How a Japanese silk company became a global empire built on the power of cute.

History · Published 3 October 2026 Swipe more like this →

In short: Founded in 1960 as a silk merchant, Sanrio transformed into a global powerhouse by mastering the economics of kawaii. From rubber sandals to the iconic Hello Kitty, the company built a multi-billion dollar empire by rotating hundreds of characters, proving that simple, cute design is a potent commercial force.

Shintaro Tsuji founded the company in 1960 as the Yamanashi Silk Company with ¥1 million in capital. By 1962, he shifted focus to rubber sandals, discovering that adding cute floral designs significantly boosted sales. This insight led the company to license characters like Snoopy before eventually creating its own intellectual property to avoid royalty fees. In 1973, the firm was officially renamed Sanrio, a name derived from the Japanese word for his former company and the sound of excitement, though it is also linked to the Spanish for holy river.

The company's most famous creation, Hello Kitty, debuted in 1974. Despite fluctuating popularity, she remains the brand's primary revenue driver. Sanrio has since expanded its roster to over 450 characters, including My Melody, Keroppi, and Aggretsuko. This strategy of constant character rotation and media integration—spanning anime, theme parks, and digital games—has kept the brand relevant for decades. In 2020, Shintaro Tsuji stepped down after 60 years, passing leadership to his grandson, Tomokuni Tsuji.

Sanrio's journey has not been without legal and regulatory friction. In 2010, the company faced a lawsuit from the creators of Miffy over the character Cathy, leading to a global halt on Cathy merchandise. Furthermore, in 2019, the European Commission fined the company 6.2 million euros for restricting cross-border sales. Despite these hurdles, Sanrio remains a dominant force in global retail, operating through a vast network of boutiques and partnerships, and maintaining its cultural influence through initiatives like the annual Sanrio Character Ranking poll.

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