Recently I had been noting a rash of Sanrio stores closing around the country. Stores are closing in Northern California, Houston Texas and the Dallas store is in Lockout according to friends at Hello Kitty Junkies. In the news another store is closing in St Louis area new story notes January is the time many business end their lease and close down perhaps why the reason for the rash of closings . Update:  a member of hello Kitty Junkies reports her local store in Virginia is closing.  The Even in Portland we are not immune; Sanrio Surprise is closing and merging with the Washington Square Hello Kitty Sore.  While this does not mean Hello Kitty is going away but this will have an impact on Sanrio’s financial numbers and put a damper on Hello Kitty’s 40^th anniversary.  Already hedge   investors are responding   as Sanrio is one of the top three stocks being sorted on the Japan’s Topix 500 index.

So what happened, what when wrong?  First I feel much of Hello Kitty growth in the United States is reliant on the celebrity culture. Much of the growth in the adult market was due to  impromptu endorsement by stars like  Lisa Loeb and Lady Gaga;  there has not been much happening on the  celebrity  front since Gaga and she is already became  last year’s performer.  As I learn in research for my Hello Kitty panel, Sanrio spends very little in advertizing instead relying on word of mouth.   If there no buzz to cause word of mouth what is left?  Second is the sameness of Hello Kitty products. I have had a sinking feeling when visiting my local Sanrio story 90% of the store is taken up by Hello Kitty items with only minor variations. The kitty product that got me excited with the street fighter plush and Japananimation.  In my opinion the sameness of Hello Kitty has lead to some burnout of customers at their stores .If anybody in Sanrio is reading this; I am still waiting for an 18” My Melody and Keromi plushies to sleep with and 24in to 36 inch to collect. I was happy Sanrio released small plushies of other charters but the local store did to carry them, I eventually bought them online.   As for Sanrio retail online, Sanrio being late to the on-line retail game.    Sanrio resisted at first, even prohibiting wholesale to online retailers and minimum online sale presence.   While not all that bad, is Sanrio pushing Hello Kitty out of the Boutique and into many stores, Hello Kitty can be found at Target, Fred Meyers, Vans, Walmart and other retailers.   Finally pricing is a factor, many of larger plush product prices increased; a 20 inch plush that sold for 50 is not around 95. Recently I want to replace some 18 in plushies I sleep with as he became to ratty and add another 24in plush to the rotation but the price is still too high.

So what Sanrio can do?  First let look at t the store Sanrio need to get away from Japanese marketing mindset of putting out many items with minor variations of the same Hello Kitty. They need to leverage other characters, perhaps bringing   the mix of Hello Kitty vs. other charters around 50% in their stores Sanrio need to work attracting the male market. I think Pochaaco and Batz Maru would be good candidate but also make it cool for guys to like Hello Kitty too.  Do keep some classic Hello Kitty item but concentrate on new and unique look for Hello Kitty.  Still Sanrio should keep the course   on collaborations but do more cross cultural and international. For example I feel Sanrio lost an opportunity by not simultaneously   releasing the One Piece X Hello Kitty and Sonic X Hello Kitty in Japan and the US, noting the popularity of Anime Japanese pop culture outside Japan.  Perhaps it time Sanrio talk with Disney for a Disney X Hello Kitty collaboration and Hasbro / Hub for a My Little Pony collaboration and make a brony play.  Still all there collaborations need to involve not just Hello Kitty but the entire Sanrio Line.

Sanrio need to boaster their online presence to fill the gaps of closing stores. Perhaps working with Amamzon.com

Sanrio need to look at its media holding to case some buzz and attention. There not been a Hello Kitty anime for some time.  Sanrio need to look at some good anime creators and take a idea used by Funamation with is success with Attack on Titan and simulcast both in US and Japan. Better, do  a reboot of Hello Kitty and Friends with the Hub  with Lauren Foust as  producer, just give Lauren  a lot of headway  and fight the urge to micromanage things.

Thinking of anime Sanrio and stores need to reach the local anime and Japanese pop culture interest not just at San Diego Comic Con but other Anime conventions. For example local stores can bring attention by sponsoring events at anime conventions and setting up a table the dealers den.

It seems Hello Kitty may be retreating but Sanrio live through many of ebb and flows, 2014 is no exception.  She is still popular in Asia. I do not seen Hello Kitty going away any time soon. Dumping hello Kitty will be like dumping Bugs Bunny or Mickey Mouse.