Tomy

Lore & Background

The company was named Tomy as an abridgement of Tomiyama, the founder's surname. Starting as a manufacturer, Tomy had the largest product development team in the toy industry and received plaudits for its technology. By its third generation, president Mikitaro Tomiyama decided to streamline the company to be more competitive with wholesaler Bandai, which developed products more quickly and was more appealing to television properties requiring fast turnaround. Despite opposition, Tomiyama aggressively pursued TV licenses such as Akakage, Giant Robo, and Osomatsu-kun. After his son told him Tomy's toys were bad and that he wanted to work for Bandai, Tomiyama created the moderately successful Zettai Muteki Raijin-Oh (then Genki Bakuhatsu Ganbaruger), but the product development team followed with Nekketsu Saikyō Go-Saurer, which was a catastrophic failure. Tomy then established a relationship with Shogakukan and created the successful Wedding Peach and Let's & Go.

Tomy learned about the growing popularity of Pokémon through the monthly CoroCoro Comic and obtained the commercial rights while Bandai was busy with Tamagotchi. Tomy acquired rights to commercialize a wide range of merchandise, mainly toys, and released the 'Monster Collection' of figures the next year. The Pokémon anime became a huge hit, and sales of related products doubled. The success of the Pokémon license in 1996 significantly boosted Tomy's domestic market share, solidifying its position as one of Japan's top two traditional toy manufacturers alongside Bandai. In 2001, competitor Takara's hit franchise Beyblade and Pokémon's slump saw Takara regain second place and Tomy fall to third. Beyblade subsequently faltered, adversely affecting Takara's fortunes, and Tomy merged with the suffering company to become Takara Tomy.

After the merger, the company decided to use the name 'Tomy' in international subsidiaries and 'Takara Tomy' in Japan, because Tomy had built considerable international brand recognition while Takara's products had been sold and branded by other toy companies such as Hasbro. The financial cost of rebranding was also prohibitive. In Western media, the merger was typically characterized as a 'takeover' of Takara by Tomy, likely because several years of losses had put Takara in a financially weakened state, although Takara had significantly higher sales than Tomy. However, the companies' management teams had previously discussed merging, including at times when Takara appeared stronger. Under Japanese corporate law, the move was a merger on an equal basis.

Reader's Guide

Tomy's significance lies in its long history as a major Japanese toy manufacturer and its ability to adapt through strategic licensing and mergers. The company's early success with the B-29 friction toy and Pop-up Pirate established its reputation, but its most transformative moment came with the acquisition of the Pokémon license in 1996, which doubled sales and propelled Tomy to a top position alongside Bandai. This period marked a peak in growth and solidified its domestic market share. The 2006 merger with Takara created a combined entity that leveraged Tomy's international brand recognition and Takara's popular franchises like Transformers and Beyblade. The merger was legally equal but often perceived as a Tomy takeover due to Takara's financial struggles. Post-merger, the company maintained both brand names in Japan while using Tomy globally, reflecting a pragmatic approach to brand equity. Tomy's legacy includes a broad range of products from its own properties like Tomica and Plarail, as well as licensed merchandise for Pokémon, Thomas & Friends, and Disney. The company also expanded through acquisitions such as RC2 Corporation and its Learning Curve sub-brand. Tomy UK, founded in 1982, successfully brought toys like Zoids and Pop-up Pirate to Western markets, operating under the slogan 'Trust Tomy'.

Did You Know?

• Tomy was originally named Tomiyama Toy Manufacturing Company after founder Eiichirō Tomiyama.
• The company obtained the Pokémon commercial rights after learning of its popularity through CoroCoro Comic, while Bandai was busy with Tamagotchi.
• After the 2006 merger with Takara, the company uses the name 'Tomy' internationally and 'Takara Tomy' in Asia.
• Tomy UK was founded in 1982 and its traditional slogan is 'Trust Tomy'.