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New Sanrio Flagship Retail Combines Product, Experience and Cafe
On December 11, 2025, Sanrio opened a three-floor flagship complex in Harajuku, Tokyo, combining retail, customization experiences, and the SANRIO café under one roof.
In addition to Flagship store-exclusive merchandise, the store offers interactive experiences such as patch decorating and collectible figure customization, allowing visitors to create personalized products. The café compliments the retail experience with exclusive menu items available only at the Flagship location, extending customer engagement beyond shopping.
By integrating product, experiences, and food service into a single destination, the store creates multiple reasons to visit and spend time with the brand beyond traditional product purchases.
Giving Customers Reasons to Visit
The key insight behind this initiative is that Sanrio is not simply selling products - it's creating multiple reasons for customers to visit a physical location. In Japan, character fandom and “oshi” (fandom) culture are deeply embedded in consumer behavior, particularly among younger generations. Many consumers value opportunities to express their individuality through personalized products and immersive brand experiences. By combining Harajuku-exclusive merchandise with customization services and themed dining, Sanrio creates a deeper level of engagement than traditional retail alone.
According to the company’s earnings materials, the Harajuku store opening significantly exceeded internal expectations, with the patch decoration corner - where customers can create their own personalized merchandise - was highlighted as a particularly popular attraction.
In addition, Sanrio reported continued growth in Japanese customer visits even as the proportion of inbound tourist demand declined. This suggests that the store functions not only as a tourist destination but also as a place that encourages repeat visits from domestic consumers. The success of the format lies in combining multiple forms of exclusivity - not only products that can only be purchased there, but also experiences that can only be created and enjoyed there.
Exclusive Products and Experiences
Companies should view flagship stores not simply as sales channels, but as spaces designed to deliver brand experiences. Sanrio’s Harajuku store demonstrates how retail, customization, and food and beverage offerings can be integrated into a single customer journey, creating a seamless experience from store visit to purchase and extended engagement.
When entering the Japanese market, launching exclusive products alone may not be sufficient. Instead, brands should consider incorporating interactive experiences and location-specific value that customers cannot access elsewhere. From an operational perspective, connecting multiple touchpoints - such as retail, customization, dining, and other experiential elements - can encourage customers to spend more time engaging with the brand.
By designing customer journeys and experiences that cannot be easily replicated online, companies can strengthen visit intent, increase customer engagement, and create stronger differentiation from e-commerce.
Japan Business Revenue: JPY 85.2 billion (+34.1% YoY)
Japan Business Operating Profit: JPY 40.6 billion (+48.8% YoY) store performance.
The Harajuku store significantly exceeded internal expectations following its opening.Note: Sanrio has not disclosed store-level sales, visitor numbers, or spending data for the Harajuku store.
