We had the opportunity to sit down with Ray Hatoyama of Human Made and Sozo Ventures for a fireside chat at our Mountain View headquarters. As the former CEO of Sanrio, Ray has successfully worked with iconic brands such as Hello Kitty, Pokémon, and Snoopy and Charlie Brown. He focused on the importance of openness, flexibility, and adaptability in business.
Here are five takeaways from our discussion.
1. Great brands and products keep what is special from their local origin but distribute in a way that makes sense to global audiences.
“Entrepreneurs that look beyond the traditional markets they serve and are open to cultural exchange will see significant growth within their company. Pokémon Go became a success because Niantic engaged with its target countries’ governments to navigate complex regulations. The game isn’t popular only because of the technology behind it or people’s love for the character—there are a lot of regulations surrounding things like user location data. If we didn’t connect with various governments to solve the regulatory issues, it wouldn’t have become the global game it is now.”
2. Collaboration with trendsetters and Tier 1 brands fuels entrepreneurship and helps move trends.
“Entrepreneurship is more common in certain parts of the world. For example, Japan is a very wealthy and technologically advanced country, but there aren’t as many entrepreneurs as the US. One way to change that is through cross-market brand collaboration. I’ve led a number of brand collaborations throughout my career, including between Hello Kitty and brands like Swarovski and A Bathing Ape. At Human Made we’ve collaborated with brands like Louis Vuitton and celebrities like Lil Uzi Vert and Kid Kudi. Pokémon collaborated with Moncler, Fendi and Tiffany. Brand collaborations also help move trends. Market trends differ due to a time lag. In my experience, trends appear first in the US, and then eventually they make their way to Japan and Korea. Cross-market brand collaborations break down traditional barriers to innovation by shortening this time lag, while promoting successful ideas.”
3. Brands have to change as the market realities change. For example the rise of influencer marketing means it’s almost impossible to build a brand now—from cartoons to automotive—without influencers.
“We live in a digital-first world where companies have to welcome change and adapt to stay relevant and competitive. Business models that worked 20 years ago may now be outdated. We see this all the time with influencer marketing. Many fashion brands now incorporate strategic influencer partnerships to boost their brand exposure on social media. By finding the right influencers to reach the right audiences, companies are able to scale their brands in ways that aren't possible with traditional advertising. Influencer marketing also opens doors for creative individuals who wouldn’t be in the industry otherwise. For example, Pharrell Williams started his career as a musician who now also works in fashion. He brings his own personal creativity to the runways. This type of model didn’t exist before.”
4. The only thing that matters is what the market wants rather than what the company has historically done.
“Some executives are set in their ways, convinced that certain product development or marketing ideas won’t work. Instead, they should let the customers guide their business decisions. Sometimes it’s okay to challenge the status quo, especially if there’s demand. Throughout my career I would see opportunities that were met with resistance. It would take one big success to convince the critics otherwise, because a simple discussion was never enough. It doesn’t matter if a company has always operated a certain way; it must be willing to adapt when necessary, and be okay with change to meet customer demand. The market will ultimately decide if a company succeeds.”
5. Building a brand involves much more than ad spend and stats.
“Building a successful brand doesn’t happen overnight. It’s the things not found on a brand’s label that are most important—the belief that the brand will be successful, a strong reputation and a powerful method of product delivery. Companies must have a strong vision and strategy for their brand, even when results aren’t immediate. These things are foundational to a brand’s growth.”
.webp)
.webp)
