Speaker:

From viral plush toys to furious stockists, jellycat's story

Speaker:

isn't all cute and fluffy. Today we're exploring what's really going

Speaker:

on behind the British success story that has been hitting the headlines for all

Speaker:

the wrong reasons. I just thought it was very strange because I think in our

Speaker:

previous communications I'd shown her my Instagram to be look, I've got a decent

Speaker:

following. They'd made it very awkward placing orders

Speaker:

as well, but until the letter came we didn't know any more. You

Speaker:

know, prior to that. With them it's about brand positioning and

Speaker:

perception, whether we agree with that or not.

Speaker:

Welcome to the Resilient Retail Game Plan. I'm Catherine Edley and in the

Speaker:

next few minutes you're about to get powerful real world retail strategies

Speaker:

from insights shared both from my guests and myself, backed up

Speaker:

by my 25 years in the retail industry. Keep listening to

Speaker:

learn how to grow a thriving, profitable product business. Let's

Speaker:

jump in with this latest episode.

Speaker:

What fascinates me about this story is that it's not only a thought provoking

Speaker:

and cautionary tale about what happens when a brand takes off, but it's

Speaker:

a story about a brand I've long been aware of as both a retail expert

Speaker:

and a parent. So when I started to see the backlash on social

Speaker:

media from shops who had been dropped by jellycat, I knew I wanted to put

Speaker:

together a podcast episode to really dive into the details.

Speaker:

It all started for me when my daughter was a baby and someone gave her

Speaker:

a bashful bunny, one of those classic Jelly Cat to that's instantly

Speaker:

lovable. A few years later, JellyCat launched the

Speaker:

amusables range, inanimate objects with smiling faces and dangly

Speaker:

legs. That was the year we bought her the smiling watermelon for her

Speaker:

eighth birthday and it quickly became one of her favorite toys.

Speaker:

Jelly Cats were such a regular feature of her Christmas and birthday list that when

Speaker:

she turned 14, we threw a Jelly Cat themed birthday party.

Speaker:

I spent hours decorating food with tiny smiling faces just like

Speaker:

the amusables. And she loved it. The centerpiece was a cake made

Speaker:

to look just like the Jelly Cat birthday cake plush. Last

Speaker:

year we even made the trip to Selfridges to visit the fish and chips Pop

Speaker:

up, which was ended up being one of my most popular reels on

Speaker:

Instagram. But this story isn't about me and my family. One day I

Speaker:

shared on Instagram that I was planning an episode about jellycat. I was

Speaker:

overwhelmed by the response. People told me how deeply they

Speaker:

care about this brand and some Retailers even admitted that Jelly Cat

Speaker:

has been at the heart of their business for the past 10 years.

Speaker:

What's making the story story so difficult is that Jelly Cat always felt like

Speaker:

one of those rare, special brands that got it right. They had

Speaker:

the design, the creativity, the magic, and they had the loyalty of

Speaker:

independent shops who loved selling their products. Now that

Speaker:

relationship feels fractured. It's a reminder of how quickly things can

Speaker:

shift, even for a brand that seems untouchable. You can have a

Speaker:

beautiful product, loyal stockists and years of goodwill and still find

Speaker:

yourself in the middle of controversy when things go wrong. So who

Speaker:

are the company behind jellycat? Well, as a A brief

Speaker:

history they were founded in 1999 by two brothers, Thomas and

Speaker:

William Gattaca. The founders are notoriously publicity shy

Speaker:

and there are very few interviews or even quotes available from them.

Speaker:

The company grew, but things really took off in 2018 with the launch of

Speaker:

the inanimate objects with cute smiley faces. The Amusables

Speaker:

the Amusables were a major hit, tying in with the Kidult trend

Speaker:

where adults spend money on items more usually associated

Speaker:

with children, such as soft toys. According to a

Speaker:

2024 Guardian in Article, the brothers first hit the Sunday Times

Speaker:

rich list in 2018 when the business was valued at

Speaker:

155 million. By 2022,

Speaker:

revenue was reported to have jumped 72% on the previous

Speaker:

year to 146 million, then grew another

Speaker:

37% to 200 million in 2023

Speaker:

with a whopping 67 million pounds of pre tax

Speaker:

profit. So the company was growing fast

Speaker:

and in 2022, for the first time, the brothers

Speaker:

stepped back from the leadership of Jellycat. They brought in

Speaker:

Arno Mesal, who joined Jellycat in

Speaker:

2022 as CEO. It appears

Speaker:

that the business was growing rapidly and they decided to bring someone in with

Speaker:

previous experience in a global company. For

Speaker:

example, Arnault's previous company Ren Skincare, was quoted as

Speaker:

having a 1.2 billion pounds turnover in

Speaker:

2023. Interestingly, in light of what has happened recently

Speaker:

at Jellycat, Moselle, who was CEO at Rennes from

Speaker:

2017 before leaving for Jellycat in early 22,

Speaker:

presided over a move to refocus and reposition Ren

Speaker:

not only as a more sustainable brand, but also away from mass

Speaker:

market retailers and towards premium beauty. This is worth

Speaker:

bearing in mind as we continue through our story.

Speaker:

So jellycat has become in recent years, years more than just a toy brand.

Speaker:

It's a cultural phenomenon. On TikTok and Instagram,

Speaker:

dedicated fan accounts post daily about their collections, racking

Speaker:

up millions of views and Jelly Cat hunts, where collectors scour

Speaker:

shops for rare or retired designs have become a trend in their own

Speaker:

right. One of the biggest drivers of this viral moment has

Speaker:

been the Jelly Cat Pop Ups. These aren't just a place to buy a plush

Speaker:

toy, they're full blown experiences. They started in

Speaker:

late 2023 in New York where Jellycat partnered with

Speaker:

FAO Schwartz to launch the Jellycat diner where customers could

Speaker:

order a plush burger or milkshake and watch staff form a

Speaker:

playful cooking routine before serving the toy on a tray. It

Speaker:

became a social media sensation with reservations selling out and

Speaker:

tiktoks of the experience going viral. Then came the Paris

Speaker:

Patisserie Pop up in Galerie Lafayette Aussmann, a luxurious

Speaker:

French inspired setup where plush pastries were wrapped like high end

Speaker:

treats. The setting alone inside one of Paris's most

Speaker:

premium department stores was a statement. The Jelly Cat was positioning

Speaker:

itself as a lifestyle and design brand, not just a children's toy company.

Speaker:

And by the summer of 2024 London got its own version with the

Speaker:

fish and chips Pop up at Selfridges. The queues went around the block and my

Speaker:

own reel from that event became one of my most viewed posts of the year.

Speaker:

It was clever. Jellycat tapped into British nostalgia while

Speaker:

pairing it with One of the UK's most prestigious retailers, reinforcing the brand

Speaker:

as quirky, aspirational and fun. And let me tell you,

Speaker:

it was mostly adults at the Selfridges Pop up and they were

Speaker:

spending hundreds of pounds on these limited edition

Speaker:

items. These pop ups, they weren't just marketing stunts. They

Speaker:

signaled jellycat's ambition to move up market and cement its reputation

Speaker:

as a brand with premium design led credentials.

Speaker:

But alongside the success stories, a darker side started to

Speaker:

emerge. Police are hunting masked thieves who broke into an endless shop

Speaker:

by ramming the door with a car and a wooden plank. CCTV

Speaker:

footage shows one of the thieves grabbing jellycat collectible toys from the

Speaker:

shelves and packing them into a bag before taking off. The store owner,

Speaker:

The Gorge Bear Company estimates the total price of the 200 stolen toys

Speaker:

to be £20,000. There were reports of of

Speaker:

Jellycat thefts. With plush toys so valuable and in demand they had become

Speaker:

a target for shoplifters. And 2023 was also a

Speaker:

turning point for many independents. Some noticed that

Speaker:

jellycat's agents began to speak differently about the brand. There was a shift,

Speaker:

a move towards curating. Who represented the jellycat image?

Speaker:

Hannah Davis, who owned at the time West Stanton, a

Speaker:

design led kids store in Surrey, had been trying for years to become a

Speaker:

Jellycat stockist. Despite multiple conversations with Jellycat in

Speaker:

2021 and 2022, she was turned down. But in

Speaker:

2023, everything changed. The lady

Speaker:

that I'd spoken to numerous times and met with came

Speaker:

into my store and introduced Jelly Cat to me

Speaker:

as a brand. And I was like, this is so weird because I don't think

Speaker:

she knows that. We've met twice and spoken on email quite a few times.

Speaker:

So it's a bit like, this doesn't give me great vibes.

Speaker:

Anyway, search your inbox before you turn up in someone's shop. But she

Speaker:

was like, yeah, we would love you to stock jellycat. We're moving

Speaker:

away from like the Garden center Waterstones

Speaker:

vibe and we're really looking for like design led

Speaker:

independent stores. She said, the owners, I don't know who the owners of

Speaker:

jellycat are, but the owners really want it to be like a

Speaker:

trend design LED brand. You don't want it to be like

Speaker:

what granny buys the new baby anymore. We want it to be really cool. And

Speaker:

I was like, oh yeah, cool. Also thinking like,

Speaker:

I've replaced you because you said no to me for three years even

Speaker:

though I told you I was the design led store. I told you that I

Speaker:

wasn't like the other ones and you ignored me and in some scenarios were

Speaker:

a bit rude. So I was just like, oh, thank you. But actually, you know,

Speaker:

we've got other brands that are

Speaker:

cooler now, so I never ordered with them. But

Speaker:

yeah, it was an extreme pivot from the years of no, no, no to

Speaker:

Let me introduce you to jellycat. We would love you to work with us. And

Speaker:

did you get the sense that she'd come to the store because she'd maybe seen

Speaker:

your social media or she'd seen the store and she felt like it fit the

Speaker:

profile? Was she concerned about the way the store looked, for example?

Speaker:

Definitely, she said, because she had said. And actually with Leeward, when

Speaker:

I first stocked them, somebody came to to see how like the

Speaker:

aesthetics of the store were before they would approve me as a retailer. I'm

Speaker:

guessing jellycat kind of adopted that. But yeah, she had come in

Speaker:

to see the vibe, but I just thought it was very strange.

Speaker:

I don't know how she found me because I think in our previous

Speaker:

communications I'd shown her my Instagram to be like, look, I've got a decent following.

Speaker:

Like you can see the kind of brands I hold, how the aesthetics of

Speaker:

the shop are. But no, she fully came in as if

Speaker:

she had never heard of me. We'd Never spoken. So she said they were actively

Speaker:

looking to move away from some retailers. Yes.

Speaker:

She basically said the more old school it was definitely

Speaker:

garden centres. They didn't like jellycat being associated with garden centers

Speaker:

was the general gist that I got. And Waterstones, they were just

Speaker:

like as if it was a bit beneath them now where it is

Speaker:

kind of their bread and butter as well. Like I've worked with and

Speaker:

stocked so many brands over the years that they know who

Speaker:

their audience they want are but they're also. You

Speaker:

can't neglect the people who are actually buying from you. And Jenny Cat must

Speaker:

make a fortune out of the garden centers because you do have the

Speaker:

grannies going in and treating them and having a kids store granny is

Speaker:

spend a lot. Yeah. So it's like I get that you want to be trendy

Speaker:

and design led but you do make pink fluffy bunnies.

Speaker:

It was clear that jellycat's idea of who they were and who their retail base

Speaker:

should be was changing. The indie crisis really began in January

Speaker:

2025 when Jellycat made a major operational change.

Speaker:

They replaced their independent agents with an in house sales team.

Speaker:

From that moment on, according to both existing and former

Speaker:

stockists, ordering became much more difficult. It was email based.

Speaker:

There were no more phone calls or personal conversations with agents who really

Speaker:

knew the shops. And many at that point had not actually had anybody from

Speaker:

jellycat in their shop for quite some time. Then came the

Speaker:

letters. Stockists were suddenly divided into three

Speaker:

categories. The ones who were confirmed as official stockists going

Speaker:

forward. The ones who were told they had the potential to improve

Speaker:

with no real clarity on what that meant. And around 100

Speaker:

stockists, or roughly 8% of their network, were cut

Speaker:

entirely. Retailers were blindsided. There was no

Speaker:

explanation of how these decisions were made. And according to a current stockist I

Speaker:

spoke to, jellycat has never shared their criteria. Even for

Speaker:

those who weren't cut, the tone of communication felt unsettling.

Speaker:

One current stockist who was told they could continue but would need to improve

Speaker:

their jellycat experience to keep their status quo next year, described

Speaker:

it as feeling like a veiled threat. Instead of a sense of partnership, there was

Speaker:

a sense of being judged without clear standards or guidance.

Speaker:

Georgie Stewart from Stewart's of Bakewell in the Peak District was one of

Speaker:

the stockists to receive their letter withdrawing their status as an official

Speaker:

jellycat stockist. It came completely out of the

Speaker:

blue, although we had an inkling in the fact that it was

Speaker:

becoming increasingly difficult to keep supplying in the

Speaker:

store and they'd made it Very awkward placing orders

Speaker:

as well. But until the letter came, we didn't know any more

Speaker:

prior to that. And that was the 17th of June,

Speaker:

I see. And you hadn't had any direct communication

Speaker:

from your jellycat rep? It was just direct from the company.

Speaker:

Prior to January, we'd had an agent

Speaker:

and they were let go and they jellycat employed

Speaker:

reps, so we had a rep for the first time from January.

Speaker:

We only seen him once in store and

Speaker:

everything pretty much was done on email or

Speaker:

telephone. But it just made it very difficult

Speaker:

placing orders. They sent out an order form on a

Speaker:

Monday that you had do online, but it was

Speaker:

obscure things and then there was no guarantee that what you

Speaker:

ordered is, you know, you even could get it. And so

Speaker:

from having had stock in store for 20 years,

Speaker:

there was weeks where we have nothing or very, very little stock.

Speaker:

Yeah. So you'd been a Jelly cat stockist for 20 years, and when would you

Speaker:

say the stock problems really began? January, a little

Speaker:

bit before Christmas. It was becoming increasingly difficult,

Speaker:

but certainly the biggest problems came from January

Speaker:

onwards. How has it impacted you both emotionally,

Speaker:

to get informed in this way, but also from a business perspective?

Speaker:

Well, from a business perspective, it's been very difficult because

Speaker:

we've always believed, my husband and I were in partnership together

Speaker:

at the store, that we shouldn't sell any one products. But

Speaker:

jellycat has huge following

Speaker:

locally and with collectors. It will impact us,

Speaker:

obviously, and we're desperately looking around for new stockists.

Speaker:

And it's interesting how many people want you to suddenly stock their product

Speaker:

emotionally. It's been an absolute roller coaster. Just the

Speaker:

fact that it came out of the blue. There was no consultation.

Speaker:

The wording in the letter was awful. We've cried, there's no

Speaker:

doubt about it, we've both cried. Just because you think you're doing

Speaker:

your best and the way they've let us go.

Speaker:

So what was behind this decision is it simply about stock?

Speaker:

Stock certainly comes up again and again from the stockists who were cut

Speaker:

to those who are still on the list. Massive demand and limited availability

Speaker:

have become the defining challenge. I spoke with several current

Speaker:

jellycat stockists who, for obvious reasons, weren't able to talk publicly.

Speaker:

But when I asked one what their biggest wish was from jellycat, their answer was

Speaker:

immediately stock. The frustrations that they shared were

Speaker:

hard to ignore. There's no clear information about when stock will be available,

Speaker:

no proper B2B ordering system, and if you don't respond to a stock

Speaker:

email on the day it lands, you lose your chance to order back orders

Speaker:

are being canceled without notice. And crucially, the core lines such

Speaker:

as Bashful Bunnies, Bartholomew Bears that customers ask for

Speaker:

every single day have been unavailable for months at a time. If

Speaker:

you want to see real evidence of how the balance of power has really

Speaker:

shifted towards jellycat, one stockist told me that they were offered a

Speaker:

summer bundle. Now this summer bundle is something that I've heard about from a few

Speaker:

stockists, but this person went into a bit more detail. They said

Speaker:

with nothing else available, they felt they had no choice but to take this summer

Speaker:

bundle. But the bundle had to be purchased sight unseen. They didn't know necessarily,

Speaker:

necessarily what they were going to get. And surprise, surprise, when it arrived,

Speaker:

it wasn't made up of their best selling lines. In fact, it was full of

Speaker:

what seemed like obscure or slower selling items they knew that their

Speaker:

customers wouldn't buy. And they felt that it was a tactic by

Speaker:

jellycat to shift their own dead stock. As one

Speaker:

retailer told me bluntly, when I asked them what it was like working with jellycat,

Speaker:

they described them as. Tricky, arrogant, absent,

Speaker:

inefficient. Jellycat have certainly lost their cute and.

Speaker:

Fluffy appeal to deal with, and it's. This contrast between the

Speaker:

adorable, smiling toys and the strained relationship with their

Speaker:

stockist that has made this story so striking. So is

Speaker:

this a move to protect strange stock levels and perhaps give

Speaker:

priority to more premium channels? Of course, we can't know for

Speaker:

sure without being a fly on the wall in jellycat's boardroom. Now I did

Speaker:

reach out to jellycat and invite them to contribute to the this podcast, but

Speaker:

perhaps unsurprisingly, I didn't get a response. To get some

Speaker:

perspective, I turned to Therese Autumnblad, wholesale expert and founder of the

Speaker:

Small Business Collective, to hear her take on what has happened.

Speaker:

In my 17 years in the industry, I haven't really seen

Speaker:

any brand or company reshuffle

Speaker:

their stock is this way. There are many commercial reasons

Speaker:

why jellycat has made this decision. I'm sure we can

Speaker:

only speculate, but I think they made it very clear

Speaker:

that for them it's about brand positioning and perception.

Speaker:

Whether we agree with that or not, I believe that they

Speaker:

want their end consumer to have the same experience. Whether they're

Speaker:

shopping with an independent store or in one of their pop

Speaker:

ups or on their website, they want more control

Speaker:

of how their brand is perceived.

Speaker:

It's well known that they have had some stock challenges over

Speaker:

the last few years. With growing popularity

Speaker:

and dealing with larger retailers that

Speaker:

can buy bigger volumes and forecast more can really

Speaker:

help to forecast better and ease that load.

Speaker:

It will also mean less spend on resources because you need less

Speaker:

people in sales and customer service and sales administration,

Speaker:

less people packing orders, dealing with less small

Speaker:

orders from independents which can be time consuming. It

Speaker:

is less invoices, less bookkeeping, less

Speaker:

shipment coordination and a lot of things

Speaker:

just can become slightly easier I

Speaker:

suppose. I also believe that they are

Speaker:

moving more towards pay direct consumer

Speaker:

model with focusing more on their pop ups,

Speaker:

more on their big retailer partnerships,

Speaker:

more on retailing through their own website,

Speaker:

etc. Teresa's view that this is largely about cost cutting

Speaker:

and control mirrors what we've seen under jellycat CEO Arnaud

Speaker:

Meisel and his previous brand. Arnaud, who previously led Ren's

Speaker:

Skincare, is known for strategies built around tight brand control, operational

Speaker:

efficiency and premium positioning.

Speaker:

Streamlining wholesale means fewer small accounts to manage, less admin

Speaker:

and a stronger focus on larger retailers and direct to consumer

Speaker:

sales. Now direct to consumer sales naturally deliver

Speaker:

far higher margins, so they are often an area of focus,

Speaker:

especially for a brand with such strong brand awareness.

Speaker:

Automating systems and reducing personal interaction also helps

Speaker:

keep costs down. And here's the thing, cost cutting and margin

Speaker:

growth are not inherently bad moves. In fact, they're strategies I

Speaker:

often advise fast growing companies to adopt. And they're scaling because

Speaker:

they set the business up for long term success. So if this is what

Speaker:

jellycat is doing, there's a measure of good business sense behind it. And some

Speaker:

voices online even support jellycat's approach. They argue that the company

Speaker:

is deliberately holding back expansion while carefully and

Speaker:

slowly onboarding new factories to ensure capacity and

Speaker:

quality. The logic is that if jellycat just wanted to cash in, they could

Speaker:

have churned out lower quality versions years ago. But they haven't.

Speaker:

In that sense, it could be a sign they're trying to protect the premium image

Speaker:

of the brand and the quality of their products, even if the process

Speaker:

is frustrating. However, speculation among retailers, and it's

Speaker:

something I believe too, suggests that further cuts to independence are

Speaker:

likely. The open letter sent to some stockists telling them that their

Speaker:

Jellycat experience will be reviewed before confirming their

Speaker:

2026 status points strongly in that direction.

Speaker:

That said, it is also important to note that not all current stockists have had

Speaker:

a bad experience. One retailer told me my rep was

Speaker:

very interested in how we present not just jellycat products, but our whole shop,

Speaker:

our ethos, the way we dispatch online sales beautifully boxed with

Speaker:

handwritten messages. She spent over two hours with me

Speaker:

talking about how jellycat wants its stockists to align with their brand.

Speaker:

Well I'm not here to defend a multi million pound company. I do hope

Speaker:

I'm not the only one who's had a slightly better experience. This

Speaker:

highlights the jellycat's approach, for better or worse, is about curation and

Speaker:

alignment. They want their brand represented in a certain way

Speaker:

and some shops see that as a positive challenge, while others naturally

Speaker:

feel excluded, especially the way that the change was communicated.

Speaker:

To get another perspective, I spoke with Hilary James, founder of

Speaker:

Wardrobe at the Cross, a womenswear boutique in Cheshire. Hillary once

Speaker:

tried to stock jellycat but never got through their door. As a

Speaker:

retailer and a marketing consultant and fractional cmo, she can see

Speaker:

both sides of the jellycat conundrum.

Speaker:

I would say that there are some amazing retail environments where jellycat is

Speaker:

sold beautifully. So for example, and I've seen various pieces

Speaker:

around Insta in the last few days of beautiful retail environments,

Speaker:

independent retail environments that could not be more exquisite

Speaker:

and offer the flourish that I think Jelly Cat would want. And

Speaker:

to me that seems crazy that they wouldn't want that individual

Speaker:

interpretation of their brand. Some of these retailers have supported them for

Speaker:

20, 25 years when they were nothing. That seems

Speaker:

really sad, but also quite shaky from a commercial point

Speaker:

of view from them, because those environments look beautiful to me.

Speaker:

I can see that maybe there are certain environments that are perhaps not optimum,

Speaker:

then they're not selling the story. But actually there are some beautiful

Speaker:

independents selling that story incredibly well. And I think that can only be

Speaker:

brand enhancing. That letter that was sent was emotionless,

Speaker:

void of any humor or jellycat touches. It was just kind

Speaker:

of a Dear John, there we go. So just playing it out as a brand

Speaker:

marketeer, really poor. However, I can see their point.

Speaker:

If they have got a real protection problem around

Speaker:

this brand and they do believe it's perhaps not being sold in the

Speaker:

best environments, they have a job to do for their shareholders, for the

Speaker:

brand, to make sure that they continue to grow in the way they wish to,

Speaker:

to protect that brand. And their brand is everything to them. You can see

Speaker:

that from that collateral, their Insta, everything they put out there

Speaker:

brand is absolutely central to them. I can see the reason.

Speaker:

However, I think there is a bit of a conceit there because I do believe

Speaker:

that, you know, they're sending out these things saying it's all about stock, we can't

Speaker:

supply you. I actually think, yes, I'm sure there is a stock problem.

Speaker:

I'm sure they can't supply everybody, but I do think

Speaker:

that it's more about brand than it is about stock.

Speaker:

Ultimately, this story is beginning to feel like a brand desperately trying

Speaker:

to control and harness its viral success, all while juggling

Speaker:

stock shortages and negative press around Jelly Cat thefts. But

Speaker:

the biggest issue here isn't just what they've done, it's how they have

Speaker:

communicated it.

Speaker:

According to BBC's you and yours, Jellycat did issue a public

Speaker:

apology in their statement to the BBC, but crucially there was

Speaker:

no direct apology to the stockists themselves, the very businesses

Speaker:

that helped build their success. Going back to

Speaker:

Hilary James point, the real sting in all of this lies in the tone and

Speaker:

delivery of the news. Stockists were hit with vague corporate

Speaker:

sounding brand elevation emails with no real explanation of what that

Speaker:

meant and often no actual visit from jellycat in a

Speaker:

long time. For many, this lack of clarity caused confusion

Speaker:

and genuine hurt. To dig into the communication side of the story,

Speaker:

I spoke with Fiona Minute, PRX expert and founder of Boss yous pr

Speaker:

to hear her thoughts on how jellycat handled their messaging.

Speaker:

So from a PR on comms perspective I have to say I was

Speaker:

absolutely startled actually by the way that

Speaker:

this was actioned and handled by

Speaker:

jellycat. I rated quite poorly. There was a real

Speaker:

lack of transparency, there was no personal approach, there was

Speaker:

zero empathy, there was dismissive tone and

Speaker:

retailers partners were from all accounts left

Speaker:

quite blindsided. Effective communications

Speaker:

should provide clear, honest reasons for

Speaker:

decisions such as these and jellycat didn't.

Speaker:

There was sort of abrupt dismissive emails,

Speaker:

correspondence with very little explanation. So

Speaker:

we're sorry to let you know that we'll no longer be supplying jellycat products

Speaker:

to ex stockist and the reason

Speaker:

given was a brand elevation strategy. What does that mean?

Speaker:

What does that mean to a trusted stockist? To a

Speaker:

trusted partner? There was no personal sort of

Speaker:

address to jellycat stockist. I mean it's laughably

Speaker:

far from being personalised and respectful. A real lack

Speaker:

of clarity also comes through in terms of both the wider reasoning

Speaker:

and understanding the context for the changes, but also in the

Speaker:

implications of this kind of overhaul and this move.

Speaker:

Some stockists being told that they would no longer be supplied, you know, please do

Speaker:

not place more orders as they. Will not be fulfilled. And Alice were told that

Speaker:

their accounts would be unaffected, that supply would continue where

Speaker:

available, but that they would not be an official jellycat stockist.

Speaker:

And not only are jellycat dismissing previously

Speaker:

trusted stockists and partners, they are creating

Speaker:

a tiered system again amongst other

Speaker:

trusted partners and stockists. You know, small businesses

Speaker:

that have shown loyalty to the jellycat brand

Speaker:

and the tone of the communication really

Speaker:

suggested to partners stockists that they

Speaker:

were no longer valuable to jellycat. And this kind of language

Speaker:

really seriously damages trust. It

Speaker:

erodes goodwill both amongst stockists partners,

Speaker:

but also the wider retail community and

Speaker:

consumers. And there seems to have been

Speaker:

very little acknowledgement on the part of Delicap as to

Speaker:

how the change would affect small businesses, both

Speaker:

financially and emotionally. Fiona was not the only

Speaker:

person to be shocked and taken aback by the tone of jellycats

Speaker:

letters. After those letters went out, many stockists took to social

Speaker:

media to voice their frustration and to share screenshots of what they've received.

Speaker:

And the backlash has been severe. Jellycat's trustpilot page

Speaker:

had to be turned off after it was flooded with negative reviews from angry customers

Speaker:

and retailers. Social media is awash with critical posts, and even

Speaker:

some of the large jellycat fan accounts, the ones that used to create so

Speaker:

much free buzz for the brand, have started speaking out. One of the

Speaker:

current stockies I spoke to told me about the conversations that she's had with customers.

Speaker:

As one shopper put it, we'd rather buy our jellycats with you than in big

Speaker:

stores like we always have. It's our tradition. And that's the problem.

Speaker:

Jellycats move towards a tightly controlled premium retail model

Speaker:

directly conflicts with the hunt mentality that made the brand so special.

Speaker:

Customers loved the thrill of discovering a new jellycat in an unexpected

Speaker:

independent shop, but that sense of adventure is disappearing.

Speaker:

Instead, everything feels like it's being funneled into a narrow, high end vision of

Speaker:

the brand. And that raises a simple question. Why couldn't jellycat have

Speaker:

created a range for smaller shops and another for high end retailers?

Speaker:

There was a way to balance brand elevation with loyalty to the independents who

Speaker:

helped them grow. But that opportunity seems to have been missed. For

Speaker:

example, the core products like the Bashful Bunny and Bartholomew Bear could be kept always

Speaker:

in stock and available to service the lucrative gifting market for

Speaker:

the more limited range in premium retail destinations for the collectors,

Speaker:

Surely that could have been a compromise to keep everyone happy. All of this

Speaker:

makes me wonder, is Jelly Cat at risk of becoming just

Speaker:

another fad now? I had seen this pattern before.

Speaker:

Back in the late 90s I spent a summer working in a shop in the

Speaker:

US and one of my jobs was restocking the Ty Beanie

Speaker:

Babies. I remember having crowds of people waiting for for us

Speaker:

to put them out on the shelves and the hands pushing me out of the

Speaker:

way and grabbing them out of the box as soon as I put it down.

Speaker:

So we've had waves of these toy crazes before from Beanie

Speaker:

Babies to Beanie Boos, Squishmallows, and now

Speaker:

labubu. The thing about these crazes is that they can

Speaker:

explode overnight and burn out just as quickly. Jelly

Speaker:

Cat has tapped into that same collectible energy. The limited editions,

Speaker:

the resale market, the viral moments on TikTok. But if they push

Speaker:

too far, they risk alienating the very community that made them a

Speaker:

household name. And there's already evidence of cracks, the

Speaker:

trust pilot backlash, the social media negativity and the sense among

Speaker:

retailers and fans that something has changed with even

Speaker:

some of the biggest jellycat fan accounts speaking out or pulling back from

Speaker:

promoting the brand. And I keep thinking, what happens next?

Speaker:

Will jellycat continue down this path of high end potential positioning and centralized

Speaker:

control? Or will they find a way to bring back some of the charm, the

Speaker:

accessibility and the loyalty that the independents helped build?

Speaker:

Because as history has shown us, with these types of toy crazes,

Speaker:

loyalty and community are the things that last, not just hype.

Speaker:

And what we don't know is whether or not this negative publicity will in

Speaker:

itself be the downfall of jellycat. Fiona Minute feels that the risk

Speaker:

to sales is real, but only time will tell. And in the context

Speaker:

of jellycat, a brand that relies on emotional

Speaker:

connection and brand loyalty, an erosion of trust and goodwill

Speaker:

can occur when mistreatment has maybe been

Speaker:

displayed in the supply chain or within business dealings.

Speaker:

Because many consumers, and a sort of growing number of

Speaker:

consumers might prefer to support small independent

Speaker:

businesses, especially if this is where they have been purchasing jellycats

Speaker:

up until now. And if they see those businesses being

Speaker:

poorly treated, then some might choose to stop buying

Speaker:

a certain brand altogether, look for alternatives

Speaker:

by means of continuing to support the independent

Speaker:

businesses. And this could lead to a dip in sales

Speaker:

amongst core customer groups that may be value

Speaker:

affecting ethical and more community conscious

Speaker:

brands. We've also got to keep in mind that

Speaker:

public sentiment is even louder these days thanks to the

Speaker:

amplification that comes with social media and any

Speaker:

negative swell of opinion. Fact, whatever it might be,

Speaker:

can be quick to spread. Conversely, as

Speaker:

purchasers in that kind of fast paced

Speaker:

retail world, we can be fickle, we can be

Speaker:

quick to forget. Jellycat's story is a reminder of how

Speaker:

complex success can be. A brand that started with something as simple as

Speaker:

a soft toy has become a global phenomenon. But with that journey has

Speaker:

come friction, stock shortages and tough decisions about who gets to

Speaker:

stay on the journey. For retailers, there's a clear

Speaker:

lesson here. Don't put all your eggs in one basket. It is worth

Speaker:

pointing out that according to its current stockists, jellycat themselves

Speaker:

do not feel comfortable with people taking too large of a percentage of sales

Speaker:

from jellycat. It's something that they actively really do encourage

Speaker:

their stockists not to do. And as Therese Ortonblad

Speaker:

suggests, protect yourself by having strong alternatives in each

Speaker:

degree in your shop. No single supplier should hold that much

Speaker:

power over your business. The best thing an independent retailer

Speaker:

can do to protect themselves is to have a

Speaker:

diverse supplier base to avoid becoming

Speaker:

overly reliant on one or two key brands to

Speaker:

drive footfall and sales.

Speaker:

I having a mix of best sellers from different types of

Speaker:

brands, I think that it is always if a

Speaker:

category is doing really well, having a second

Speaker:

option within that category I think is a

Speaker:

good strategy. So that if something

Speaker:

were to happen, if that best selling brand has

Speaker:

any supply issues, they decide to go in a different

Speaker:

direction or anything like that, you have

Speaker:

something up and coming coming up behind that.

Speaker:

For brands, the takeaway is just as important. Love your

Speaker:

stockists. They are your storytellers. They're the ones who bring

Speaker:

your products to life in front of customers, build loyalty and create

Speaker:

those little moments of magic. Without them, the story loses some of

Speaker:

its soul. And if you do have to make difficult decisions, be

Speaker:

kind, be human and communicate in a way that is

Speaker:

respectful. This episode isn't just about jellycat, it's about

Speaker:

the wider relationship between brands and the independent shops that champion

Speaker:

them. There's so much that could have been done differently, with more care,

Speaker:

more communication and more respect. If this episode

Speaker:

resonated with you, I'd love for you to share it with a friend, a fellow

Speaker:

retailer, parent, or someone who loves the independent shop experience.

Speaker:

Because behind many best selling products, there's a network of

Speaker:

independent retailers who believed in it first and they deserve

Speaker:

to be part of the story. Thank you so much for listening. Listening. Do take

Speaker:

a moment to follow the podcast or

Speaker:

subscribe whatever platform that you're on and if you have a minute to rate and

Speaker:

review it Inside Apple Podcast, that makes all the difference. See you next week.