The Moomins in Japan: How to Build a Profitable Licensing Business Overseas?

This case explores the international expansion of Moomin Characters Oy, a Finnish family-owned company, in Japan. The Moomin trademark is the key asset of Moomin Characters Oy in its international expansion, and licensing of this trademark to international licensees generates most of the income. Today the company has more than 800 licensees world-wide. Japan has been one of the most important markets for Moomins since the late 1960s with a strong brand recognition. While the Japanese market had grown significantly during the 1990s, the licensing revenues were declining in the 2000s due to the fierce competition in the animation industry. Roleff Kråkström joined the company as the new CEO in 2008. In the 2010s Roleff introduced successful changes to the licensing activities in Japan to turnaround the business, but now a need has emerged to further reorganize the company's activities in Japan and clarify its long-term strategy in this key market. This case introduces the challenges of expanding internationally through licensing agreements, and the possibilities of combining licensing with other growth strategies. It also highlights the opportunities of enhancing the Moomin brand value in Japan and expanding the product offering to Japanese consumers. Finally, the case describes the process of international expansion of a small family-owned company and its capacity to deal with the challenges of firm internationalization. The case ends in November 2022.