Toy manufacturer Sekiguchi, which is celebrating its 106th anniversary this year, is best known as the company behind the Monchhichi plush toy, which has enjoyed great popularity since its market launch in the 1970s. We spoke to the brothers Toshitaka Yoshino, who has headed the company as Managing Director since 2002, and the Global Manager Yoshitaka Yoshino about how the Monchhichi, which celebrates its 50th anniversary this year, became a globally recognized figure, Sekiguchi’s position on the German market and its vision for the future.
J-BIG: Since their introduction in the 1970s, Monchhichi dolls have enjoyed great popularity in Japan, Germany and other countries around the world. When was the Sekiguchi company founded and how did the idea for the world-famous doll come about?
Toshitaka Yoshino: Sekiguchi was founded 106 years ago, in 1918. At that time, the main activity was to export dolls made of celluloid to foreign countries. After the war, the company succeeded in introducing a new material, soft vinyl, and producing dolls and other items from it. In the 1960s, however, many Japanese companies were struggling with foreign exchange problems and rising labor costs, and Sekiguchi shifted its business from contract manufacturing for abroad to developing new products and selling them in Japan itself. At first, we were still making educational dolls, like the “Popo-chan” doll made by the Japanese company People today, but eventually we started producing plush toys – and it was in this context that the “Monchhichi” was born in 1974. Incidentally, this was preceded by a product called “Kutakuta Monkey”, which sold well. Monchhichi was introduced as its “little brother”, so to speak. Sales of the younger sibling exploded in Japan already at the market launch and this year Monchhichi celebrates its 50th birthday.

J-BIG: Was there a strategic sales campaign that led to explosive sales figures right from the start? Or did the success come about more naturally through word of mouth?
Toshitaka Yoshino: At that time, we were not yet in the position to carry out a comprehensive marketing campaign in Japan. Therefore, we owe the rather accidental sales success to the organic spread of the product. However, due to the popularity and sales figures, we subsequently exhibited Monchhichi at the Nuremberg Spielwarenmesse in Germany. As a result, an Austrian sales agency approached us for the first time in 1975, and Monchhichi soon became an even bigger success in Europe, especially in German-speaking countries, than in Japan.


J-BIG: Had you exhibited at the Nuremberg Spielwarenmesse before?
Yoshitaka Yoshino: It is difficult to determine today whether Sekiguchi was exhibiting at the fair at that time or not, but it is certain that the company had often visited the fair in the past and gathered information there.
J-BIG: Did you already receive requests from Germany to produce celluloid dolls, for example, before Monchhichi was launched on the market?
Toshitaka Yoshino: Before Sekiguchi concentrated on the Japanese domestic market, production orders mainly came from the USA, not from German-speaking countries. On the other hand, Germany was the first country in which Monchhichi was sold internationally. Later, we also expanded into the Benelux countries and Scandinavia, but Germany always remained the largest market.
J-BIG: What do you think are the reasons for Monchhichi’s popularity, especially in Germany?
Toshitaka Yoshino: We have sold Monchhichi not only in Germany, but also in many other countries and regions and have never had a sales problem. For example, through our license agreement with Mattel, the largest toy manufacturer in the USA, we have managed to achieve very good sales figures in America. We are convinced that the Monchhichi figure itself has a special charm as a product. In addition, human-shaped toys sell differently depending on the region, while animal-shaped products are popular all over the world. Monchhichi’s animal design is therefore certainly another reason for its popularity in many countries.
Yoshitaka Yoshino: As far as popularity in Germany is concerned, the Austrian sales agency that was the first in Europe to include Monchhichi in its range introduced us to many German companies at the Nuremberg Spielwarenmesse, which we believe was also an important factor.
Toshitaka Yoshino: Even if you look at the subsequent sales to other European countries, the major role of the German-speaking countries for us – also in comparison to the UK – is striking. In this respect, it was perhaps a stroke of luck that the first person we met when setting up our European business came from a German-speaking country.

J-BIG: Did the Monchhichi boom take place in Germany at the same time as in Japan in the 1970s? And how did sales develop afterwards?
Toshitaka Yoshino: Monchhichi became known in Germany in the late 1970s, shortly after its explosive popularity in Japan. At that time, the products made in Japan were exported to Germany. By the mid-1980s, however, they were not selling particularly well in either Japan or Europe. As a result, sales were temporarily discontinued in all countries around the world except for a small part of France. In the early 1990s, there was a revival in which Germany played a major role. Hermann Schneider, the former general manager of Schleich, a major German toy manufacturer, approached us personally and suggested that we bring Monchhichi back onto the market. As Mr. Schneider was a very well-known figure in the toy industry, we decided to revive sales in Germany with him as our sales representative. Sales in Japan were also resumed accordingly.

J-BIG: Were there any changes in the design or development of the Monchhichi after this revival?
Toshitaka Yoshino: Yes, there have definitely been changes: Even though we had originally already developed a wide variety of products, we have further increased the product range since the relaunch. However, the sales concept has changed somewhat before and after the relaunch. In the 70s and 80s, we sold the Monchhichi itself and, separately, changeable clothes and furniture. Now we no longer sell furniture or separate clothes, but a variety of different Monchhichi that are already wearing costumes. The concept thus changed: what used to be for children to play with is now more for the adult generation to collect.

J-BIG: How have the distribution channels and sales approaches changed since then?
Toshitaka Yoshino: This does not only apply to Germany, but as the distribution system itself has changed a lot since then, the distribution channels and methods have changed accordingly. For example, after the resumption of distribution, Sekiguchi began to negotiate directly with retailers through agents such as department stores and toy wholesalers. Today, however, the distribution environment has changed, and we are developing our products for a variety of distribution channels that sell Monchhichi.

J-BIG: Did you previously have a branch in Germany?
Toshitaka Yoshino: We have never opened an office in Germany or hired employees. However, we now operate through a small office that we have set up in the Netherlands. This Dutch branch is also responsible for the entire German market. And unlike in other European countries, where distribution has often been entrusted to a single company, in Germany we have traditionally dealt directly with many retailers. We have therefore always done business with several companies in Germany at the same time.
J-BIG: Regarding the size of Sekiguchi: How many employees do you have in total and what is your turnover?
Toshitaka Yoshino: Today we have a site in Japan and the Netherlands, with 35 employees in Japan and two in the Netherlands. In the 1980s, we had a few more employees on the Japanese side, but conversely, we had no employees in Europe at that time.
Yoshitaka Yoshino: The total number of products sold worldwide today is estimated at around 80 million, as the cumulative total from a survey from 1974 to five or six years ago was around 70 million products. The average number of products delivered to Germany in recent years has been around 70,000 per year. Sales in Germany last year amounted to around 30 million yen.

J-BIG: What is the current market situation?
Toshitaka Yoshino: The most important markets today are Germany, France, the Netherlands and Japan. So Germany is not the only country that stands out anymore, because you can say that all these countries are large markets at the same level.
Yoshitaka Yoshino: There was also a big boom in China about ten years ago, which led to strong growth in the Chinese market. Since the resumption of sales in the 1990s, production also has been taking place in China – and continues to do so today.

J-BIG: Sekiguchi is a family business and is run by your family. How did it come about that you, as brothers, run the company together?
Toshitaka Yoshino: Before I became Managing Director, my uncle held this position. I joined the company to learn how to run a business from my uncle. And of course, I was also attracted by the fun of the toy business. But I didn’t join Sekiguchi from the beginning with the intention of taking over the management of the company, I actually wanted to start my own business after learning about business management from my uncle. In the end, however, I took over the management.
Yoshitaka Yoshino: Our uncle, the former CEO, had six brothers, and one of his younger brothers – another uncle of ours – ran a plush toy company called Sun Arrow at the time. Sun Arrow is the same company that still makes plush toys like “Totoro” today. I worked for Sun Arrow for about 10 years before I joined Sekiguchi. During that time a lot happened, my brother became the CEO of Sekiguchi and eventually I left Sun Arrow and started working at Sekiguchi.
Toshitaka Yoshino: Incidentally, the founder of Sekiguchi was our great-grandfather, who established a family code that has been passed down in our family for generations: “A toy business must never get too big, otherwise it will fail”. We still abide by this law today and do not expand the company unnecessarily but manage it with the aim of long-term corporate governance.

J-BIG: The Monchhichi is celebrating 50 years of existence this year. Are there any campaigns or new projects to mark this anniversary?
Toshitaka Yoshino: To mark the 50th anniversary, we have founded a new company in Japan, Monchhichi Ltd. And the special thing about it is that Monchhichi itself is the CEO of this company. This means that the main aim of this new company is to give the Monchhichi figure even more independence and thus support the regional revival in Japan. In addition, the anime series “Heidi”, which is well-known in both Germany and Japan, is celebrating its 50th anniversary this year as well. On this occasion, we have entered into a Heidi cooperation with the Heidi-associated company and launched a product called “Heidi Monchhichi”. In addition, we have already taken steps to have Monchhichi used in the design of stationery, for example. However, we feel that we have not sufficiently conveyed the charm and potential of Monchhichi, which is actually a three-dimensional character and is still strongly perceived as a soft toy. We would therefore like to establish the Monchhichi character more strongly as a brand in the future in order to increase its value and also make a contribution to society with Monchhichi as IP (Intellectual Property).
J-BIG: Do you have an example of the use of Monchhichi as IP?
Toshitaka Yoshino: For example, we produced a CG series of Monchhichi in France. Although this didn’t directly translate into product sales, it was very well received as an animation and was broadcast in many countries.

J-BIG: Finally: what are your visions for the future?
Toshitaka Yoshino: We have two main goals for the future: the first is to further increase the goodwill of Sekiguchi and at the same time make a contribution to society. The foundation for this are the values that characterize us as Sekiguchi and which we want to continue to pursue as a team. Secondly, we must ensure that the company is passed on to the next generation. In both Germany and Japan, there are many companies with a long history, and it is a great honor and challenge to ensure that these companies are passed on to the next generation. Therefore, in addition to increasing the brand value of Sekiguchi, it is a major goal for us to continue what has been achieved for 105 years long into the future. It is not our vision to grow the company in one fell swoop, for example by investing huge sums of money, only to find that the company is no longer viable and becomes part of a large corporation. We want to protect and develop our company and its unique brand in the long term, following the family tradition of not expanding excessively.
