Latest / The Resilient Retail Game Plan - retail insights, retail trends and best practices / The Jellycat drama explained
Transcript
- 0:00From viral plush toys to furious stockists, jellycat's story
- 0:04isn't all cute and fluffy. Today we're exploring what's really going
- 0:07on behind the British success story that has been hitting the headlines for all
- 0:11the wrong reasons. I just thought it was very strange because I think in our
- 0:15previous communications I'd shown her my Instagram to be look, I've got a decent
- 0:18following. They'd made it very awkward placing orders
- 0:22as well, but until the letter came we didn't know any more. You
- 0:26know, prior to that. With them it's about brand positioning and
- 0:29perception, whether we agree with that or not.
- 0:35Welcome to the Resilient Retail Game Plan. I'm Catherine Edley and in the
- 0:39next few minutes you're about to get powerful real world retail strategies
- 0:42from insights shared both from my guests and myself, backed up
- 0:46by my 25 years in the retail industry. Keep listening to
- 0:50learn how to grow a thriving, profitable product business. Let's
- 0:54jump in with this latest episode.
- 0:59What fascinates me about this story is that it's not only a thought provoking
- 1:03and cautionary tale about what happens when a brand takes off, but it's
- 1:06a story about a brand I've long been aware of as both a retail expert
- 1:10and a parent. So when I started to see the backlash on social
- 1:13media from shops who had been dropped by jellycat, I knew I wanted to put
- 1:17together a podcast episode to really dive into the details.
- 1:21It all started for me when my daughter was a baby and someone gave her
- 1:25a bashful bunny, one of those classic Jelly Cat to that's instantly
- 1:29lovable. A few years later, JellyCat launched the
- 1:32amusables range, inanimate objects with smiling faces and dangly
- 1:35legs. That was the year we bought her the smiling watermelon for her
- 1:39eighth birthday and it quickly became one of her favorite toys.
- 1:42Jelly Cats were such a regular feature of her Christmas and birthday list that when
- 1:46she turned 14, we threw a Jelly Cat themed birthday party.
- 1:50I spent hours decorating food with tiny smiling faces just like
- 1:54the amusables. And she loved it. The centerpiece was a cake made
- 1:57to look just like the Jelly Cat birthday cake plush. Last
- 2:01year we even made the trip to Selfridges to visit the fish and chips Pop
- 2:05up, which was ended up being one of my most popular reels on
- 2:08Instagram. But this story isn't about me and my family. One day I
- 2:12shared on Instagram that I was planning an episode about jellycat. I was
- 2:15overwhelmed by the response. People told me how deeply they
- 2:19care about this brand and some Retailers even admitted that Jelly Cat
- 2:23has been at the heart of their business for the past 10 years.
- 2:27What's making the story story so difficult is that Jelly Cat always felt like
- 2:30one of those rare, special brands that got it right. They had
- 2:34the design, the creativity, the magic, and they had the loyalty of
- 2:38independent shops who loved selling their products. Now that
- 2:41relationship feels fractured. It's a reminder of how quickly things can
- 2:45shift, even for a brand that seems untouchable. You can have a
- 2:49beautiful product, loyal stockists and years of goodwill and still find
- 2:52yourself in the middle of controversy when things go wrong. So who
- 2:56are the company behind jellycat? Well, as a A brief
- 3:00history they were founded in 1999 by two brothers, Thomas and
- 3:04William Gattaca. The founders are notoriously publicity shy
- 3:07and there are very few interviews or even quotes available from them.
- 3:11The company grew, but things really took off in 2018 with the launch of
- 3:15the inanimate objects with cute smiley faces. The Amusables
- 3:19the Amusables were a major hit, tying in with the Kidult trend
- 3:23where adults spend money on items more usually associated
- 3:27with children, such as soft toys. According to a
- 3:302024 Guardian in Article, the brothers first hit the Sunday Times
- 3:34rich list in 2018 when the business was valued at
- 3:37155 million. By 2022,
- 3:40revenue was reported to have jumped 72% on the previous
- 3:44year to 146 million, then grew another
- 3:4837% to 200 million in 2023
- 3:52with a whopping 67 million pounds of pre tax
- 3:55profit. So the company was growing fast
- 3:59and in 2022, for the first time, the brothers
- 4:03stepped back from the leadership of Jellycat. They brought in
- 4:06Arno Mesal, who joined Jellycat in
- 4:092022 as CEO. It appears
- 4:13that the business was growing rapidly and they decided to bring someone in with
- 4:16previous experience in a global company. For
- 4:20example, Arnault's previous company Ren Skincare, was quoted as
- 4:24having a 1.2 billion pounds turnover in
- 4:272023. Interestingly, in light of what has happened recently
- 4:30at Jellycat, Moselle, who was CEO at Rennes from
- 4:342017 before leaving for Jellycat in early 22,
- 4:37presided over a move to refocus and reposition Ren
- 4:41not only as a more sustainable brand, but also away from mass
- 4:45market retailers and towards premium beauty. This is worth
- 4:48bearing in mind as we continue through our story.
- 4:59So jellycat has become in recent years, years more than just a toy brand.
- 5:02It's a cultural phenomenon. On TikTok and Instagram,
- 5:06dedicated fan accounts post daily about their collections, racking
- 5:09up millions of views and Jelly Cat hunts, where collectors scour
- 5:13shops for rare or retired designs have become a trend in their own
- 5:17right. One of the biggest drivers of this viral moment has
- 5:20been the Jelly Cat Pop Ups. These aren't just a place to buy a plush
- 5:24toy, they're full blown experiences. They started in
- 5:28late 2023 in New York where Jellycat partnered with
- 5:31FAO Schwartz to launch the Jellycat diner where customers could
- 5:35order a plush burger or milkshake and watch staff form a
- 5:39playful cooking routine before serving the toy on a tray. It
- 5:42became a social media sensation with reservations selling out and
- 5:46tiktoks of the experience going viral. Then came the Paris
- 5:50Patisserie Pop up in Galerie Lafayette Aussmann, a luxurious
- 5:53French inspired setup where plush pastries were wrapped like high end
- 5:57treats. The setting alone inside one of Paris's most
- 6:01premium department stores was a statement. The Jelly Cat was positioning
- 6:04itself as a lifestyle and design brand, not just a children's toy company.
- 6:08And by the summer of 2024 London got its own version with the
- 6:12fish and chips Pop up at Selfridges. The queues went around the block and my
- 6:16own reel from that event became one of my most viewed posts of the year.
- 6:20It was clever. Jellycat tapped into British nostalgia while
- 6:24pairing it with One of the UK's most prestigious retailers, reinforcing the brand
- 6:27as quirky, aspirational and fun. And let me tell you,
- 6:31it was mostly adults at the Selfridges Pop up and they were
- 6:35spending hundreds of pounds on these limited edition
- 6:38items. These pop ups, they weren't just marketing stunts. They
- 6:42signaled jellycat's ambition to move up market and cement its reputation
- 6:46as a brand with premium design led credentials.
- 6:49But alongside the success stories, a darker side started to
- 6:53emerge. Police are hunting masked thieves who broke into an endless shop
- 6:57by ramming the door with a car and a wooden plank. CCTV
- 7:00footage shows one of the thieves grabbing jellycat collectible toys from the
- 7:04shelves and packing them into a bag before taking off. The store owner,
- 7:08The Gorge Bear Company estimates the total price of the 200 stolen toys
- 7:11to be £20,000. There were reports of of
- 7:15Jellycat thefts. With plush toys so valuable and in demand they had become
- 7:19a target for shoplifters. And 2023 was also a
- 7:22turning point for many independents. Some noticed that
- 7:26jellycat's agents began to speak differently about the brand. There was a shift,
- 7:29a move towards curating. Who represented the jellycat image?
- 7:36Hannah Davis, who owned at the time West Stanton, a
- 7:40design led kids store in Surrey, had been trying for years to become a
- 7:44Jellycat stockist. Despite multiple conversations with Jellycat in
- 7:472021 and 2022, she was turned down. But in
- 7:512023, everything changed. The lady
- 7:55that I'd spoken to numerous times and met with came
- 7:58into my store and introduced Jelly Cat to me
- 8:02as a brand. And I was like, this is so weird because I don't think
- 8:06she knows that. We've met twice and spoken on email quite a few times.
- 8:09So it's a bit like, this doesn't give me great vibes.
- 8:13Anyway, search your inbox before you turn up in someone's shop. But she
- 8:17was like, yeah, we would love you to stock jellycat. We're moving
- 8:21away from like the Garden center Waterstones
- 8:24vibe and we're really looking for like design led
- 8:28independent stores. She said, the owners, I don't know who the owners of
- 8:31jellycat are, but the owners really want it to be like a
- 8:35trend design LED brand. You don't want it to be like
- 8:39what granny buys the new baby anymore. We want it to be really cool. And
- 8:42I was like, oh yeah, cool. Also thinking like,
- 8:46I've replaced you because you said no to me for three years even
- 8:50though I told you I was the design led store. I told you that I
- 8:53wasn't like the other ones and you ignored me and in some scenarios were
- 8:57a bit rude. So I was just like, oh, thank you. But actually, you know,
- 9:01we've got other brands that are
- 9:05cooler now, so I never ordered with them. But
- 9:09yeah, it was an extreme pivot from the years of no, no, no to
- 9:12Let me introduce you to jellycat. We would love you to work with us. And
- 9:15did you get the sense that she'd come to the store because she'd maybe seen
- 9:18your social media or she'd seen the store and she felt like it fit the
- 9:21profile? Was she concerned about the way the store looked, for example?
- 9:24Definitely, she said, because she had said. And actually with Leeward, when
- 9:28I first stocked them, somebody came to to see how like the
- 9:31aesthetics of the store were before they would approve me as a retailer. I'm
- 9:35guessing jellycat kind of adopted that. But yeah, she had come in
- 9:39to see the vibe, but I just thought it was very strange.
- 9:42I don't know how she found me because I think in our previous
- 9:46communications I'd shown her my Instagram to be like, look, I've got a decent following.
- 9:50Like you can see the kind of brands I hold, how the aesthetics of
- 9:54the shop are. But no, she fully came in as if
- 9:58she had never heard of me. We'd Never spoken. So she said they were actively
- 10:02looking to move away from some retailers. Yes.
- 10:05She basically said the more old school it was definitely
- 10:09garden centres. They didn't like jellycat being associated with garden centers
- 10:12was the general gist that I got. And Waterstones, they were just
- 10:16like as if it was a bit beneath them now where it is
- 10:20kind of their bread and butter as well. Like I've worked with and
- 10:24stocked so many brands over the years that they know who
- 10:28their audience they want are but they're also. You
- 10:31can't neglect the people who are actually buying from you. And Jenny Cat must
- 10:35make a fortune out of the garden centers because you do have the
- 10:39grannies going in and treating them and having a kids store granny is
- 10:43spend a lot. Yeah. So it's like I get that you want to be trendy
- 10:47and design led but you do make pink fluffy bunnies.
- 11:00It was clear that jellycat's idea of who they were and who their retail base
- 11:03should be was changing. The indie crisis really began in January
- 11:072025 when Jellycat made a major operational change.
- 11:11They replaced their independent agents with an in house sales team.
- 11:15From that moment on, according to both existing and former
- 11:18stockists, ordering became much more difficult. It was email based.
- 11:22There were no more phone calls or personal conversations with agents who really
- 11:26knew the shops. And many at that point had not actually had anybody from
- 11:29jellycat in their shop for quite some time. Then came the
- 11:33letters. Stockists were suddenly divided into three
- 11:36categories. The ones who were confirmed as official stockists going
- 11:40forward. The ones who were told they had the potential to improve
- 11:44with no real clarity on what that meant. And around 100
- 11:47stockists, or roughly 8% of their network, were cut
- 11:51entirely. Retailers were blindsided. There was no
- 11:54explanation of how these decisions were made. And according to a current stockist I
- 11:58spoke to, jellycat has never shared their criteria. Even for
- 12:02those who weren't cut, the tone of communication felt unsettling.
- 12:05One current stockist who was told they could continue but would need to improve
- 12:09their jellycat experience to keep their status quo next year, described
- 12:13it as feeling like a veiled threat. Instead of a sense of partnership, there was
- 12:17a sense of being judged without clear standards or guidance.
- 12:20Georgie Stewart from Stewart's of Bakewell in the Peak District was one of
- 12:24the stockists to receive their letter withdrawing their status as an official
- 12:28jellycat stockist. It came completely out of the
- 12:32blue, although we had an inkling in the fact that it was
- 12:35becoming increasingly difficult to keep supplying in the
- 12:39store and they'd made it Very awkward placing orders
- 12:43as well. But until the letter came, we didn't know any more
- 12:46prior to that. And that was the 17th of June,
- 12:50I see. And you hadn't had any direct communication
- 12:54from your jellycat rep? It was just direct from the company.
- 12:58Prior to January, we'd had an agent
- 13:02and they were let go and they jellycat employed
- 13:05reps, so we had a rep for the first time from January.
- 13:10We only seen him once in store and
- 13:13everything pretty much was done on email or
- 13:17telephone. But it just made it very difficult
- 13:21placing orders. They sent out an order form on a
- 13:24Monday that you had do online, but it was
- 13:28obscure things and then there was no guarantee that what you
- 13:32ordered is, you know, you even could get it. And so
- 13:36from having had stock in store for 20 years,
- 13:40there was weeks where we have nothing or very, very little stock.
- 13:43Yeah. So you'd been a Jelly cat stockist for 20 years, and when would you
- 13:47say the stock problems really began? January, a little
- 13:50bit before Christmas. It was becoming increasingly difficult,
- 13:54but certainly the biggest problems came from January
- 13:58onwards. How has it impacted you both emotionally,
- 14:02to get informed in this way, but also from a business perspective?
- 14:06Well, from a business perspective, it's been very difficult because
- 14:11we've always believed, my husband and I were in partnership together
- 14:14at the store, that we shouldn't sell any one products. But
- 14:18jellycat has huge following
- 14:22locally and with collectors. It will impact us,
- 14:26obviously, and we're desperately looking around for new stockists.
- 14:29And it's interesting how many people want you to suddenly stock their product
- 14:33emotionally. It's been an absolute roller coaster. Just the
- 14:37fact that it came out of the blue. There was no consultation.
- 14:42The wording in the letter was awful. We've cried, there's no
- 14:45doubt about it, we've both cried. Just because you think you're doing
- 14:49your best and the way they've let us go.
- 15:00So what was behind this decision is it simply about stock?
- 15:04Stock certainly comes up again and again from the stockists who were cut
- 15:07to those who are still on the list. Massive demand and limited availability
- 15:12have become the defining challenge. I spoke with several current
- 15:15jellycat stockists who, for obvious reasons, weren't able to talk publicly.
- 15:19But when I asked one what their biggest wish was from jellycat, their answer was
- 15:23immediately stock. The frustrations that they shared were
- 15:26hard to ignore. There's no clear information about when stock will be available,
- 15:30no proper B2B ordering system, and if you don't respond to a stock
- 15:34email on the day it lands, you lose your chance to order back orders
- 15:38are being canceled without notice. And crucially, the core lines such
- 15:42as Bashful Bunnies, Bartholomew Bears that customers ask for
- 15:46every single day have been unavailable for months at a time. If
- 15:49you want to see real evidence of how the balance of power has really
- 15:53shifted towards jellycat, one stockist told me that they were offered a
- 15:57summer bundle. Now this summer bundle is something that I've heard about from a few
- 16:00stockists, but this person went into a bit more detail. They said
- 16:04with nothing else available, they felt they had no choice but to take this summer
- 16:07bundle. But the bundle had to be purchased sight unseen. They didn't know necessarily,
- 16:11necessarily what they were going to get. And surprise, surprise, when it arrived,
- 16:15it wasn't made up of their best selling lines. In fact, it was full of
- 16:18what seemed like obscure or slower selling items they knew that their
- 16:22customers wouldn't buy. And they felt that it was a tactic by
- 16:25jellycat to shift their own dead stock. As one
- 16:29retailer told me bluntly, when I asked them what it was like working with jellycat,
- 16:32they described them as. Tricky, arrogant, absent,
- 16:36inefficient. Jellycat have certainly lost their cute and.
- 16:40Fluffy appeal to deal with, and it's. This contrast between the
- 16:43adorable, smiling toys and the strained relationship with their
- 16:47stockist that has made this story so striking. So is
- 16:51this a move to protect strange stock levels and perhaps give
- 16:54priority to more premium channels? Of course, we can't know for
- 16:58sure without being a fly on the wall in jellycat's boardroom. Now I did
- 17:02reach out to jellycat and invite them to contribute to the this podcast, but
- 17:05perhaps unsurprisingly, I didn't get a response. To get some
- 17:09perspective, I turned to Therese Autumnblad, wholesale expert and founder of the
- 17:13Small Business Collective, to hear her take on what has happened.
- 17:19In my 17 years in the industry, I haven't really seen
- 17:23any brand or company reshuffle
- 17:26their stock is this way. There are many commercial reasons
- 17:30why jellycat has made this decision. I'm sure we can
- 17:34only speculate, but I think they made it very clear
- 17:37that for them it's about brand positioning and perception.
- 17:41Whether we agree with that or not, I believe that they
- 17:45want their end consumer to have the same experience. Whether they're
- 17:49shopping with an independent store or in one of their pop
- 17:52ups or on their website, they want more control
- 17:56of how their brand is perceived.
- 18:00It's well known that they have had some stock challenges over
- 18:03the last few years. With growing popularity
- 18:07and dealing with larger retailers that
- 18:11can buy bigger volumes and forecast more can really
- 18:14help to forecast better and ease that load.
- 18:18It will also mean less spend on resources because you need less
- 18:22people in sales and customer service and sales administration,
- 18:26less people packing orders, dealing with less small
- 18:30orders from independents which can be time consuming. It
- 18:34is less invoices, less bookkeeping, less
- 18:38shipment coordination and a lot of things
- 18:42just can become slightly easier I
- 18:45suppose. I also believe that they are
- 18:49moving more towards pay direct consumer
- 18:52model with focusing more on their pop ups,
- 18:56more on their big retailer partnerships,
- 19:01more on retailing through their own website,
- 19:04etc. Teresa's view that this is largely about cost cutting
- 19:08and control mirrors what we've seen under jellycat CEO Arnaud
- 19:11Meisel and his previous brand. Arnaud, who previously led Ren's
- 19:15Skincare, is known for strategies built around tight brand control, operational
- 19:19efficiency and premium positioning.
- 19:26Streamlining wholesale means fewer small accounts to manage, less admin
- 19:30and a stronger focus on larger retailers and direct to consumer
- 19:34sales. Now direct to consumer sales naturally deliver
- 19:38far higher margins, so they are often an area of focus,
- 19:41especially for a brand with such strong brand awareness.
- 19:45Automating systems and reducing personal interaction also helps
- 19:48keep costs down. And here's the thing, cost cutting and margin
- 19:52growth are not inherently bad moves. In fact, they're strategies I
- 19:56often advise fast growing companies to adopt. And they're scaling because
- 19:59they set the business up for long term success. So if this is what
- 20:03jellycat is doing, there's a measure of good business sense behind it. And some
- 20:07voices online even support jellycat's approach. They argue that the company
- 20:11is deliberately holding back expansion while carefully and
- 20:14slowly onboarding new factories to ensure capacity and
- 20:18quality. The logic is that if jellycat just wanted to cash in, they could
- 20:21have churned out lower quality versions years ago. But they haven't.
- 20:25In that sense, it could be a sign they're trying to protect the premium image
- 20:29of the brand and the quality of their products, even if the process
- 20:32is frustrating. However, speculation among retailers, and it's
- 20:36something I believe too, suggests that further cuts to independence are
- 20:40likely. The open letter sent to some stockists telling them that their
- 20:44Jellycat experience will be reviewed before confirming their
- 20:472026 status points strongly in that direction.
- 20:51That said, it is also important to note that not all current stockists have had
- 20:55a bad experience. One retailer told me my rep was
- 20:58very interested in how we present not just jellycat products, but our whole shop,
- 21:02our ethos, the way we dispatch online sales beautifully boxed with
- 21:06handwritten messages. She spent over two hours with me
- 21:09talking about how jellycat wants its stockists to align with their brand.
- 21:13Well I'm not here to defend a multi million pound company. I do hope
- 21:17I'm not the only one who's had a slightly better experience. This
- 21:21highlights the jellycat's approach, for better or worse, is about curation and
- 21:24alignment. They want their brand represented in a certain way
- 21:27and some shops see that as a positive challenge, while others naturally
- 21:31feel excluded, especially the way that the change was communicated.
- 21:35To get another perspective, I spoke with Hilary James, founder of
- 21:39Wardrobe at the Cross, a womenswear boutique in Cheshire. Hillary once
- 21:43tried to stock jellycat but never got through their door. As a
- 21:46retailer and a marketing consultant and fractional cmo, she can see
- 21:50both sides of the jellycat conundrum.
- 21:54I would say that there are some amazing retail environments where jellycat is
- 21:58sold beautifully. So for example, and I've seen various pieces
- 22:01around Insta in the last few days of beautiful retail environments,
- 22:05independent retail environments that could not be more exquisite
- 22:09and offer the flourish that I think Jelly Cat would want. And
- 22:13to me that seems crazy that they wouldn't want that individual
- 22:16interpretation of their brand. Some of these retailers have supported them for
- 22:2020, 25 years when they were nothing. That seems
- 22:24really sad, but also quite shaky from a commercial point
- 22:27of view from them, because those environments look beautiful to me.
- 22:31I can see that maybe there are certain environments that are perhaps not optimum,
- 22:35then they're not selling the story. But actually there are some beautiful
- 22:38independents selling that story incredibly well. And I think that can only be
- 22:42brand enhancing. That letter that was sent was emotionless,
- 22:46void of any humor or jellycat touches. It was just kind
- 22:50of a Dear John, there we go. So just playing it out as a brand
- 22:53marketeer, really poor. However, I can see their point.
- 22:57If they have got a real protection problem around
- 23:01this brand and they do believe it's perhaps not being sold in the
- 23:05best environments, they have a job to do for their shareholders, for the
- 23:09brand, to make sure that they continue to grow in the way they wish to,
- 23:12to protect that brand. And their brand is everything to them. You can see
- 23:16that from that collateral, their Insta, everything they put out there
- 23:19brand is absolutely central to them. I can see the reason.
- 23:24However, I think there is a bit of a conceit there because I do believe
- 23:28that, you know, they're sending out these things saying it's all about stock, we can't
- 23:32supply you. I actually think, yes, I'm sure there is a stock problem.
- 23:35I'm sure they can't supply everybody, but I do think
- 23:39that it's more about brand than it is about stock.
- 23:43Ultimately, this story is beginning to feel like a brand desperately trying
- 23:46to control and harness its viral success, all while juggling
- 23:50stock shortages and negative press around Jelly Cat thefts. But
- 23:54the biggest issue here isn't just what they've done, it's how they have
- 23:58communicated it.
- 24:06According to BBC's you and yours, Jellycat did issue a public
- 24:09apology in their statement to the BBC, but crucially there was
- 24:13no direct apology to the stockists themselves, the very businesses
- 24:17that helped build their success. Going back to
- 24:20Hilary James point, the real sting in all of this lies in the tone and
- 24:24delivery of the news. Stockists were hit with vague corporate
- 24:28sounding brand elevation emails with no real explanation of what that
- 24:31meant and often no actual visit from jellycat in a
- 24:35long time. For many, this lack of clarity caused confusion
- 24:39and genuine hurt. To dig into the communication side of the story,
- 24:43I spoke with Fiona Minute, PRX expert and founder of Boss yous pr
- 24:46to hear her thoughts on how jellycat handled their messaging.
- 24:51So from a PR on comms perspective I have to say I was
- 24:55absolutely startled actually by the way that
- 24:59this was actioned and handled by
- 25:02jellycat. I rated quite poorly. There was a real
- 25:06lack of transparency, there was no personal approach, there was
- 25:09zero empathy, there was dismissive tone and
- 25:13retailers partners were from all accounts left
- 25:17quite blindsided. Effective communications
- 25:20should provide clear, honest reasons for
- 25:24decisions such as these and jellycat didn't.
- 25:28There was sort of abrupt dismissive emails,
- 25:31correspondence with very little explanation. So
- 25:35we're sorry to let you know that we'll no longer be supplying jellycat products
- 25:39to ex stockist and the reason
- 25:43given was a brand elevation strategy. What does that mean?
- 25:46What does that mean to a trusted stockist? To a
- 25:50trusted partner? There was no personal sort of
- 25:54address to jellycat stockist. I mean it's laughably
- 25:58far from being personalised and respectful. A real lack
- 26:01of clarity also comes through in terms of both the wider reasoning
- 26:05and understanding the context for the changes, but also in the
- 26:09implications of this kind of overhaul and this move.
- 26:13Some stockists being told that they would no longer be supplied, you know, please do
- 26:16not place more orders as they. Will not be fulfilled. And Alice were told that
- 26:20their accounts would be unaffected, that supply would continue where
- 26:23available, but that they would not be an official jellycat stockist.
- 26:27And not only are jellycat dismissing previously
- 26:31trusted stockists and partners, they are creating
- 26:35a tiered system again amongst other
- 26:38trusted partners and stockists. You know, small businesses
- 26:42that have shown loyalty to the jellycat brand
- 26:46and the tone of the communication really
- 26:49suggested to partners stockists that they
- 26:53were no longer valuable to jellycat. And this kind of language
- 26:57really seriously damages trust. It
- 27:01erodes goodwill both amongst stockists partners,
- 27:05but also the wider retail community and
- 27:08consumers. And there seems to have been
- 27:12very little acknowledgement on the part of Delicap as to
- 27:16how the change would affect small businesses, both
- 27:20financially and emotionally. Fiona was not the only
- 27:23person to be shocked and taken aback by the tone of jellycats
- 27:27letters. After those letters went out, many stockists took to social
- 27:31media to voice their frustration and to share screenshots of what they've received.
- 27:35And the backlash has been severe. Jellycat's trustpilot page
- 27:39had to be turned off after it was flooded with negative reviews from angry customers
- 27:43and retailers. Social media is awash with critical posts, and even
- 27:46some of the large jellycat fan accounts, the ones that used to create so
- 27:50much free buzz for the brand, have started speaking out. One of the
- 27:54current stockies I spoke to told me about the conversations that she's had with customers.
- 27:57As one shopper put it, we'd rather buy our jellycats with you than in big
- 28:01stores like we always have. It's our tradition. And that's the problem.
- 28:04Jellycats move towards a tightly controlled premium retail model
- 28:08directly conflicts with the hunt mentality that made the brand so special.
- 28:12Customers loved the thrill of discovering a new jellycat in an unexpected
- 28:16independent shop, but that sense of adventure is disappearing.
- 28:20Instead, everything feels like it's being funneled into a narrow, high end vision of
- 28:23the brand. And that raises a simple question. Why couldn't jellycat have
- 28:27created a range for smaller shops and another for high end retailers?
- 28:31There was a way to balance brand elevation with loyalty to the independents who
- 28:34helped them grow. But that opportunity seems to have been missed. For
- 28:38example, the core products like the Bashful Bunny and Bartholomew Bear could be kept always
- 28:41in stock and available to service the lucrative gifting market for
- 28:45the more limited range in premium retail destinations for the collectors,
- 28:49Surely that could have been a compromise to keep everyone happy. All of this
- 28:53makes me wonder, is Jelly Cat at risk of becoming just
- 28:56another fad now? I had seen this pattern before.
- 29:00Back in the late 90s I spent a summer working in a shop in the
- 29:04US and one of my jobs was restocking the Ty Beanie
- 29:08Babies. I remember having crowds of people waiting for for us
- 29:11to put them out on the shelves and the hands pushing me out of the
- 29:15way and grabbing them out of the box as soon as I put it down.
- 29:18So we've had waves of these toy crazes before from Beanie
- 29:22Babies to Beanie Boos, Squishmallows, and now
- 29:25labubu. The thing about these crazes is that they can
- 29:29explode overnight and burn out just as quickly. Jelly
- 29:32Cat has tapped into that same collectible energy. The limited editions,
- 29:36the resale market, the viral moments on TikTok. But if they push
- 29:40too far, they risk alienating the very community that made them a
- 29:44household name. And there's already evidence of cracks, the
- 29:47trust pilot backlash, the social media negativity and the sense among
- 29:51retailers and fans that something has changed with even
- 29:55some of the biggest jellycat fan accounts speaking out or pulling back from
- 29:59promoting the brand. And I keep thinking, what happens next?
- 30:02Will jellycat continue down this path of high end potential positioning and centralized
- 30:06control? Or will they find a way to bring back some of the charm, the
- 30:10accessibility and the loyalty that the independents helped build?
- 30:14Because as history has shown us, with these types of toy crazes,
- 30:18loyalty and community are the things that last, not just hype.
- 30:22And what we don't know is whether or not this negative publicity will in
- 30:25itself be the downfall of jellycat. Fiona Minute feels that the risk
- 30:29to sales is real, but only time will tell. And in the context
- 30:33of jellycat, a brand that relies on emotional
- 30:36connection and brand loyalty, an erosion of trust and goodwill
- 30:41can occur when mistreatment has maybe been
- 30:44displayed in the supply chain or within business dealings.
- 30:48Because many consumers, and a sort of growing number of
- 30:52consumers might prefer to support small independent
- 30:55businesses, especially if this is where they have been purchasing jellycats
- 31:00up until now. And if they see those businesses being
- 31:03poorly treated, then some might choose to stop buying
- 31:07a certain brand altogether, look for alternatives
- 31:11by means of continuing to support the independent
- 31:15businesses. And this could lead to a dip in sales
- 31:18amongst core customer groups that may be value
- 31:22affecting ethical and more community conscious
- 31:26brands. We've also got to keep in mind that
- 31:29public sentiment is even louder these days thanks to the
- 31:33amplification that comes with social media and any
- 31:36negative swell of opinion. Fact, whatever it might be,
- 31:40can be quick to spread. Conversely, as
- 31:44purchasers in that kind of fast paced
- 31:47retail world, we can be fickle, we can be
- 31:51quick to forget. Jellycat's story is a reminder of how
- 31:54complex success can be. A brand that started with something as simple as
- 31:58a soft toy has become a global phenomenon. But with that journey has
- 32:02come friction, stock shortages and tough decisions about who gets to
- 32:06stay on the journey. For retailers, there's a clear
- 32:09lesson here. Don't put all your eggs in one basket. It is worth
- 32:13pointing out that according to its current stockists, jellycat themselves
- 32:17do not feel comfortable with people taking too large of a percentage of sales
- 32:21from jellycat. It's something that they actively really do encourage
- 32:24their stockists not to do. And as Therese Ortonblad
- 32:28suggests, protect yourself by having strong alternatives in each
- 32:32degree in your shop. No single supplier should hold that much
- 32:36power over your business. The best thing an independent retailer
- 32:39can do to protect themselves is to have a
- 32:43diverse supplier base to avoid becoming
- 32:47overly reliant on one or two key brands to
- 32:50drive footfall and sales.
- 32:54I having a mix of best sellers from different types of
- 32:58brands, I think that it is always if a
- 33:01category is doing really well, having a second
- 33:05option within that category I think is a
- 33:09good strategy. So that if something
- 33:12were to happen, if that best selling brand has
- 33:16any supply issues, they decide to go in a different
- 33:20direction or anything like that, you have
- 33:23something up and coming coming up behind that.
- 33:32For brands, the takeaway is just as important. Love your
- 33:36stockists. They are your storytellers. They're the ones who bring
- 33:39your products to life in front of customers, build loyalty and create
- 33:43those little moments of magic. Without them, the story loses some of
- 33:47its soul. And if you do have to make difficult decisions, be
- 33:50kind, be human and communicate in a way that is
- 33:53respectful. This episode isn't just about jellycat, it's about
- 33:57the wider relationship between brands and the independent shops that champion
- 34:01them. There's so much that could have been done differently, with more care,
- 34:05more communication and more respect. If this episode
- 34:09resonated with you, I'd love for you to share it with a friend, a fellow
- 34:12retailer, parent, or someone who loves the independent shop experience.
- 34:16Because behind many best selling products, there's a network of
- 34:20independent retailers who believed in it first and they deserve
- 34:23to be part of the story. Thank you so much for listening. Listening. Do take
- 34:27a moment to follow the podcast or
- 34:30subscribe whatever platform that you're on and if you have a minute to rate and
- 34:34review it Inside Apple Podcast, that makes all the difference. See you next week.