Sumitomo Corp. will collaborate with Thai consumer goods conglomerate Saha Group on intellectual property $(IP)$ business initiatives utilizing the anime series "Crayon Shin-chan."
Sumitomo, a major Japanese trading house, and Saha signed a memorandum of understanding on June 27. In March, Sumitomo formed a business partnership with Futabasha Publishers Ltd., the developer of the "Crayon Shin-chan" franchise, to support the company's overseas IP business. Sumitomo aims to capitalize on Saha's distribution and retail networks to enhance the value of the characters from the series in the Thai market.
Saha, one of Thailand's leading conglomerates, engages in operations such as the manufacture and sale of food and daily necessities. It has close ties with Japanese companies, as seen in joint ventures it has operated with Wacoal Corp. and Lion Corp.
At a signing ceremony for the memorandum of understanding held in Bangkok on the day, Shuichi Nagasawa, general manager of the Media Strategic Business Unit at Sumitomo, said, "Anime has been popular in Thailand for many years, and the country holds great potential as a hub for expanding our IP business into Southeast Asia."
Vorayos Thongtan, managing director at E-Commerce Digital Thai Holding PLC (EDTH), a core company of Saha Group, stressed that Japan is recognized for its "world-class intellectual properties that have inspired generations of consumers around the world."
"We believe these strengths, combined with the business ecosystem and the market expertise of Sumitomo Corp. and Saha Group, will create tremendous opportunities to develop new products, services and consumer experiences for the region," he said.
Sumitomo and Saha will discuss operation details going forward, but potential initiatives include operating specialty stores selling "Crayon Shin-chan" character goods and experiential facilities.
Consumer awareness of "Crayon Shin-chan" is high in Thailand, where character goods are sold through Sumitomo, under a license from Futabasha. However, there are concerns that companies with excess inventory might sell items at discounted prices, thereby damaging the brand's value.
Sumitomo intends to act as an overseas licensing agent and develop overseas sales channels by connecting IP holders with overseas distributors and retailers. Starting with its partnership with Futabasha, the company aims to grow its business to a scale that rivals the top players in the industry, such as Aniplex Inc. -- a group company of Sony Group Corp. -- Toei Animation Co. and Toho Co. within the next 5 to 10 years.
Sumitomo looks to gain top-tier position
Nagasawa elaborated on Sumitomo's future business plans during an interview with The Yomiuri Shimbun. The following is excerpted from that.
The Yomiuri Shimbun: What are Sumitomo Corp.'s strengths?
Shuichi Nagasawa: We entered the media business in 1985, a time of telecommunications deregulation. While it is common for general trading companies to start with infrastructure businesses, what sets us apart is that for nearly 40 years, we have operated on two fronts: deploying hardware, such as cable television, and the content (software) business, including film and software production through companies like Asmik Ace Inc. We have accumulated a wealth of industry connections and expertise within the company.
Yomiuri: Where do you see opportunities for success in overseas expansion?
Nagasawa: Revenue from video content itself accounts for about 25% of the domestic anime market, while the remaining 75% comes from merchandising, such as (character) goods. In overseas markets this ratio is reversed, with video content currently accounting for about 80% of revenue. In other words, while anime viewership is expanding overseas, the merchandising market has not yet been fully tapped. Particularly in emerging markets like Southeast Asia and Latin America, where basic needs such as food, clothing and shelter are now met, spending on entertainment is set to grow next. We believe we can make a significant impact in these areas.
Yomiuri: What is your strategy for turning video streaming into merchandise sales?
Nagasawa: Exclusive distribution on a specific global platform (such as Netflix) would generate substantial revenue, but the audience would be limited to that service's subscribers. To build a fan base through merchandising, we first need an environment where as many people as possible can watch the content.
Remow Co., a company we've invested in, has direct channels to 80 platforms worldwide. Although it's time-consuming, we're building a system where we will be able to secure a broad reach by selling on platforms in each country, then establish local fan bases and proceed with merchandising.
Yomiuri: What about business expansion beyond merchandise sales?
Nagasawa: We're expanding beyond mere merchandise sales to include experiential businesses. These include limited-time pop-up stores, collaboration cafes and theme parks and amusement facilities known as LBE (Location-Based Entertainment).
Yomiuri: What are your future goals for the IP business?
Nagasawa: In the IP business, there are cases where companies fall into a "product-out" mindset -- believing that "if a Japanese product is good, it will sell well overseas" -- or end up making single-item investments that rely on the success of individual works.
We place great importance on adopting a "market-in" perspective tailored to local consumers by partnering with leading local entities, such as Thailand's Saha Group. We prioritize "systematization," in which we invest across the entire value chain, from acquiring content rights to distribution, merchandising and the development of experiential facilities. We aim to grow to a scale on par with industry leaders like Aniplex Inc. (part of the Sony group) within the next 5 to 10 years.
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This article is from The Yomiuri Shimbun. Neither Dow Jones Newswires, MarketWatch, Barron's nor The Wall Street Journal were involved in the creation of this content.
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July 12, 2026 23:50 ET (03:50 GMT)
Copyright (c) 2026 The Yomiuri Shimbun
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