Sanrio, the popular Japanese company best known for its familiar cartoon character Hello Kitty, has been identified with cute, child-friendly fun. However, Sanrio’s economic activities as well as its penetration in Israel have raised questions and debates in recent times. With relation to the complex and often strained Israeli-Palestinian conflict, reservations have been expressed that the operation of Sanrio in Israel is a testament to its political affiliation with the country.
The purpose of this article is to explore this question further. We are going to discuss the economic activities of Sanrio in Israel, the social and political context of the activities, how various stakeholders, including activists and customers, responded to the activities, and the overall implications on businesses operating or carrying out their operations in politically delicate regions. By the end, the reader will understand the issue regarding corporate neutrality or support on a much more advanced level, considering the factors that affect the argument.
Sanrio global brand and expansion introduction:
Sanrio Co., Ltd. is a famous Japanese company, founded in 1960, and is one of the world’s leading character branding and merchandise companies. Hello Kitty is the most renowned Sanrio character, who was brought out by Sanrio in the year 1974, and it immediately became famous at that time, which would form the basis of kawaii (cute) culture both in terms of Japan and globally. Throughout the last decades, Sanrio has expanded the roster of its characters to include My Melody, Gudetama, Keroppi, and Badtz Maru, which have their cult following. The nature of Sanrio’s business can easily be licensed to put it on various merchandise such as clothing, stationery products, cosmetics, and even household products. Besides licensing, the company also has retail stores around the world, which are an additional way for them to promote and gain popularity for their brand and communicate with customers in real-time.
Sanrio’s entry into Israel
Israel has an interesting potential in respect of international brands due to its developed consumer group and economy. Sanrio tried to establish a store in Israel in the year 2001, but shortly thereafter, this project was not successful, and it failed to establish long-term relations.
In 2011, Sanrio went even further to have a chain of Hello Kitty stores across Israel by joining hands with Leader Brands, an Israeli franchisor. There are up to 18 stores in major towns such as Jerusalem, Haifa, and Rishon LeZion, planned after the initial one opened in Givatayim Mall in Tel Aviv. Sanrio products were sold in a wide variety of items in these boutiques, including plush toys, school supplies, accessories, and collectibles.
The Palestinian-Israeli War
The Israeli-Palestinian war is a basis for defining competing claims to land, sovereignty, and national identity. The conflict has become violent over time, especially in several wars since the mid-20th century, and it continues to manifest in violence and a prolonged humanitarian crisis with the people of the state of Palestine and Israel.
Territorial Conflicts: Israel controls pieces of territory, currently being occupied since 1967, belonging officially to the Palestinian side, and is represented as the West Bank and East Jerusalem. Israel still has a blockade on the Gaza Strip despite Hamas being in office.
- Settlements: Most countries, including the UN, consider Israeli settlements in the occupied territories as illegal according to international law.
- Human Rights Issues: Various human rights groups have cited abuse of rights against the Palestinians, including violence, arrests, military invasion, and travel bans.
Economic affliction and encirclement: The Gaza blockade also has tremendously discouraged human mobility and the transfer of goods, causing a high rate of poverty and malnutrition.
Boycott movements and responses by other nations
The Boycott, Divestment, and Sanctions (BDS) campaign was initiated in 2005 by the Palestinian civil society organizations in reaction to these issues. BDS also calls on the governments and businesses of the whole world to sanction and divest from Israeli businesses and boycott Israeli services and products until Israel complies with international laws and accepts the rights of the Palestinians. BDS has made companies reconsider their business in Israel as well as the occupied territories.
Details and timeline of Sanrio’s business activities in Israel
Failing attempt of 2001
Sanrio made a low-profile entry into the Israeli market in the year 2001, a venture that was not successful in integrating into the Israeli market. Not much is known about this early attempt, although presumably it was because the business still did not have a significant retail base or specialty outlets.
Expansion Plan of 2011 The 2011 Expansion Plan (EPP) is an important step towards a new nomenclature for the English language. EPP was envisioned as a new form of English language nomenclature. The team behind EPP consists of members of the academic, government, and non-governmental community-based organizations (CBO) sectors, who work alongside the East Asian community.
It was when Sanrio partnered with Israeli franchise operator Leader Brands in 2011 that the expansion of a greater, more recognizable scale began. Targeting the major cities, such cooperation was aimed at creating a network of Hello Kitty shops all over Israel.
The first store was situated in Givatayim Mall, another popular retail center near Tel Aviv.
The expansion was to include new stores in such locations as Jerusalem, Haifa, and Rishon LeZion, where up to eighteen stores would be established.
- Selection of Products: The products made by Sanrio, such as Hello Kitty, My Melody, and other characters, were available in the market in large quantities.
- Marketing: Sanrio utilized its cute character to attract attention to the prettiness of stores as a travel destination that a family may come to.
This new growth, which reached out to the growing Israeli middle class and consumer market, was considered the necessary step in the globalization strategy of Sanrio.
Sanrio’s action and business stance
As can be evident in the latest news on the same, Sanrio has not openly touched on the matter or issued any public statement citing its stand on Israel or the Israeli-Palestinian conflict.
However, Sanrio does offer contact information about the usage of its characters outside of Japan, and they have not directly mentioned their open position on the political implications of its current trading relations with Israel.
This silence has been explained in lots of different ways:
- Corporate Neutrality: Sanrio may be attempting to maintain a neutral stance by focusing on its role as a corporate brand rather than the role of a political actor.
- Non-Involvement in the Media: By remaining in the shadow, Sanrio can be trying to ensure that the stakeholders, or even the customers, on either side of the conflict do not get enraged.
- Operational Focus: The company does not strive to display political favor; instead, its efforts can be regarded as purely business.
Business ethics and political sophistication
The Sanrio case creates more generic apprehension in relation to the responsibilities of international companies operating in politically sensitive regions.
Corporate Social Responsibility (CSR)
More and more, ethical and social implications of the organizational activity of modern organizations are expected to be considered. This includes:
Human rights;
- Not taking part in quarrels or maltreatments
- Bridging in communication amongst stakeholders
- Responding to complaints of activists and consumers
Japan’s foreign policy cognitive setting
Japan, the mother country of Sanrio, also has a complicated Israeli-Palestinian conflict of its own. Japan has always maintained a middle-ground position and has been moderate in its immediate approach, such as supporting the Palestinians and a Gush-Two solution. The Japanese approach to foreign relations is affected by the country’s economic interests in the Middle East, such as energy security. Japan had, on occasion, been critical of Israeli behavior, as shown in its role as the only country in the G7 to condemn Israeli military actions in a recent conflict. It may be included within the scope of Japanese corporations’ actions and the expectations of the public.
Conclusion
Does Sanrio take part in Israel? is the question which cannot be answered in an immediate yes-or-no kind of manner. Sanrio has never issued any statement concerning the Israeli-Palestinian conflict or expressed political support towards Israel. Still, Sanrio is operating even in Israel because it chose to establish retail facilities in the country, which is viewed by some as the quiet acceptance or normalization of Israeli policies. This is the view of activists who are interested in the BDS movement and the rights of the Palestinians. The silence by Sanrio about the issue provokes questions and criticism.
