name is Jiro Kishimura, Senior Managing Director at Sanrio. Thank you for taking the time out of your busy schedules to view today's financial results briefing. I would now like to begin today's briefing, covering first half financial results for the fiscal year ending March 2024, as outlined in the presentation materials. In today's presentation, we will be discussing Sanrio's consolidated financial results, a breakdown of performance by segment in Japan, including theme park operations, as well as a breakdown by region and country overseas, and lastly, the revision to the consolidated forecasts for the full fiscal year ending March 2024. All figures should be interpreted as year-on-year figures. I would like to start with a summary of consolidated financial results on page 3.
A return to normal in terms of economic activity, success of the strategy of developing products with a wide range of Sanrio characters, and enhancements to digital marketing translated into sales growth in Japan and overseas. Ultimately, this resulted in an overall sales increase of 43.4%, as shown here on cell E2. In addition to an increase in SG&A expenses resulting from a return in operating activities, we also incurred costs from investments contributing to planting seeds for regrowth and higher personnel costs resulting from hiring. On the other hand, progress on structural reforms led to a decrease in the cost of sales margin, and this allowed us to post very strong operating profit growth to JPY 13.307 billion, as shown here on cell B5.
Please turn to page 8, where we will be discussing results by headquarters business department in Japan. The product sales division registered an increase in net sales, thanks to a recovery in foot traffic following the downgrade of COVID-19 to the status of a common infectious disease. This resulted in a significant increase in customers at Sanrio stores, which was coupled with the continued increase in traffic from overseas tourists. In the license business, the strategy of developing products with a wide range of Sanrio characters has been successful, resulting in an increase in product launches by existing licensees. Additionally, we also made progress in securing new licensees, and these factors contributed to higher net sales. The results for the global business are linked to the results for our overseas subsidiaries license business, which delivered a strong performance. We will be going over the details later when discussing overseas results.
In light of these results, Sanrio's domestic businesses delivered a net sales increase of 42.8%, as shown here on cell E7. Please turn to page 10, which deals with the theme park business. Puroland saw an increase in domestic foot traffic, coupled with a surge in tourists from overseas. Efforts to raise average park visitor spend were also successful, so ultimately, Puroland registered JPY 1.197 billion in operating profit, as shown on cell B7. Page 11 shows the results for Harmonyl and. Holding new events and raising ticket prices for the second consecutive year made a contribution to an increase in operating profit, which stood at JPY 141 million, as shown on cell B7. Please turn to page 12, where we will be going over the results for the overseas business by region and country.
Collaboration with a popular French brand gave a boost to Sanrio's brand equity, with sales in Europe growing by 41.6%, as shown on cell E2. Additionally, efforts to reduce costs, such as the outsourcing of operations in the Middle East, were successful, allowing us to close the period under review in the black after posting operating losses in previous years. In the United States, the e-commerce business continued posting robust growth, and additionally, the categories of apparel and toys delivered strong results. As such, sales in the United States grew by 62.9%, as shown on cell E5. Sanrio posted a strong performance in Asia overall, with Taiwan delivering an increase in sales and profit after experiencing a bit of a slow start in the first quarter as a result of the negative impact of lockdowns in Shanghai.
Particularly worthy of note were sales in South Korea, which grew by a significant 153.8%, as shown on cell E12. Last year, Sanrio carried out collaborations with a K-pop group, and this allowed us to boost brand awareness and value with the Generation Z demographic. Lastly, the strategy of developing products with a wide range of Sanrio characters was a success in China, with sales growth in the categories of health and beauty and toys and hobbies. As a result, sales increased by 70.8%, as shown on cell E10. I would now like to discuss the revision to the consolidated full-year forecasts on page 14. Realized operating profit results came in at JPY 13.307 billion and significantly exceeded the forecast of JPY 10.3 billion.
Additionally, while a climate of uncertainty remains in light of ongoing conflicts in Europe and the Middle East, we nevertheless expect some stability in terms of company results going forward. In light of this, on August 2, 2023, Sanrio issued a revision to its full year forecast. The specific changes are as stated on rows B and C, with the sales forecast being revised from JPY 84.1 billion to JPY 89.3 billion. Similarly, we have revised the operating profit forecast from JPY 17 billion to JPY 18.8 billion, the ordinary profit forecast from JPY 18 billion to JPY 20.2 billion, and the net profit attributable to owners of parent forecast from JPY 12 billion to JPY 14.4 billion.
The reason behind the expected slowdown in second half operating profit compared to first half results is that we expect a significant increase in investment costs dedicated to regrowth. We are in the final fiscal year of the midterm management plan, and we will be carrying out investment to this end, including amounts that had originally been reserved for the first half. This concludes my presentation. Thank you for your time.
My name is Tomokuni Tsuji, President and CEO of Sanrio. Thank you for taking the time out of your busy schedules to view today's financial results briefing. Allow me to give you a brief progress report for the third year of Sanrio's midterm management plan, which we announced in May of 2021. The current midterm management plan consists of the three pillars of corporate cultural reform, product sales, and overseas structural reform, and planting seeds for regrowth.
Approximately 2.5 years have elapsed since the formulation of the midterm management plan, and with only 6 months left to go, we are proud to announce that we are in the process of achieving the targets we set for ourselves 3 years ago within the scope of these three pillars. Not just within the scope of these three pillars, but we have also made radical changes in other domains, with no areas being off-limits. The reason we were able to do so is Sanrio's significant evolution into execution-oriented leadership and organization. Ultimately, we were able to execute a more sophisticated management approach and profitable business structure and are close to completing the process of consolidation and turnaround. In addition, we have also made progress in making bold and rapid investments that will contribute to our return to growth while also building a stronger foundation.
These efforts have been recognized by the market and by our customers, who hope for great things from Sanrio. In summation, at this very moment, we are now in the process of launching and accelerating Sanrio's second foundation, which we presented to you 3 years ago as our company target. Allow me to briefly review the content of the midterm management plan we announced 3 years ago. This announcement was made during the COVID-19 pandemic, at a time when Sanrio's performance had fallen into the red. We made a serious commitment to rebuilding the company as if it were our second foundation, working toward building an execution-oriented organization and executing consolidation and a business turnaround. Within this, we positioned three key pillars. As you can see from the results, over the past 2.5 years, Sanrio has evolved.
With that being said, I personally believe we are still only partway to a second founding. Our mission over the next decade is for us to transform Sanrio from an IP company into a global entertainment company. It is my intention to hold the reins to make a further dramatic leap forward without becoming overconfident. Sanrio Time, the figures for which we disclose every six months, continues on an upward trend. Sanrio Time is a non-financial KPI we use to quantify and visualize the degree of progress we have made toward realizing Sanrio's vision of one world connecting smiles.
We have expanded the scope of this scale to cover the entire globe and positioned time that customers are absorbed in Sanrio content as a result of efforts to increase Sanrio's mind share, and the time that Sanrio is engaged deeply with our customers as a result of efforts to enhance Sanrio's presence. As such, we now employ an even more advanced calculation method. I will not be going into the details pertaining to this calculation method, nor the logic behind it, but in summation, Sanrio Time reached a consolidated total of approximately 65 billion hours in September 2023, up by approximately 25 billion hours from six months ago. We are currently in the final fiscal year of the midterm management plan and are making progress in the execution of a variety of initiatives within the three core themes shown here.
Within corporate culture reform, we started implementing talent review meetings, whereby company directors themselves discuss and evaluate the performance of all employees on an individual by-name basis to make decisions in terms of salary, raises, and promotions. We also encourage a human resources policy prioritizing talent and cross-department projects. We are making progress in revising salary structures and levels, further enhancing our hiring and employee retention capabilities. In terms of our value creation story, we have begun planning the next three-year midterm management plan for a dramatic leap ahead. We are making progress in formulating policies pertaining to investment direction and the expansion of business domains necessary for Sanrio's transformation into a global entertainment company so that we can convey these to stakeholders and implement them. The third theme is that of continuing active investment activities.
Within this scope, in the second half alone, we will be investing at least JPY 6 billion in initiatives such as Hello Kitty's 50th anniversary campaign, and in initiatives to accelerate development in our Web3 and digital business, and in the edutainment business. We also have plans to make progress in the sourcing of deals contributing to non-linear growth. Shown here is an outline of the company's value creation story for the upcoming 10 years, which we announced in May of this year. Sanrio's goal is that of bringing to life our vision of one world connecting smiles, embodying our corporate philosophy of Minna Nakayoku, that is, everyone getting along together, and in the process, become a company with a market capitalization of JPY 1 trillion. Allow me to use this opportunity to once again outline the company's value creation story to you.
These are grand targets, and we position creativity giving rise to entertainment, shown here on the leftmost portion of the page, as the foundation for value creation, and we'll be prioritizing investment in a value creation engine in large and growing markets, allowing us to secure touch points and exposure to consumers. We also place importance in carrying out investment towards solving social issues through entertainment, and in this scope, the company has already launched its education business and is also working on offering support for creators. As a result, our business domains are businesses that bring smiles and businesses that create new smiles. Our ability to bring about these smiles constitutes a contribution to society through smiles and allows us to address social issues, such as caring for the global environment and achieving higher levels of well-being, which constitute materialities for Sanrio.
Through this value creation story, we are committed to bringing to life our vision of one world connecting smiles, and in the process, become a company with a market capitalization of JPY 1 trillion. We therefore believe stakeholders have good reason to be hopeful about Sanrio's growth strategy. Thank you for your time.
My name is Yasuyuki Otsuka, Managing Director and Officer in charge of the Domestic Sales Division. I would now like to discuss the completion of structural reform within domestic product sales. In broad strokes, this structural reform can be divided into three themes: inventories, development and procurement, and sales. Allow me to start with the domain of inventories. Here, we executed Sanrio headquarters-directed initiatives to enhance inventory management and introduce automatic ordering. These efforts have been very successful, allowing us to make very rapid progress in terms of inventory optimization.
Sanrio recorded tremendous sales growth, so inventories are also up as a function of this, but we have been able to reduce days in inventory by more than 20 days. Next is development and procurement. Here, the main initiatives are the reduction of SKUs, requiring competitive bids in all cases, and expanding common global products. We have been making good progress in the execution of these initiatives. In particular, as it pertains to the expansion of common global products, we have completed a model for local production and internal sales in China, and this has contributed to a sales and profit increase, not just in Japan, but also in the Chinese market. Third is the domain of sales. Here, as a result of the formulation of clear KPIs and the review of existing systems, we have now established a markdown mechanism, which we intend to continue operating going forward.
Second, within the domain of sales, we are making good progress in optimizing store operations. This fiscal year, we are executing scrap and build initiatives and have plans for one store opening and one store closure in the second half. Next is the e-commerce business. The end of the pandemic has translated into strong customer footfall at our physical stores, and additionally, we executed a series of efforts to grow the number of e-commerce online shoppers, and these have been successful, allowing us to achieve our budget target. Lastly, we have also made very good progress in BPR, with these underpinning our business. Overall, the structural reforms outlined in the midterm management plan have progressed and been completed according to plan. Against this backdrop, we are carrying out initiatives for Sanrio to acquire an organizational structure, allowing it to continue generating profits in a sustained manner.
In the next page, I will be discussing current key initiatives beyond structural reform, carried out with the objective of generating profits in a sustained manner going forward. I will also be discussing our expectations and aims for the next midterm management plan. I would like to start by discussing initiatives carried out outside the scope of the midterm management plan. Starting this fiscal year, Sanrio has consolidated the product sales and license businesses into a large organization we have termed the Domestic Sales Division. Within this scope, we started planting seeds toward maximizing group synergies.... For example, utilizing directly managed stores under the remit of the product sales business allows us to amplify merchandise campaigns by licensees, and we have gradually started the execution of large-scale initiatives like this.
Also, within the product sales business, in addition to the execution of structural reform, we are also working to expand the number of loyal users. For example, these are initiatives to maximize the number of second-time buyers and initiatives in the pursuit of mutual customer traffic between stores and e-commerce. We are currently executing these types of initiatives, and we are already seeing some positive results. Going forward, we intend to continue working to expand the number of loyal users in the product sales business. Next, in the license business, this fiscal year, we are in the process of evolving into solution selling. We have already redefined the value of our own offerings and formulated our customer target profile, and together with this, we have also started the adoption of a SFA sales management system. Next, the bottom section details our expectations and aims under the next midterm management plan.
Within this scope, we are currently considering six areas. More specifically, in terms of shared initiatives between the product sales and license businesses, we seek to continue to maximize group synergies, focus on babies and kids with an eye towards securing customers for the next decade, seek to upgrade and expand business models using other companies' IP or UGC, user-generated content, and lastly, maximize the value of customer contact points at live shows, stores, et cetera. These are therefore four shared areas in which we are considering the execution of initiatives. In terms of initiatives in the license business, this fiscal year, we started carrying out value sales and solution sales, and we have plans to further enhance and promote these.
Lastly, in terms of initiatives in the product sales business, we seek to fully leverage the various systems introduced by the company over the past three years to promote further structural reforms. Through the various initiatives I just mentioned and toward the next midterm management plan, Sanrio will be carrying out concentrated efforts to maximize value over the long term and in a sustained manner. This concludes my presentation covering the product sales and license businesses. Thank you for your time.
My name is Kiyoshi Saito, Managing Director responsible for global business. I would like to discuss the completion of structural reform in the overseas business. In China, last year, Sanrio entered a large-scale master licensing agreement with Alifish, and a partial agreement is expected to be signed by the end of the fiscal year, ending March 2024, for the video content production contract between both companies.
Additionally, we continue other initiatives for value creation in the online domain, as e-commerce continues to do well, as does our negotiation pipeline for video game projects. In short, we have growing hopes in terms of IP brand exposure in China. Next is the U.S. market. Back in 2020, this business had a deficit of JPY 1.1 billion, but as of March 31, 2023, we had succeeded in eliminating this deficit in the overall U.S. business, which returned to profitability. Additionally, we continue seeing steady sales and operating profit results in this business. Regarding the expansion of licensing products on a global scale, we succeeded in achieving greater brand exposure through initiatives like a collaboration with a famous national sports brand, and these have translated into positive effects across a variety of categories.
In terms of the product sales business, we have taken decisive action in the execution of structural reform for a shift from directly managed stores to franchise stores. At the same time, we maintained touch points with customers, and e-commerce sales grew well in line with the expansion in the license business as we unlocked synergies here. In Southeast Asia, we established a joint venture with Avex Asia in Singapore and put a management structure in place. Against this backdrop, this joint venture has delivered a strong sales performance this fiscal year in its main market of Thailand. Lastly, Sanrio is working to cultivate IP globally. One example of this being a new 3D animated series. We have created this series, which will be distributed to 85 countries in North America, Europe, the Middle East, et cetera.
In this next slide, I will be going over the major initiatives outside the scope of the midterm management plan. Sanrio is in the process of going beyond structural reform, making advancements in strengthening the cycle of IP brand value creation and monetization. The diagram on page 27 illustrates our value creation cycle, which we developed and put together with the objective of driving further growth in the overseas business. The light green boxes on the left represent initiatives toward brand and IP value maximization, while the boxes in pink on the right represent initiatives to maximize monetization. By executing strategic initiatives in the sequence shown here, namely initiatives 1 through 5, we seek to simultaneously maximize brand and IP value creation and monetization.
We seek to build brand value through owned media and digital media and through merchandising platforms so that we can then leverage this value to acquire new licensees and further maximize monetization with prominent and influential licensees... Sanrio therefore aims to put this positive feedback loop in place, and this is a framework representing the core tenets of our brand business. I would now like to use this opportunity to go over each of these elements in order. Item number one is strengthening customer engagement through owned media in the form of social media, e-commerce, directly managed stores, and franchise stores, et cetera. This forms the starting point for value creation. In particular, we leverage social media in order to deepen our relationship with existing fans.
As of October 2023, Sanrio counted an overseas follower base of approximately 51 million people, with Sanrio content being viewed a total of approximately 700 million times. Item number 2 is strengthening strategic digital partnerships for value creation. Within this, video game content within a very prominent North American video game platform and content in new digital domains in Europe, Mainland China, Hong Kong, et cetera, make a significant contribution to increasing brand recognition and brand value for Sanrio characters, especially amongst the Generation Z demographic, which is the first generation of true digital natives. In particular, Sanrio content within the aforementioned North American video game platform company has been very well received, bringing in over 340 million in-game visitors. Item number 3 is value creation by strengthening strategic merchandising licensing partnerships.
Within this, we have been able to enter into a number of global deals, such as collaborations with a world-renowned European sportswear brand and a prominent Asian bag manufacturer. In North America, we also collaborated with a prominent fast fashion brand, and these efforts have made a contribution to enhancing Sanrio's brand projection worldwide. Additionally, through initiatives with licensees possessing large numbers of stores in China, Southeast Asia, and South Korea, and strong brand capabilities, we have been able to deliver mutual synergies. We have diligently executed value creation efforts through owned media, as shown in item number 1, initiatives to unlock mutual synergies with strategic licensees, items number 2 and 3, and these efforts have translated into a large number of inquiries from new licensees, as shown on number 4. Last is item number 5, pertaining to the strengthening of effective monetization with major licensees.
Sustained efforts in collaboration with a prominent chain of miscellaneous goods stores in China have made a significant contribution to sales. In particular, we are carrying out initiatives related to exclusive merchandise for Hello Kitty's fiftieth anniversary and accelerating merchandise development for a wide range of Sanrio characters. Additionally, in North America, we entered a long-term master licensee agreement with a leading toy company, offering a series of stuffed animals that is increasingly growing in popularity in the United States. Through this, we seek to further enhance our efforts in the category of toys. Additionally, in Europe, we have built a very robust relationship with an apparel group, boasting a number of popular brands and with a brand presence in over 70 markets worldwide and over 1,000 stores. We want to leverage this relationship to further scale up the projects we deal in.
We believe the diligent execution of the five items contained within this value creation cycle has translated into positive effects in that it allows Sanrio to carry out brand and IP value creation while simultaneously advancing monetization. I would now like to discuss the expectations and targets within the next midterm management plan. In China, we intend to continue capitalizing on Sanrio's strong recent results and growth opportunities, and against this backdrop, we'll be further catalyzing its value creation cycle in various business domains. First, we will make maximum use of the Alibaba Group's ecosystem, one of the largest and most powerful IT platforms in China and one of Sanrio's strategic partners. Contract signing took place this fiscal year, and development of short and long-form animation content is underway for dissemination on Youku, which is a platform operated by the Alibaba Group.
You can think of it as a Chinese platform similar to YouTube. We have plans to stream content on this platform with the objective of achieving further brand penetration for Sanrio's brand online. Additionally, we also have plans to capitalize on the resurgence of events held at shopping malls and other venues now that the COVID-19 pandemic has ended. Against this backdrop, we intend to enhance offline events and promotions, achieving greater brand penetration also within the context of in-person touchpoints with customers. In the United States, as in China, we will further promote the execution of our value creation cycle and offer a new entertainment business. First, we will work to further strengthen digital customer contact points. We will be further enhancing our collaboration with the aforementioned North American video game platform company and catalyze digital promotions.
Additionally, we will work to further enhance customer engagement, further expanding Sanrio's owned media presence, with a particular focus on social media. Concurrently, we will be enhancing coordination and synergies with directly managed e-commerce and offer entertainment value in a timely manner. We will also work to strengthen in-person customer contacts in the United States. So that customers can immerse themselves in the world of Sanrio, we will be holding events, offering tailored spaces, expanding the number of specialty stores, and executing the development of strategic entertainment flagship stores. Within focus areas outside of China and the United States, Southeast Asia is a region characterized by various growth markets and high demand for IP, so we will accelerate efforts to capture business opportunities here.
Additionally, we will be carrying out full-fledged market research in India, which is the world's most populous country and shows a high level of economic growth, to assess and leverage potential growth opportunities. Furthermore, in terms of shared initiatives across all regions worldwide, we will be enhancing the development of long and short-form content and make progress in the dissemination of content on owned media, like social media and on influential platforms. Lastly, Sanrio headquarters will work together with local areas to develop style guides tailored to each region and enhance art source libraries popular throughout the world. This concludes my presentation. Thank you for your time.
My name is Wataru Nakatsuka, Managing Director and Officer for the Office to the President and Business Strategy Division. Allow me to go over progress in Sanrio's efforts to reform corporate culture and planting seeds for regrowth.
I would first like to direct your attention to the sections colored in blue on the left-hand side of the page. The first item pertains to progress in corporate culture reform. As President Tsuji mentioned at the beginning, our main priority in terms of corporate culture reform was enhancing management. We have been successful on this front, meaning this function continues to operate at a rather high level and has underpinned a strong results performance by Sanrio over the past three years. The second item within corporate culture reform is reforming the human resources system. Here, the scope of the industry has expanded to an extent exceeding company estimates, and a more active and flexible labor market allowed the company to address the deficiencies in terms of both human resources and capabilities through the recruitment of several dozen extremely talented mid-career hires.
This was accompanied by improving incentives and base compensation for current management, and these efforts have translated into a system making Sanrio a more competitive company. In terms of planting seeds for regrowth, we have made very significant progress in the creation of a framework for new IP creation and in the launch of our education business. I will be going over the details later on, but we already have several case studies of successful character launches through new approaches, and these characters already boast high levels of brand equity. We have already started product sales in our new education business, and we are currently in the process of further refining our marketing and sales strategy towards scaling our business within the scope of the next midterm management plan. Third, we have ESG management and SDGs.
Here, we are making efforts not just to accelerate gender diversity, but also to further improve corporate culture to reflect DE&I. Lastly, we are also carrying out efforts to reduce our environmental footprint, contributing to the reduction of CO₂ emissions. Allow me to delve into the details, starting with corporate culture reform. As I mentioned earlier, we are faced with business expansion and a shifting entertainment human resources market. Against this backdrop, we view it as necessary to execute human capital management measures, positioning the company as a leader in the entertainment industry, as opposed to short-sighted and ultimately ineffective transformative measures. In the first half alone, we have started work on the four measures shown on page 31.
For example, as shown on the upper left-hand side, we are in the process of expanding a highly specialized training framework and lineup, and as shown on the upper right-hand side, we have adopted talent reviews. Here, as President Tsuji mentioned earlier, we made the conscious decision to create an opportunity for the evaluation on an individual by name basis, by directors of all employees, and have integrated this process into the operational workflow of human resources. Human resources are one of Sanrio's greatest assets, so we believe this framework to be well indicated for our company, and we have plans to make progress in the selection and empowerment at an early stage of individuals showing potential. Another initiative is cross-company job rotations, as shown in the bottom left-hand corner, and through this initiative, we will be contributing to employee career development by promoting general and specialty employee skills.
Lastly, in the bottom right-hand corner, we have comprehensive revisions to salary structure and levels. Simply put, the purpose here is to attract competitive talent and enhance employee retention, and we want to plan out this framework in detail, and we are aiming for an increase of approximately 50% compared to current compensation levels for talented employees. We have already started working on some of these initiatives, and we intend to continue making further efforts in corporate culture reform in order to incentivize all Sanrio employees and future hires at Sanrio to realize their full potential. I would now like to discuss the progress in the edutainment business, which is one of the initiatives within our efforts to plant seeds for regrowth.
We newly launched the edutainment business, which is premised on our desire to address social issues pertaining to education and on a launchpad of creativity, which stands as the base for the company's greatest strength, namely, its ability to create kawaii IP. By combining this with other businesses, this will allow us to expand the scope of our business from the vantage point of a business advantage unique to Sanrio.... This is therefore a pivotal touchstone business for the company's evolution from an IP company to an entertainment company. As shown on the left-hand side, the month of March marked the full-scale launch of English language materials for young children. Sanrio has received praise on social media and from English language learning experts for the quality of its learning materials, and this product has been well-received, especially in the demographic of families with preschool-aged children.
The launch of stage two of this product took place earlier this month. Within this product, we offer content stimulating intellectual curiosity and thinking skills in English by leveraging compelling stories and Sanrio characters. We want to make a difference here by building up a stable business foundation that isn't reliant and influenced by trends, and to this end, we intend to scale this business within the scope of the next midterm management plan and make it even more robust. Additionally, we have a business and capital alliance with the Yaruki Switch Group, and as announced on November 7 in a press release, Sanrio's learning materials will be used at the group's 70-plus WinBe schools nationwide. Sanrio will seek to catalyze monetization through these types of licensing deals and continue to expand its education business.
Additionally, as shown on the right-hand side of the page, last month, we carried out the successful launch of an English-speaking attraction at Puroland related to this business. This is an attraction offering an interactive experience leveraging the latest in voice recognition and 3D image projection technologies. This is more than a fun attraction featuring kawaii characters, as it embodies Sanrio's corporate philosophy of Minna Nakayoku, that is, everyone getting along together, by offering children the opportunity to develop their social skills and English language skills while having fun. This attraction has already gained favorable feedback, and since it was designed in a way that also makes it enjoyable for families and young people, we have also launched a marketing initiative with the objective of acquiring new customers for Puroland. Against this backdrop, we will work to maximize return on investment for Sanrio as a whole.
Next is the IP creation business, which we position as another pillar within planting seeds for regrowth. Against the backdrop of rapid changes in terms of consumers' worldview and the overall backdrop of entertainment and content, Sanrio is carrying out initiatives under the direct supervision of President Tsuji toward our two large goals of raising our batting average for characters, which are Sanrio's greatest asset, and leveraging new approaches and methods for IP creation as additional Sanrio expertise. Shown here are three core IP being incubated by Sanrio, all of which were created and are being incubated using a novel approach, and which continue building a business foundation during the current midterm management plan. On the left, we have Hanamaruobake, which, as I have mentioned before, is a character created through a process high in entertainment, combining fandom and competition elements.
We believe the number of followers on social media and engagement metrics to be good barometers for brand equity. In this regard, this character's growth has exceeded initial company expectations, so next fiscal year and beyond, we expect to be able to offer goods and for licensees to leverage this character, as it has reached a level of popularity similar to that of other popular Sanrio characters. Shown in the middle is Petapetaminyon, which is an IP we have been able to incubate primarily through social media without the need to expend large amounts in marketing. Our high-speed PDCA process is producing results, and this has translated into a gradual increase in inquiries for pop-up stores and outlicense agreements. Last, we have JOCHUM, which was created in collaboration with the popular music group JO1.
This is an original Sanrio character, but it has been able to unlock a force multiplier, thanks to JO1's very dedicated fandom. Case in point, in the first half of the fiscal year, we held a pop-up store at Tokyo Station, and this event marked a new record in one-day sales. This underscores our success in building a robust customer base. These types of animated characters offer a good complement to real-life artists, so we intend to apply this approach to multiple other cases going forward. In addition to the three IPs shown here, we are making preparations for the creation and incubation of over 10 other IPs.
We intend to test various hypotheses in terms of what types of media to use and how to appeal to fans and have an emotional impact as we seek to create new characters, also in markets outside Japan as well, toward the next midterm management plan. Next is another recent hit product candidate born out of the IP creation business. Here we have Fragaria Memories, a new content offering. Within less than a month after its announcement, Fragaria Memories already has close to 300,000 followers on X, indicating strong market expectations. As it stands, the main routes within IP creation are the sale of merchandise goods at Sanrio stores, collaborations with other brands, and live character performances at our theme parks. As such, customer experiences are mostly centered around fanciful and Kawaii characters.
On the other hand, Fragaria Memories was designed with female customers who enjoy anime, video games, and manga in mind. This is therefore a unique project contributing to the expansion of Sanrio's IP portfolio. This project was born from efforts by Sanrio to test and examine hypotheses in character creation without being bound by existing frameworks and within its efforts to become a global entertainment company. We entrusted 16 outside illustrators with the design elements for Fragaria Memories, each with their own fandoms, allowing us to achieve a total reach of over 4.2 million followers on X, formerly known as Twitter. We will be announcing specifics pertaining to this content in due time, but this project has had an impact, not just amongst fans in Japan, but also on fans from overseas.
Over the medium term, we have plans to develop voice dramas and music video products, as well as 3D and CG live and stage performances. Naturally, over the long term, we intend to monetize this project through games and anime releases, also with an eye on overseas expansion. We therefore believe stakeholders have good reason to be hopeful about Sanrio's character and content development efforts, contributing to the company's transition to an entertainment company. Last is a discussion of progress in Sanrio's digital strategy. Starting on the left, we have the metaverse business. Last fiscal year, we held the second instance of the Sanrio Virtual Festival, which was attended by 2.38 million people. We have set the bar considerably higher this fiscal year, as we now have an attendance target of 4 million people.
Within this scope, we seek not just to grow our reach in numbers, but also provide a more immersive and fantastical customer experience, also offering people the ability to communicate with other users in VR. We are therefore making strong progress in the development of highly interactive contents. Additionally, three VTubers are expected to debut on December first, as part of our VTuber project, Nyantasia, as first-generation members. Through these and other initiatives, we will work to catalyze the creation of new fan experiences in the metaverse. Shown in the middle is the UGC support business.
Within this business, we leverage the know-how and expertise Sanrio has accumulated over the years within the scope of its character business, as well as the multi-layered relationships it has developed with creators in the development of a service for submitting works centered on character content, where IP holders, creators, and fans can interactively support each other and enjoy each other's art. We will be going over the details at a later date, but what I can reveal here is that this project is scheduled for release in the spring of 2024, and we are making good progress on this front. Last is the fan community business. Within this business, we aim to offer a service as the first Web3 experience for many users and aim for the mass adoption of Web3. This service leverages not just blockchain technology, but generative AI technology as well.
Within this scope, we will seek to offer new entertainment experiences to users, while at the same time getting them to experience the adoption of NFTs and crypto wallets. Regarding this business, too, we will be sharing details with stakeholders in due time, but what I can reveal here is that this project is also scheduled for release in the spring of 2024. We believe that Sanrio's new businesses, namely the edutainment business, the creation and development of characters using novel approaches, and digital experiences in the domain of Web3, have grown to become important pieces in Sanrio's evolution to become a global entertainment company. We therefore have great hopes for developments going forward. Thank you for your time today. We would now like to proceed to today's Q&A session. Thank you for all of your question submissions today.
Please feel free to direct your questions to the email address shown on the screen. In the interest of fairness, we will be allowing only one question per person.
Allow me to read the first question pertaining to domestic sales. Sanrio carried out a number of initiatives, the most prominent being structural reform measures within the scope of the midterm management plan, and these allowed the domestic product sales business to return to the black. Second quarter results, too, showed a very significant increase in profitability, with an operating profit margin of 16%, and this is something I am paying close attention to as an investor. Going forward, I believe the company will be executing further sales initiatives and structural reforms.
So could you give us an idea of how much further improvement investors can expect in terms of sales and operating profit in the domestic product sales business, as well as in terms of sales and operating profit margins? I would appreciate it if the company could share its outlook as it pertains to Sanrio's growth potential, especially in terms of profit growth prospects and in terms of profitability. Yasuyuki Otsuka, Managing Director and Officer in Charge of the Domestic Sales Division, will be answering this question.
Thank you for your question. My name is Yasuyuki Otsuka, Managing Director and Officer in Charge of the Domestic Sales Division. Allow me to answer your question pertaining to the growth outlook going forward. I will be addressing the respective outlook for sales and profitability.
Sales results are highly dependent on the scale of the increase in inbound tourism, foot traffic from China, and the degree of growth in new domains and by new characters. With that being said, Sanrio always pursues growth exceeding the levels seen in the overall character market in Japan, so we believe strong growth is achievable here. In terms of profitability, we view current profit margin levels as being adequate. Within the scope of the current midterm management plan, we formulated and executed a number of strategies to stop losses and improve profitability, and we believe these strategies have been very successful.... These included a more selective approach to expenses and investment, and profit didn't just rise in proportion to the rapid increase in sales, but rather as a result of Sanrio's strength.
In order to maintain growth going forward, we believe there is a need to allocate expenses and investment in an adequate manner. So because of this, we don't expect another great leap in profit margin. UNIQLO is a reference company when it comes to specialty store retailer of private label apparel companies, of which Sanrio is one, and they boast an operating profit margin of around 13% for their domestic operations. So we view current operating profit margin levels for Sanrio as being adequate.
Allow me to read the next question: There is ample demand for oshikatsu-related services in Japan, that is, services helping fans support their favorite singers and celebrities. Furthermore, markets related to oshikatsu are expected to see further growth going forward.
Could you share Sanrio's analysis of recent trends in these markets within the scope of the product sales and license businesses, and its approach to business opportunities going forward? This analysis need not exclusively focus on oshikatsu. Yasuyuki Otsuka, Managing Director and Officer in charge of the Domestic Sales Division, will be answering this question.
My name is Yasuyuki Otsuka, Managing Director and Officer in charge of the Domestic Sales Division. Naturally, this market for oshikatsu-related service is an area Sanrio is already focusing on. As it stands, the oshikatsu market encompasses a wide range of industries, so it's not just pop music idols, but also professional athletes, Japanese comedians, and also characters like the ones offered by Sanrio and anime characters. This is therefore a diverse market.
Against this backdrop, Sanrio has designed its oshikatsu business not with a focus on too many things, but rather, as Managing Director Nakatsuka mentioned earlier, we employ a more selective approach. Sanrio approaches this market as a whole, structuring its business from the perspective of helping fans carry out diverse types of oshikatsu. A representative example of this is our Enjoy Idol series of oshikatsu support merchandise, which is a merchandise line we can offer to the market as a whole without the need to niche down to specific industries, characters, or celebrities. This, therefore, allows us to convey and offer our value proposition to a greater number of customers, to the market as a whole. Going forward, we will work to develop and offer products and services geared toward each facet of the oshikatsu process, and in doing so, grow our share in this market.
An app facilitating fans' oshikatsu activities is scheduled to be launched in January 2024, as we have plans to provide value not just in the form of merchandise.
Allow me to read the next question. In today's presentation, you gave stakeholders a progress report and discussed the outlook going forward regarding the Metaverse business, the UGC support business, and the fan community business within the digital domain. You also discussed the company's value creation story for the upcoming decade. My question, therefore, pertains to value creation within the digital domain. Sanrio expects to increase the number of digital touchpoints with consumers through initiatives in the digital domain. Against this backdrop, what new value creation opportunities does the company intend to create? Also, what are some differences between traditional in-person touchpoints and character IP-oriented value creation?
Furthermore, I believe new value creation opportunities will translate into new profit opportunities, but could you discuss financial value generated through initiatives in the digital domain, especially as it pertains to long-term effects on company results? Wataru Nakatsuka, Managing Director and Officer for the Office to the President and Business Strategy Division, will be answering this question.
Thank you for your question, which I believe pertains to the way the company expects initiatives in the digital field to translate into value creation and profit generation opportunities. In broad strokes, we believe we can generate two value creation opportunities within initiatives in the digital domain. First, within the scope of contents and solutions directly offered by Sanrio, we believe we can offer experiences closer to consumers' daily lives.
Compared to traditional value creation through in-person touchpoints and character IP, we believe that by leveraging things like VR technology, we can offer more immersive and emotive experiences, bringing Sanrio closer to consumers. Second, we want to offer opportunities and a platform for creators, so that everyone can have the ability to become a creator and offer contents and merchandise to people all over the world. By leveraging blockchain technology, we seek to offer creators a safe environment in which to execute their craft and to develop services allowing fans to support their favorite creators.
These value creation opportunities and spaces only really make sense against the backdrop of changes in the way people consume content and in their approach to entertainment, and we want to operate our business in a way that allows for the birth of characters and content adapted to the market landscape over the next number of decades. In terms of new profit-generating opportunities, Sanrio seeks to support the development of the global economic sphere for creators. As such, as global expansion of the global economic sphere for creators takes place, this will lead to the progressive growth in market scale for the global IP business.
In the past, Sanrio has carried out collaboration projects with IP from other companies and from individual creators, and we have also contributed to expanding the product scale of IPs from companies other than Sanrio through master licenses for IP from other companies. By securing even stronger digital touchpoints with Sanrio fans, we intend to make a contribution to the overall IP business, and we believe this will allow the company to derive financial benefits from this. Thank you for your question.
Allow me to read the next question: March saw the launch of Sanrio English Master educational materials, and this marked the company's first foray into the field of education. It was therefore with great interest that I listened to your progress report and outlook for this business going forward.
Through the expansion of existing businesses, especially the license business, which boasts sales and operating profit margins of over 70%, over a short period of time, Sanrio has been able to enhance its earnings capacity. In light of this, and as an investor, I have hopes regarding Sanrio's ability to deliver further profit growth. I can, to a certain extent, follow the reasoning behind the launch of the edutainment business against the backdrop of Sanrio working to develop as an entertainment company. However, from a financial standpoint and as an investor, I am concerned about the impact this new business could have on profitability for the company as a whole. Could you share your thoughts on the company's outlook as it pertains to profit growth for Sanrio as a whole, resulting from the further development of the edutainment business?
More specifically, could you share with us your outlook in terms of an overall contribution to Sanrio's overall business in terms of operating profit and sales and operating profit margins? Wataru Nakatsuka, Managing Director and Officer for the Office to the President and Business Strategy Division, will be answering this question.
Thank you for your question. My name is Wataru Nakatsuka, Managing Director and Officer for the Office to the President and Business Strategy Division, and I will be answering your question, which I believe pertains to the role played by the edutainment business within Sanrio's profits. I believe it plays two important roles. The first is that this business makes a contribution by offering a stable business foundation that isn't affected by fads and short-lived trends.
Developing and maintaining characters that continue to appeal to multiple generations of customers is a rather tall order, and additionally, we operate in the entertainment industry, which tends to be affected by fads and short-lived trends to some extent. On the other hand, the education business tends to have more universal and permanent customer needs. So by building up a robust customer base here, we believe the edutainment business can make a contribution to profit stability. Second, up until now, Sanrio had operated a character business, but we now want to expand the domains we operate in, turning ordinary services and products into fun experiences that bring smiles to customers' faces.
Success for the edutainment business is addressing Sanrio's materialities by, for example, creating smiles and value in the domains of childcare, nursing care, financial literacy curriculum, and well-being, allowing us to acquire the expertise necessary for us to undergo a transformation to become an entertainment company. Next, I would like to address your question pertaining to scale growth in terms of operating profit and sales. Having a robust customer foundation and reliable reputation are two important factors in the education industry. This means the barrier to entry is also quite high, and consequently, few startups and players from other industries try to enter this field. Sanrio boasts strong corporate brand equity, so by leveraging this, we believe we can achieve a competitively dominant position in terms of sales and profits.
For example, we have released Sanrio English Master, a collection of home learning educational materials for toddlers, and after optimizing SG&A expenses, profits account for approximately half of the sales price. Once we are done amortizing video production costs, we believe this will have a very positive effect on earnings. In terms of the scale of this market as well, the amount spent per child on education in Japan continues on a strong upward trend, and this trend can also be seen in other Asian countries. In light of these trends, and given the strength of Sanrio's brand equity, we believe we have a winning opportunity here. Thank you for your question.
Allow me to read the last question. Following the end of COVID-19, the world is now witnessing what has been termed "revenge spending," with consumers spending more than they otherwise would after enduring three pandemic years.
What is Sanrio's outlook regarding this temporary increase in spending, and how does it square with sustained spending going forward? Looking at second quarter monthly park visitor figures for Sanrio Puroland in August and September, it would appear that these are losing momentum somewhat compared to fiscal year ended March 2020 results. Aya Komaki, President and CEO of Sanrio Entertainment, will be answering this question.
My name is Aya Komaki, President and CEO of Sanrio Entertainment. Thank you for your question, which I will now endeavor to answer. Indeed, we are still benefiting from revenge spending by consumers, but we believe the extent of post-COVID spending sprees is on a gradual decline.
In terms of our strategy to promote sustained visitor traffic to our parks going forward, in order to ensure we have an accurate understanding of market needs, we carry out market research and target analysis at regular intervals, including through the use of customer surveys. We then execute a cycle through which we take this data and promptly incorporate it into the planning for shows, services, and new events. Through this, we wish to attract various customer demographics, such as visitors from overseas, as well as from within Japan. As you mentioned in your question, momentum for the months of August and September was down compared to the fiscal year ended March 2020, and two factors contributed to this. The first factor is that now reservations are required for visitors to enter Puroland.
In light of this, we control the number of visitors in order to prevent excessive congestion, meaning that we put a cap on the daily number of visitors during the peak season, and this led to a decrease in visitors in August and September compared to the fiscal year 2020 benchmark you mentioned in your question. On the other hand, we continued executing variable pricing, and this led to an increase in park visitors on weekdays. As such, we believe the total number of visitors for the year as a whole will end up being rather similar to fiscal year ended March 2020 figures. Additionally, the fact we were able to reduce park visitor congestion has translated into greater customer satisfaction, and we believe this will lead to an increase in repeat visitors. The second factor pertains to the fact that we reviewed discount initiatives and lower-priced events.
Pre-COVID, we held a number of discount initiatives and offered lower-priced events with the objective of maximizing the number of visitors. We have since revised our strategy, and this led to a slight decrease in park visitors. On the other hand, this review allowed us to charge higher and more adequate prices for tickets. This concludes my answer. Thank you.
We have reached the end of today's Q&A session. Over the coming days, Sanrio's Investor Relations Department will be answering questions we were unable to address here today due to time constraints. This concludes Sanrio's financial results briefing for the first half of the fiscal year ending March 2024. Thank you for your time today, and we request your continued support going forward.