated with children and women (Bryce, 2004). This explains why women and children relate to it globally. It is an obsession that goes beyond children and women to include the government. The Japanese government in 2004 and 2008 issued Hello Kitty stamps and appointed cute ambassadors known as Kawaii Taishi. Japan’s cute is similar to the western world’s cool. Takashi Murakami in Yano (2009) describes it as pink globalisation. It is the Japanese new form of soft power as it tries to emerge from the cover of the western world. It is the new sub culture being exported to the rest of the world as a signature associated with Japan. Murakami describes the hello Kitty as having a sexual undertone that explains the craze associated with it in New York fashion houses. It is a feminised character that appeals to women and that is why it continues to gain global popularity among women. The Hello Kitty is associated with specific colours that carry special meanings. Lavender, green, yellow, pink and red are the core Hello Kitty colours and they represent sweet, wish, heartfelt, cute and friendship respectively. According to Yamaguchi, official designer of Hello Kitty in Phillips (2004) these colours represent such messages to different people and cultures around the world. They have since designed the logo to embody this perspective. It is therefore not a Japanese product per se but a global brand. According to Bryce (2004) globalisation has brought about transculturation. The colours and the cuteness of the Japanese have been adapted by other cultures and personalised. In the western world the childish innocence is seen in low hip trousers coupled with a flowery camisole laced top and high heels in a mixture of sexual maturity (Bryce, 2004). The market diversification to include the Hello Kitty icon in products such as rings and make-up adds to this interplay of cuteness and maturity and thus it is gaining more global appeal among adults. EMEA, Sanrio’s president Lanzi says that it intends to make Hello Kitty a lifestyles brand not just a character (Phillips, 2004). The founder saw the character as the Japanese cat that was bound to override the success of the American mouse implying the popularity of Mickey Mouse. Therefore, it has been in the centre of the company to go global right from inception. The company licensed various corporations around the world in the 2000s that carry its signature icon in their products (Yano, 2009). It has licensed a wide variety of products ranging from clothes, shoes, cosmetics, jewellery, fragrances, confectionery and many more. They actually have no factories of their own but rather organise their own production in partnership deals and licensing. They have their own department stores as well as that of their licensees thus reaching a wider market. Part of the success of this brand in foreign markets is localisation. For example, in India the Hello Kitty bears a bindi on its forehead. The commercialisation of Hello Kitty into various consumer products has enabled marketers to play around with the icon to make it seem witty, harmless, comical and intriguing. Hoshino in Bryce (2004) asserts that the consumer has become fictitious and characters like Hello Kitty with no mouth and little eyes on a big head elicit some form of amusement and intrigue that brings smiles. Therefore, the trend is moving from the traditional meaning of cute as weak to artificial meanings as manufacturers deem fit. Its products can be found in popular stores around the globe with products targeting children, teens and young women. It is these partnerships that are credited to its global success since almost every product has the icon and the distribution is abundant and right at the consumers face. The next chapter looks at some of these licensed or partnership products. The Sanrio Inc. is diversifying its marketing campaign from the popular media and print channels to social media for its flagship Hello Kitty brand. In 2012, the Hello Kitty page hit the 10 million likes mark. This is great marketing campaign achievement as very few global corporate have been able utilise social media marketing successfully. The only companies that have hit the mark are Nike Football, Levi’s, Lacoste, Converse, Burberry, and Adidas. This shows just how much loyalty the brand elicits globally. The company’s target market is girls and women aged between six and thirty five of whom they claim to have about 87% brand awareness. Facebook’s main demographics being this age group, it may explain the high number of likes and the increasing global appeal (“Hello Kitty hits 10 million “likes” on Facebook, 2012). Sanrio Inc. has embarked on a corporate social responsibility program with its Hello Kitty for president campaign that supports the American Red Cross Society in disaster rescue missions such as Hurricane Sandy. From the sales revenue generated from Hello Kitty merchandise at the Hello Kitty’s campaign headquarters pop-up shop, the brand donates 100% to American Red Cross. The presidential merchandise includes signature bows, key chains, t-shirts and many more. It also supports a non-profit writing centre in Washington DC, USA known as 826 DC. This is supported from sales revenue generated from Hello Kitty cupcakes and t-shirts sold at Georgetown Cupcake. The centre aims to educate students aged between six to eighteen on expository writing skills and programming (“The Hello Kitty for presidential campaign announces support of the Red Cross and amp; 826 DC,” 2012). Such efforts endear the company to consumers and increases customer loyalty. This is also a reason as to the growing global popularity. Hello Kitty Diamonds The popular Taiwanese jeweller Just Gold Just Diamond is banking on Hello Kitty’s brand loyalty to attract young Taiwanese women. The jeweller has signed up celebrity endorsements with Hong Kong Pop-Duo Twins to increase the appeal of the jewels crafted in the Hello Kitty motif since the band is also popular among the Taiwanese women. The main target group for this jeweller is women aged twenty and above. This age bracket is brand conscious and want to look fashionable yet they do not have the money to spend on such luxury goods as diamonds. The company has thereby lowered the price to US$160 which according to Taiwan standards is cheap for diamonds. The marketing strategy for the company is banking on the cult like euphoria of the Kitty brand among young women and teenagers, the celebrity status of the pop-duo twins and the low price of the diamond collection so as to attract the 20-39 year olds. The reason why they target women according to Hui; brand manager at Just Gold Just Diamond is that about 70% of Taiwan diamond sales are by women and the figure is expected to rise with the economic boom in the region (Hargrave-Silk, 2005). Hello Kitty on Airlines EVA Air a Taiwanese airline has taken the Hello Kitty brand appeal further by adding a Hello Kitty theme to some of its flights. It has branded two of its Airbus 330-300 planes that fly on the Songshan-Shanghai Hongqiao and Taipei Songshan-Tokyo Haneda routes six times per week and two times per day respectively. The flights started operations in May 2012. The airline is also planning to brand more A330-200 passenger jets to increase the number to five and additional flights to Seoul, South Korea. This is connecting the Kitty brand to three regional countries: China, Japan, and Taiwan and is a unique branding strategy far from the usual clothing and gifts branding. The planes are painted the Hello Kitty icon on the outside and the interior design too. The stewardesses have the Hello Kitty face on their uniform and passengers are offered Kitty’s duty free products in flight. The plane has also a Hello Kitty inspired menu, hand lotion, hand washing liquid, utensils and tissues. The effectiveness of the co-branding strategy is however yet to be established as it is still in its early stages (“EVA air to fly Hello Kitty jets on two new routes,” 2012). McDonald’s and Hello Kitty The popular fast food chain McDonald has also reaped the benefits of co-branding with Hello Kitty. McDonald franchises in Hong Kong cashed on the Kitty craze in 1999 when brand loyalty for the Kitty was at its highest. Customers who purchased food worth a minimum $1.95 would be entitled to purchase of a Hello Kitty for $2.32. The partnership was so successful that over 1000 people lined up on the streets for the chance to purchase the stuffed Kitty. The local purchase department stores at the time were selling the Kitty for $15 and this might explain why the marketing strategy was such a hit. Consumers reasoned that they would re-sell the Kitty for a tidy profit. McDonald’s sales rose by 10% in 158 of its outlets at a time when the Hong Kong economy faced a recession declining by 5% (Cheung, 1999). Hello Kitty snacks and confectionery In 2010, the Hawaiian Host a confectionery company partnered with Sanrio Inc. to produce Hello Kitty branded confectioneries. The products were to debut at the Americas Duty Free Show. They were licensed to be sold in the US and its territories, Japan, and Korea travel retail markets. The package contained Hawaiian Host macadamia six pack sweets covered in milk chocolate. These were packed in attractive Hello Kitty carry boxes and a free Hello Kitty key chain. These products sell for $20-$22 at duty free shops in the aforementioned travel destinations (“Hawaiian Host brings Hello Kitty and Disney multi-packs to Orlando,” 2010). Taste of Nature Inc., a large cotton candy manufacturer in the USA partnered with Sanrio Inc. in 2012 to manufacture Hello Kitty branded candy treats. The treats are cotton candies made of blue raspberry and pink vanilla flavours retailing for $1.49 and $1.29 respectively. The candy manufacturer also intends to introduce Hello Kitty cookie dough, chocolate brownies and cupcakes. The brownies and dough are edible dough glazed in creamy white chocolate while the cupcakes will have a frosting coating with multi coloured sprinkle toppings (“Hello Kitty,” 2012). Hello Kitty and TV products The Hub Network a children’s cable network in the US partnered with Hello Kitty and the popular rock band KISS to produce an animated series called KISS Hello kitty. The popularity of the two brands is expected to catapult revenue of the TV series. The animation series is anticipated to be an all family show though with a wider appeal to the children (“Legendary KISS founders Gene Simmons and Paul Stanley are going to rock ‘n’ roll the Hub Network with “KISS Hello Kitty; a new animated TV series in development,” 2013). It is expected that the program will cause a ripple effect in the sales of the Hello Kitty merchandise and continue strengthening the brand loyalty among children. One of the main marketing arguments is that when they target kids, they will grow with the product and as they transition into young women they will buy more of the Young women’s products and once they enter motherhood they will pass on the brand loyalty to the kids. Sanrio Digital has also partnered with Zoo Entertainment to produce a Hello Kitty inspired Nintendo Wii system video game. The game features Hello Kitty characters venturing into adventurous activities through the four climatic seasons as players gain and unlock awards throughout the game. The video game retails at $29.99 across Canada and the US. It is a partnership expected to not only further the brand but also draw girls towards video games (“Sanrio Digital and Zoo Games release first-ever Hello Kitty game for Nintendo Wii System, Hello Kitty seasons,” 2010). Hello Kitty and beauty products Sanrio Inc partnered with Sephora an international cosmetics retailer to manufacture Hello Kitty themed fragrance and cosmetic products. The partnership deal produces premium products such as cologne and make-up kits that ensemble the happy and fun look associated with Hello Kitty. The products are expected to increase the appeal of Hello Kitty to a more mature clientele as opposed to children and teenagers. The products are packaged in containers that resemble the Hello Kitty’s face while still maintaining the high quality associated with the brand (Spinner, 2012). Hello Kitty and eyewear Sanrio Inc. allowed to Eyewear designs Ltd to manufacture a collection of Hello Kitty branded eyewear targeting school girls. Andrea Gluck the Eyewear co-president believes that the collection will be able to conceive parents to buy their girls trendy eye glasses that are of high quality (Carroll, 2012). Conclusion The capitalisation of the traditional appeal of cuteness in Japan enhanced brand loyalty in the local environment which is important before a brand expands globally. In case of a global recession the brand is assured of home-base loyalty. However if the McDonald case is a true reflection of the brand globally, then recession does not affect its revenue. Hello Kitty has a great branding strategy targeting women from age five to thirty five. Taiwan has taken the brand a notch higher by adapting the Hello Kitty theme in EVA Airlines. This is yet to be replicated by other airlines but is a great way to co-brand. It is a trendsetter even for other brands owned by Sanrio Inc. The move towards the high-end market in diamond Hello Kitty motif and cosmetics is also a great way to diversify the target market. The soon to be launched video game shows that Hello Kitty is conscious of the global trends and is new way to market it in an ever expanding tech-savvy environment. References Bremner, B. (2006, June). Kitter Glitter: Saving Hello Kitty. Business Week. Bryce, M. (2004). Cuteness needed. International Journal of the Humanities, 2(3), 2266-2275. Carroll. (2012, August). Eyewear designs debuts Hello Kitty eyewear. Vision Monday, p. 34. Cheung, M. (1999, September). Hong Kong’s Kitty craze. Business Week, 3641, 6. Eva Air to fly Hello Kitty themed jets on two new routes. (2012, July). International Business Time, 10. Hargrave-Silk, A. (2005, July). Jewelller draws on Hello Kitty craze. Asia’s Media and Marketing Newspaper, 10. Hawaiian Host brings Hello Kitty and Disney multi-packs to Orlando. (2010, Feb/March). Travel Markets Insider Magazine, 156. Hello Kitty (2012) Professional Candy Buyer, 20(2), 5. Hello Kitty hits 10 million “likes” on facebook. (2012, May). PR Newswire US. Hsu, J. (2010, January). Happy anniversary Kitty. Retail Merchandiser, 120-126. Legendary KISS founders Gene Simmons and Paul Stanley are going to rock ‘n’ roll the Hub Network with KISS Hello Kitty: A new animated TV series in development. (2013, March). PR Newswire US. Phillips, S. (2010). Kitty turns 35. License! Global, 13(1), 60. Sanrio Digital and Zoo Games release first-ever Hello Kitty game for Nintendo Wii system, Hello Kitty seasons. (2010, July). Business Wire. Spinner, J. (2012, June). Make-up packaging is a thing of beauty. Packaging Digest, P. 26- 27. The Hello Kitty for presidential campaign announces support of the Red Cross and amp; 826 DC. (2012, February). PR Newswire US. Yano, C. R. (2009). Wink on pink: Interpreting Japanese costs as it grabs the global headlines. Journal of Asian Studies, 34(1), 681-688. Read More