The evolution of characters business models in Japan: Duffy, Hello Kitty, and Kumamon

– This paper aims to clarify how to develop characters business models by utilizing new business concepts.

– The paper examines three cases in Japan to innovate characters business models: Duffy, Hello Kitty and Kumamon.

– The paper suggests that utilizing experience-based promotions, open innovation and a royalty-free strategy enhances customer loyalty to characters, expands customer targets and encourages autonomous collaboration of stakeholders.

– These case studies clarify how new business models aim to increase customer loyalty to characters and widen customer targets beyond generation, industry and country.