[Introduction]
The true nature of business as revealed by "Monchhichi," which relies on approachability.
You all,"Monchhichi"Are you familiar with this character? You can see its plush toys on a daily basis at Senso-ji Temple in Taito Ward, Tokyo, as well as in tourist spots and toy stores. This character, characterized by its adorable "freckled face" and "pacifier-sucking pose," has actually gained worldwide popularity.
However, what has been particularly talked about in recent years is the "explosive recovery in sales" caused by Monchhichi. Following a social media post by a Thai actress in 2024, it became a sensation among foreign tourists (inbound) and even Japanese people, and sales increased 3.7 times in just one year.
Is this remarkable trend merely a fad? In fact, Monchhichi's success is linked to the company's long-term strategy and the overall changes in the modern retail industry. This time, we will explain the business concept of "evergreen IP (intellectual property)" through the lens of Monchhichi's resurgence, and explore what path retailers and small and medium-sized enterprises should choose.
Three reasons why the toy "Monchhichi" is experiencing a resurgence in popularity.
Let's get straight to the point. Why is "Monchhichi," which is celebrating its 50th anniversary, experiencing such a resurgence now? There are three main reasons for this: the utilization of digital trends, engagement with local communities, and the high quality of the brand.
- Reason 1: Creating "new demand" through overseas influencers.
- Reason 2: Efforts to revitalize local communities strengthened to coincide with the 50th anniversary of the product's release.
- Reason 3: A long-term perspective on the "evergreen IP" strategy
The combination of these three elements has enabled sustainable growth that goes beyond mere "trends." Let's take a closer look at what's specifically happening.
1. Creating new demand through Thai influencers
Social media and influencer marketing, trends of the digital age, played a crucial role in the resurgence of Monchhichi. In particular, social media posts by Thai actress Mayami sparked increased attention from overseas.
Mr. Ueno, president of Sekiguchi Co., Ltd., points out that "we saw a significant increase in visitors from Thailand in 2024." This is not mere coincidence, but rather an example of how digital communication and physical travel trends are interconnected.
Specifically, Monchhichi's popularity has expanded beyond its traditional target audience of "domestic children" to include "tourists from overseas" and "young people who saw it on social media." Developing new channels (distribution routes) in this way is an extremely effective strategy in the often saturated retail industry.
2. Initiatives for regional revitalization: Establishment of Kinchichi Co., Ltd.
Another important factor is how companies have engaged with local communities. In June 2023, Sekiguchi launched a regional revitalization project using "Monchhichi" as its catchphrase and established "Kinchichi Co., Ltd."
As a more concrete example, Monchhichi was appointed as CEO and served as a public relations ambassador for the "Hanagasa Festival" in Yamagata Prefecture. This demonstrates that the company is aware of its role not merely as a toy manufacturer, but as a partner in revitalizing local culture and events.
In retail, what's important is not just stocking products, but also how you engage with the local community. Focusing on community contribution in this way helps gain consumer trust and strengthens the brand.
3. Evergreen IP: A long-term perspective strategy
The last reason is the most important. "Evergreen" means "always fresh" or "loved for a long time." Monchhichi has been praised for its long-term approach to preserving brand value, to the point that there is debate as to whether it will finally join the ranks of "evergreen IPs" now that it has reached its 50th anniversary.
According to data from Licensing International Japan, over 70% of sales of character-based goods and services are supported by "evergreen IP." In other words, creating content that is loved across generations, like Pokémon or Disney, provides a tremendous competitive advantage in business.
Changes across the entire retail industry and specific steps to success
By examining the case of the toy "Monchhichi," we can gain a deeper understanding of the challenges currently facing the entire retail industry and find clues to their solutions. Here, based on specific facts and figures, we will explain the path that small and medium-sized enterprises should take.
- Market Size Expansion: Global Licensing Entertainment Market
- Case studies and points of imitation from successful companies: Steps to creating beloved characters
- The potential of small and medium-sized enterprises: What can be achieved even with limited financial resources and human resources.
By reviewing these three points, readers will be able to broaden their perspective on "what is important in their own business."
1. Global market expansion: projected to reach approximately $268.8 billion.
According to research firm QY Research, the global licensing entertainment and character market was worth approximately $166.78 billion (approximately 24.6 trillion yen) in 2024. Further growth is projected, with the market expected to double to approximately $268.8 billion by 2031.
These figures represent remarkable growth, meaning the market will expand 1.6 times in the next five years. In particular, the "licensing" business, which utilizes characters and content for business purposes, will undoubtedly become even more important in the future.
In this era, "storytelling" and "brand value" are becoming increasingly important not only in retail but in every industry. Understanding these global market trends is essential information for corporate strategy formulation.
2. Imitation points for success: Steps to creating a beloved character
So, how can we answer the question, "Why Monchhichi now?" in a specific business context? The main steps are as follows:
Step 1: Establish long-term connections
Even after creating a brand or product, it's crucial to always be mindful of its continued presence in the market. Instead of simply riding temporary trends, it's important to consider whether it will still be loved 10 or 20 years from now.
Step 2: It is possible to aim for this even when financial resources and personnel are limited.
For small and medium-sized enterprises (SMEs) to elevate their own brand character to "evergreen IP" requires continuous effort. It's not just large corporations that can increase opportunities for their brand to become known to consumers both domestically and internationally through appropriate collaborations (e.g., partnerships with government agencies).
Step 3: It can be pursued even when financial resources and personnel are limited.
Of particular importance is the perspective of whether small and medium-sized enterprises (SMEs) can sustainably cultivate their own characters when compared to companies that dominate the market due to their capital strength (such as the adorable toy maker "Love-Bu"). Misa Kimura, a partner at KPMG Consulting, stated that "there should still be room for support from the government and administrative bodies," suggesting the possibility of collaboration at the government level.
3. The potential of small and medium-sized enterprises: Strategies for making their own IP "evergreen"
In the retail industry, small and medium-sized enterprises (SMEs) are just as important players as large corporations. However, due to limited financial resources and human resources, it is considered difficult for them to cultivate their own brand identity over the long term.
What's important here is the awareness of whether "the company's brand value will remain in the market." Mr. Yoshino, the president of Monchhichi, emphasizes that "we are determined not to discontinue Monchhichi." In this way, rather than riding a temporary trend, having a strong will to keep your company in the market in the long term is what ultimately leads to success.
Supplementary Information: The Importance of Evergreen IP and Future Prospects
This article provides supplementary information to deepen your understanding of Monchhichi and trends in the retail industry. These perspectives can change your "work sensibilities" and be helpful when making strategic decisions.
- Fact 1: Evergreen IP accounts for more than 70% of the overall market.
- Fact 2: Counter-strategies against major Chinese toy manufacturers and future prospects
- Supplement: How to unleash the "potential" of small and medium-sized enterprises
By keeping the following points in mind, you will gain a deeper understanding of the future of the retail and content industries.
1. Fact: Evergreen IP accounts for more than 70% of the overall market.
According to Licensing International Japan, over 70% of sales of character-based goods and services are supported by "evergreen IP." This includes well-known examples such as Pokémon and Disney, and it seems that Monchhichi will also be joining their ranks.
Having content that resonates with consumers for a long time is crucial not only for stabilizing revenue but also for building trust with consumers. Especially in the digital age, brands that are perceived as having "long-term value" are the ones that can continue to capture people's hearts.
2. Facts: Counter-strategies against major Chinese toy companies and future prospects
Currently, a major Chinese toy company, backed by its capital, is dominating the global market with its character "Love-Bu." This presents a significant challenge to the brand value of small and medium-sized enterprises.
However, what is important in the retail industry is the perspective of "whether it is possible to sustainably cultivate one's own brand even when financial resources and human resources are limited." Misa Kimura, a partner at KPMG Consulting, said that "there should still be room for support from the government and administrative bodies," suggesting the possibility of collaboration at the government level.
Supplement: How to unleash the "potential" of small and medium-sized enterprises
Some argue that in order to make the content industry a "core industry" in Japan, it is necessary to unlock the potential of intellectual property (IP) held not only by large corporations but also by small and medium-sized enterprises (SMEs). Government and administrative bodies can collaborate with SMEs to increase opportunities for their characters to become known to consumers both domestically and internationally.
In particular, trends in the retail industry, such as those seen with Monchhichi, reflect not merely "fads," but larger-scale trends of "market change." Developing strategies based on this is crucial for a company's survival and growth.
[Summary] To make the content industry a "core industry" in Japan
Based on the above analysis, it becomes clear that the resurgence of the toy "Monchhichi" was not merely a coincidence, but rather the result of a brilliant alignment between market changes and the company's strategy. What insights can we gain from this case study for the retail and content industries as a whole?
In conclusion, the key is "to remain in the market." President Yoshino emphasized, "We are determined not to discontinue Monchhichi." Behind these words lies a firm resolve to cultivate brand value from a long-term perspective, rather than trying to ride a temporary trend.
In today's retail industry, maintaining consistent contact with consumers is essential. Even for small and medium-sized enterprises (SMEs) with limited funds and personnel, elevating their brand character to an "evergreen IP" is a crucial business effort. To achieve this, it's necessary to not just ride the wave of trends, but to combine strategic initiatives such as community engagement and digital marketing in a balanced way.
Furthermore, with an eye on future market expansion, it is essential to unlock the potential of intellectual property (IP) held not only by large corporations but also by small and medium-sized enterprises (SMEs). With increasing opportunities for government and administrative support, there are more chances to spread the value of a company's brand to consumers both domestically and internationally.
The idea of making the content industry a "core industry" in Japan stems from an emphasis on the power of intellectual property (IP) held not only by large corporations but also by small and medium-sized enterprises. This is not merely an "idea," but an important perspective for changing the future of business across society.
The ultimate message we should take away is that, in order to remain in the market, it is necessary to continuously cultivate your brand value over the long term. This attitude is a universal principle that applies not only to the toy industry but to business strategies in all industries.
