Kawaii Empire Expands: Sanrio and Avex Forge Global IP Powerhouse
From Southeast Asian Success, a New Strategic Alliance Aims to Elevate Beloved Characters Worldwide, Blending Music, Events, and Merchandising.
Tokyo-based Sanrio, the creator of iconic characters such as Hello Kitty, and entertainment powerhouse Avex have reached a fundamental agreement for a strategic partnership. This collaboration is set to significantly boost the global deployment of their intellectual properties (IP), marking an exciting new chapter for both companies.
The agreement follows the remarkable success of their joint venture, SANRIO SOUTH EAST ASIA PTE. LTD. (SSEA), established in Singapore in 2020. Over its initial five-year period, SSEA dramatically expanded Sanrio’s character licensing business across the vibrant Southeast Asian market. The company successfully elevated Sanrio’s characters into highly recognized and supported brands within the region’s licensing landscape.
SSEA’s performance has been exceptional, with revenue growing approximately tenfold in Japanese yen from December 2021 to December 2025. This rapid growth underscores SSEA’s effective establishment of brand presence and business infrastructure, exceeding initial projections for profitability. This achievement is a testament to the synergistic blend of Sanrio’s globally appealing character brand power and Avex’s expertise in localized business operations and licensing.
As part of this new strategic alignment, Avex will transfer its 30% stake in SSEA to Sanrio for a total of US$10,700,000 (approximately JPY 1.6 billion, based on the exchange rate as of December 24, 2025). This transaction is expected to conclude by the end of December 2025. Effective January 1, 2026, SSEA will transition into a wholly-owned subsidiary of Sanrio, with Yasuyuki Otsuka, Sanrio’s Senior Managing Director, taking the helm as its new CEO. Importantly, all current SSEA employees will retain their positions, ensuring continuity in operations.
The strategic partnership extends beyond the structural changes to SSEA, leveraging the trust built through their joint venture. Both companies aim to maximize their respective strengths across various sectors, including music, events, and merchandising. This deepened collaboration will encompass:
-
Music Production (including Music Videos):
-
Active collaboration on original sound source production utilizing Sanrio IP.
-
Joint planning for collaborations involving both companies’ IPs.
-
-
Events:
-
Sanrio’s sponsorship of Avex-hosted events.
-
Further promotion of collaborations at Sanrio music events.
-
-
Merchandising and Sales Distribution:
-
Joint product planning, manufacturing, and logistics coordination.
-
Collaborative sales through Sanrio shops and Avex-operated venues like Tree Village.
-
-
Personnel Exchange and Support:
- Mutual secondments between the two companies.
Sanrio Representative Director and President, Tomokuni Tsuji, expressed his pride in SSEA’s journey, stating, “The launch of SSEA was a major challenge for Sanrio, and I am proud of how we have pioneered and grown the business in the Southeast Asian market together with Avex. This share transfer is not an end to our relationship, but a first step towards strengthening cooperation in broader areas. We will continue to deliver smiles to customers worldwide under our partnership with Avex.”
This partnership is poised to create new growth opportunities not only in Southeast Asia but also within Japan and across the global market. Sanrio and Avex are committed to walking together on a new stage of growth as value creation partners in IP creation, expansion, and global outreach. For more information about Avex, visit their official website: https://avex.com/jp/ja/
This alliance signifies a powerful move to infuse the global entertainment landscape with more of Japan’s beloved kawaii culture, pushing the boundaries of character engagement through innovative cross-industry ventures. The future promises a vibrant fusion of music, events, and merchandise, bringing joy to fans worldwide.
