July 31, 2025 • 35 mins
When your best-selling supplier pulls the rug out, what’s your next move?
I’m Catherine Erdly and this week’s Resilient Retail Game Plan episode dives straight into the Jellycat drama that’s rocking UK indie retail. Plush toys flying off the shelves one day, a curt rejection letter from your biggest brand partner the next. So how did Jellycat, the darling of TikTok and Instagram, go from indie retailers’ secret weapon to their biggest heartache? You’ll hear first-hand from shop owners blindsided by sudden cuts, dig into what this shock move reveals about scaling a product business, and learn hard-won lessons on loyalty, stock planning, and brand control. Plus my own take after 25 years in retail trenches.
Why listen?
- Discover how Jellycat’s decision upended cash flow for retailers—and what resilient retail really looks like in a storm
- Hear real talk on demand forecasting, inventory management, and pricing products for wholesale when the rules change overnight
- Unpack honest product business advice from guests who’ve been both championed and ghosted by hot brands
- Squeeze out independent retailer tips for strengthening supplier relationships—and never relying on one source again
- Reflect on indie shop survival and the community power that outlasts any viral craze
DM @resilientretailclub on Instagram with your biggest takeaway or who you’d love to hear next. If this episode hit home, rate and follow the Resilient Retail Club Podcast on your favourite app. Want even more? Read my latest Forbes article for funding options and fresh retail trend insights.
Not every plush is as soft as it looks. So let’s get into the real story.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
(00:00):
From viral plush toys to furious stockists, jellycat's story
isn't all cute and fluffy. Today we're exploring what's really going
on behind the British success story that has been hitting the headlines for all
the wrong reasons. I just thought it was very strange because I think in our
previous communications I'd shown her my Instagram to be look, I've got a decent
following. They'd made it very awkward placing orders
(00:22):
as well, but until the letter came we didn't know any more. You
know, prior to that. With them it's about brand positioning and
perception, whether we agree with that or not.
Welcome to the Resilient Retail Game Plan. I'm Catherine Edley and in the
next few minutes you're about to get powerful real world retail strategies
(00:42):
from insights shared both from my guests and myself, backed up
by my 25 years in the retail industry. Keep listening to
learn how to grow a thriving, profitable product business. Let's
jump in with this latest episode.
What fascinates me about this story is that it's not only a thought provoking
(01:03):
and cautionary tale about what happens when a brand takes off, but it's
a story about a brand I've long been aware of as both a retail expert
and a parent. So when I started to see the backlash on social
media from shops who had been dropped by jellycat, I knew I wanted to put
together a podcast episode to really dive into the details.
It all started for me when my daughter was a baby and someone gave her
(01:25):
a bashful bunny, one of those classic Jelly Cat to that's instantly
lovable. A few years later, JellyCat launched the
amusables range, inanimate objects with smiling faces and dangly
legs. That was the year we bought her the smiling watermelon for her
eighth birthday and it quickly became one of her favorite toys.
Jelly Cats were such a regular feature of her Christmas and birthday list that when
(01:46):
she turned 14, we threw a Jelly Cat themed birthday party.
I spent hours decorating food with tiny smiling faces just like
the amusables. And she loved it. The centerpiece was a cake made
to look just like the Jelly Cat birthday cake plush. Last
year we even made the trip to Selfridges to visit the fish and chips Pop
up, which was ended up being one of my most popular reels on
(02:08):
Instagram. But this story isn't about me and my family. One day I
shared on Instagram that I was planning an episode about jellycat. I was
overwhelmed by the response. People told me how deeply they
care about this brand and some Retailers even admitted that Jelly Cat
has been at the heart of their business for the past 10 years.
What's making the story story so difficult is that Jelly Cat always felt like
(02:30):
one of those rare, special brands that got it right. They had
the design, the creativity, the magic, and they had the loyalty of
independent shops who loved selling their products. Now that
relationship feels fractured. It's a reminder of how quickly things can
shift, even for a brand that seems untouchable. You can have a
beautiful product, loyal stockists and years of goodwill and still find
(02:52):
yourself in the middle of controversy when things go wrong. So who
are the company behind jellycat? Well, as a A brief
history they were founded in 1999 by two brothers, Thomas and
William Gattaca. The founders are notoriously publicity shy
and there are very few interviews or even quotes available from them.
The company grew, but things really took off in 2018 with the launch of
(03:15):
the inanimate objects with cute smiley faces. The Amusables
the Amusables were a major hit, tying in with the Kidult trend
where adults spend money on items more usually associated
with children, such as soft toys. According to a
2024 Guardian in Article, the brothers first hit the Sunday Times
rich list in 2018 when the business was valued at
(03:37):
155 million. By 2022,
revenue was reported to have jumped 72% on the previous
year to 146 million, then grew another
37% to 200 million in 2023
with a whopping 67 million pounds of pre tax
profit. So the company was growing fast
(03:59):
and in 2022, for the first time, the brothers
stepped back from the leadership of Jellycat. They brought in
Arno Mesal, who joined Jellycat in
2022 as CEO. It appears
that the business was growing rapidly and they decided to bring someone in with
previous experience in a global company. For
(04:20):
example, Arnault's previous company Ren Skincare, was quoted as
having a 1.2 billion pounds turnover in
2023. Interestingly, in light of what has happened recently
at Jellycat, Moselle, who was CEO at Rennes from
2017 before leaving for Jellycat in early 22,
presided over a move to refocus and reposition Ren
(04:41):
not only as a more sustainable brand, but also away from mass
market retailers and towards premium beauty. This is worth
bearing in mind as we continue through our story.
So jellycat has become in recent years, years more than just a toy brand.
(05:02):
It's a cultural phenomenon. On TikTok and Instagram,
dedicated fan accounts post daily about their collections, racking
up millions of views and Jelly Cat hunts, where collectors scour
shops for rare or retired designs have become a trend in their own
right. One of the biggest drivers of this viral moment has
been the Jelly Cat Pop Ups. These aren't just a place to buy a plush
(05:24):
toy, they're full blown experiences. They started in
late 2023 in New York where Jellycat partnered with
FAO Schwartz to launch the Jellycat diner where customers could
order a plush burger or milkshake and watch staff form a
playful cooking routine before serving the toy on a tray. It
became a social media sensation with reservations selling out and
(05:46):
tiktoks of the experience going viral. Then came the Paris
Patisserie Pop up in Galerie Lafayette Aussmann, a luxurious
French inspired setup where plush pastries were wrapped like high end
treats. The setting alone inside one of Paris's most
premium department stores was a statement. The Jelly Cat was positioning
itself as a lifestyle and design brand, not just a children's toy company.
(06:08):
And by the summer of 2024 London got its own version with the
fish and chips Pop up at Selfridges. The queues went around the block and my
own reel from that event became one of my most viewed posts of the year.
It was clever. Jellycat tapped into British nostalgia while
pairing it with One of the UK's most prestigious retailers, reinforcing the brand
as quirky, aspirational and fun. And let me tell you,
(06:31):
it was mostly adults at the Selfridges Pop up and they were
spending hundreds of pounds on these limited edition
items. These pop ups, they weren't just marketing stunts. They
signaled jellycat's ambition to move up market and cement its reputation
as a brand with premium design led credentials.
But alongside the success stories, a darker side started to
(06:53):
emerge. Police are hunting masked thieves who broke into an endless shop
by ramming the door with a car and a wooden plank. CCTV
footage shows one of the thieves grabbing jellycat collectible toys from the
shelves and packing them into a bag before taking off. The store owner,
The Gorge Bear Company estimates the total price of the 200 stolen toys
to be £20,000. There were reports of of
(07:15):
Jellycat thefts. With plush toys so valuable and in demand they had become
a target for shoplifters. And 2023 was also a
turning point for many independents. Some noticed that
jellycat's agents began to speak differently about the brand. There was a shift,
a move towards curating. Who represented the jellycat image?
(07:36):
Hannah Davis, who owned at the time West Stanton, a
design led kids store in Surrey, had been trying for years to become a
Jellycat stockist. Despite multiple conversations with Jellycat in
2021 and 2022, she was turned down. But in
2023, everything changed. The lady
that I'd spoken to numerous times and met with came
(07:58):
into my store and introduced Jelly Cat to me
as a brand. And I was like, this is so weird because I don't think
she knows that. We've met twice and spoken on email quite a few times.
So it's a bit like, this doesn't give me great vibes.
Anyway, search your inbox before you turn up in someone's shop. But she
was like, yeah, we would love you to stock jellycat. We're moving
(08:21):
away from like the Garden center Waterstones
vibe and we're really looking for like design led
independent stores. She said, the owners, I don't know who the owners of
jellycat are, but the owners really want it to be like a
trend design LED brand. You don't want it to be like
what granny buys the new baby anymore. We want it to be really cool. And
(08:42):
I was like, oh yeah, cool. Also thinking like,
I've replaced you because you said no to me for three years even
though I told you I was the design led store. I told you that I
wasn't like the other ones and you ignored me and in some scenarios were
a bit rude. So I was just like, oh, thank you. But actually, you know,
we've got other brands that are
(09:05):
cooler now, so I never ordered with them. But
yeah, it was an extreme pivot from the years of no, no, no to
Let me introduce you to jellycat. We would love you to work with us. And
did you get the sense that she'd come to the store because she'd maybe seen
your social media or she'd seen the store and she felt like it fit the
profile? Was she concerned about the way the store looked, for example?
Definitely, she said, because she had said. And actually with Leeward, when
(09:28):
I first stocked them, somebody came to to see how like the
aesthetics of the store were before they would approve me as a retailer. I'm
guessing jellycat kind of adopted that. But yeah, she had come in
to see the vibe, but I just thought it was very strange.
I don't know how she found me because I think in our previous
communications I'd shown her my Instagram to be like, look, I've got a decent following.
(09:50):
Like you can see the kind of brands I hold, how the aesthetics of
the shop are. But no, she fully came in as if
she had never heard of me. We'd Never spoken. So she said they were actively
looking to move away from some retailers. Yes.
She basically said the more old school it was definitely
garden centres. They didn't like jellycat being associated with garden centers
(10:12):
was the general gist that I got. And Waterstones, they were just
like as if it was a bit beneath them now where it is
kind of their bread and butter as well. Like I've worked with and
stocked so many brands over the years that they know who
their audience they want are but they're also. You
can't neglect the people who are actually buying from you. And Jenny Cat must
(10:35):
make a fortune out of the garden centers because you do have the
grannies going in and treating them and having a kids store granny is
spend a lot. Yeah. So it's like I get that you want to be trendy
and design led but you do make pink fluffy bunnies.
(11:00):
It was clear that jellycat's idea of who they were and who their retail base
should be was changing. The indie crisis really began in January
2025 when Jellycat made a major operational change.
They replaced their independent agents with an in house sales team.
From that moment on, according to both existing and former
stockists, ordering became much more difficult. It was email based.
(11:22):
There were no more phone calls or personal conversations with agents who really
knew the shops. And many at that point had not actually had anybody from
jellycat in their shop for quite some time. Then came the
letters. Stockists were suddenly divided into three
categories. The ones who were confirmed as official stockists going
forward. The ones who were told they had the potential to improve
(11:44):
with no real clarity on what that meant. And around 100
stockists, or roughly 8% of their network, were cut
entirely. Retailers were blindsided. There was no
explanation of how these decisions were made. And according to a current stockist I
spoke to, jellycat has never shared their criteria. Even for
those who weren't cut, the tone of communication felt unsettling.
(12:05):
One current stockist who was told they could continue but would need to improve
their jellycat experience to keep their status quo next year, described
it as feeling like a veiled threat. Instead of a sense of partnership, there was
a sense of being judged without clear standards or guidance.
Georgie Stewart from Stewart's of Bakewell in the Peak District was one of
the stockists to receive their letter withdrawing their status as an official
(12:28):
jellycat stockist. It came completely out of the
blue, although we had an inkling in the fact that it was
becoming increasingly difficult to keep supplying in the
store and they'd made it Very awkward placing orders
as well. But until the letter came, we didn't know any more
prior to that. And that was the 17th of June,
(12:50):
I see. And you hadn't had any direct communication
from your jellycat rep? It was just direct from the company.
Prior to January, we'd had an agent
and they were let go and they jellycat employed
reps, so we had a rep for the first time from January.
We only seen him once in store and
(13:13):
everything pretty much was done on email or
telephone. But it just made it very difficult
placing orders. They sent out an order form on a
Monday that you had do online, but it was
obscure things and then there was no guarantee that what you
ordered is, you know, you even could get it. And so
(13:36):
from having had stock in store for 20 years,
there was weeks where we have nothing or very, very little stock.
Yeah. So you'd been a Jelly cat stockist for 20 years, and when would you
say the stock problems really began? January, a little
bit before Christmas. It was becoming increasingly difficult,
but certainly the biggest problems came from January
(13:58):
onwards. How has it impacted you both emotionally,
to get informed in this way, but also from a business perspective?
Well, from a business perspective, it's been very difficult because
we've always believed, my husband and I were in partnership together
at the store, that we shouldn't sell any one products. But
(14:18):
jellycat has huge following
locally and with collectors. It will impact us,
obviously, and we're desperately looking around for new stockists.
And it's interesting how many people want you to suddenly stock their product
emotionally. It's been an absolute roller coaster. Just the
fact that it came out of the blue. There was no consultation.
(14:42):
The wording in the letter was awful. We've cried, there's no
doubt about it, we've both cried. Just because you think you're doing
your best and the way they've let us go.
So what was behind this decision is it simply about stock?
(15:04):
Stock certainly comes up again and again from the stockists who were cut
to those who are still on the list. Massive demand and limited availability
have become the defining challenge. I spoke with several current
jellycat stockists who, for obvious reasons, weren't able to talk publicly.
But when I asked one what their biggest wish was from jellycat, their answer was
immediately stock. The frustrations that they shared were
(15:26):
hard to ignore. There's no clear information about when stock will be available,
no proper B2B ordering system, and if you don't respond to a stock
email on the day it lands, you lose your chance to order back orders
are being canceled without notice. And crucially, the core lines such
as Bashful Bunnies, Bartholomew Bears that customers ask for
every single day have been unavailable for months at a time. If
(15:49):
you want to see real evidence of how the balance of power has really
shifted towards jellycat, one stockist told me that they were offered a
summer bundle. Now this summer bundle is something that I've heard about from a few
stockists, but this person went into a bit more detail. They said
with nothing else available, they felt they had no choice but to take this summer
bundle. But the bundle had to be purchased sight unseen. They didn't know necessarily,
(16:11):
necessarily what they were going to get. And surprise, surprise, when it arrived,
it wasn't made up of their best selling lines. In fact, it was full of
what seemed like obscure or slower selling items they knew that their
customers wouldn't buy. And they felt that it was a tactic by
jellycat to shift their own dead stock. As one
retailer told me bluntly, when I asked them what it was like working with jellycat,
(16:32):
they described them as. Tricky, arrogant, absent,
inefficient. Jellycat have certainly lost their cute and.
Fluffy appeal to deal with, and it's. This contrast between the
adorable, smiling toys and the strained relationship with their
stockist that has made this story so striking. So is
this a move to protect strange stock levels and perhaps give
(16:54):
priority to more premium channels? Of course, we can't know for
sure without being a fly on the wall in jellycat's boardroom. Now I did
reach out to jellycat and invite them to contribute to the this podcast, but
perhaps unsurprisingly, I didn't get a response. To get some
perspective, I turned to Therese Autumnblad, wholesale expert and founder of the
Small Business Collective, to hear her take on what has happened.
(17:19):
In my 17 years in the industry, I haven't really seen
any brand or company reshuffle
their stock is this way. There are many commercial reasons
why jellycat has made this decision. I'm sure we can
only speculate, but I think they made it very clear
that for them it's about brand positioning and perception.
(17:41):
Whether we agree with that or not, I believe that they
want their end consumer to have the same experience. Whether they're
shopping with an independent store or in one of their pop
ups or on their website, they want more control
of how their brand is perceived.
It's well known that they have had some stock challenges over
(18:03):
the last few years. With growing popularity
and dealing with larger retailers that
can buy bigger volumes and forecast more can really
help to forecast better and ease that load.
It will also mean less spend on resources because you need less
people in sales and customer service and sales administration,
(18:26):
less people packing orders, dealing with less small
orders from independents which can be time consuming. It
is less invoices, less bookkeeping, less
shipment coordination and a lot of things
just can become slightly easier I
suppose. I also believe that they are
(18:49):
moving more towards pay direct consumer
model with focusing more on their pop ups,
more on their big retailer partnerships,
more on retailing through their own website,
etc. Teresa's view that this is largely about cost cutting
and control mirrors what we've seen under jellycat CEO Arnaud
(19:11):
Meisel and his previous brand. Arnaud, who previously led Ren's
Skincare, is known for strategies built around tight brand control, operational
efficiency and premium positioning.
Streamlining wholesale means fewer small accounts to manage, less admin
and a stronger focus on larger retailers and direct to consumer
(19:34):
sales. Now direct to consumer sales naturally deliver
far higher margins, so they are often an area of focus,
especially for a brand with such strong brand awareness.
Automating systems and reducing personal interaction also helps
keep costs down. And here's the thing, cost cutting and margin
growth are not inherently bad moves. In fact, they're strategies I
(19:56):
often advise fast growing companies to adopt. And they're scaling because
they set the business up for long term success. So if this is what
jellycat is doing, there's a measure of good business sense behind it. And some
voices online even support jellycat's approach. They argue that the company
is deliberately holding back expansion while carefully and
slowly onboarding new factories to ensure capacity and
(20:18):
quality. The logic is that if jellycat just wanted to cash in, they could
have churned out lower quality versions years ago. But they haven't.
In that sense, it could be a sign they're trying to protect the premium image
of the brand and the quality of their products, even if the process
is frustrating. However, speculation among retailers, and it's
something I believe too, suggests that further cuts to independence are
(20:40):
likely. The open letter sent to some stockists telling them that their
Jellycat experience will be reviewed before confirming their
2026 status points strongly in that direction.
That said, it is also important to note that not all current stockists have had
a bad experience. One retailer told me my rep was
very interested in how we present not just jellycat products, but our whole shop,
(21:02):
our ethos, the way we dispatch online sales beautifully boxed with
handwritten messages. She spent over two hours with me
talking about how jellycat wants its stockists to align with their brand.
Well I'm not here to defend a multi million pound company. I do hope
I'm not the only one who's had a slightly better experience. This
highlights the jellycat's approach, for better or worse, is about curation and
(21:24):
alignment. They want their brand represented in a certain way
and some shops see that as a positive challenge, while others naturally
feel excluded, especially the way that the change was communicated.
To get another perspective, I spoke with Hilary James, founder of
Wardrobe at the Cross, a womenswear boutique in Cheshire. Hillary once
tried to stock jellycat but never got through their door. As a
(21:46):
retailer and a marketing consultant and fractional cmo, she can see
both sides of the jellycat conundrum.
I would say that there are some amazing retail environments where jellycat is
sold beautifully. So for example, and I've seen various pieces
around Insta in the last few days of beautiful retail environments,
independent retail environments that could not be more exquisite
(22:09):
and offer the flourish that I think Jelly Cat would want. And
to me that seems crazy that they wouldn't want that individual
interpretation of their brand. Some of these retailers have supported them for
20, 25 years when they were nothing. That seems
really sad, but also quite shaky from a commercial point
of view from them, because those environments look beautiful to me.
(22:31):
I can see that maybe there are certain environments that are perhaps not optimum,
then they're not selling the story. But actually there are some beautiful
independents selling that story incredibly well. And I think that can only be
brand enhancing. That letter that was sent was emotionless,
void of any humor or jellycat touches. It was just kind
of a Dear John, there we go. So just playing it out as a brand
(22:53):
marketeer, really poor. However, I can see their point.
If they have got a real protection problem around
this brand and they do believe it's perhaps not being sold in the
best environments, they have a job to do for their shareholders, for the
brand, to make sure that they continue to grow in the way they wish to,
to protect that brand. And their brand is everything to them. You can see
(23:16):
that from that collateral, their Insta, everything they put out there
brand is absolutely central to them. I can see the reason.
However, I think there is a bit of a conceit there because I do believe
that, you know, they're sending out these things saying it's all about stock, we can't
supply you. I actually think, yes, I'm sure there is a stock problem.
I'm sure they can't supply everybody, but I do think
(23:39):
that it's more about brand than it is about stock.
Ultimately, this story is beginning to feel like a brand desperately trying
to control and harness its viral success, all while juggling
stock shortages and negative press around Jelly Cat thefts. But
the biggest issue here isn't just what they've done, it's how they have
communicated it.
(24:06):
According to BBC's you and yours, Jellycat did issue a public
apology in their statement to the BBC, but crucially there was
no direct apology to the stockists themselves, the very businesses
that helped build their success. Going back to
Hilary James point, the real sting in all of this lies in the tone and
delivery of the news. Stockists were hit with vague corporate
(24:28):
sounding brand elevation emails with no real explanation of what that
meant and often no actual visit from jellycat in a
long time. For many, this lack of clarity caused confusion
and genuine hurt. To dig into the communication side of the story,
I spoke with Fiona Minute, PRX expert and founder of Boss yous pr
to hear her thoughts on how jellycat handled their messaging.
(24:51):
So from a PR on comms perspective I have to say I was
absolutely startled actually by the way that
this was actioned and handled by
jellycat. I rated quite poorly. There was a real
lack of transparency, there was no personal approach, there was
zero empathy, there was dismissive tone and
(25:13):
retailers partners were from all accounts left
quite blindsided. Effective communications
should provide clear, honest reasons for
decisions such as these and jellycat didn't.
There was sort of abrupt dismissive emails,
correspondence with very little explanation. So
(25:35):
we're sorry to let you know that we'll no longer be supplying jellycat products
to ex stockist and the reason
given was a brand elevation strategy. What does that mean?
What does that mean to a trusted stockist? To a
trusted partner? There was no personal sort of
address to jellycat stockist. I mean it's laughably
(25:58):
far from being personalised and respectful. A real lack
of clarity also comes through in terms of both the wider reasoning
and understanding the context for the changes, but also in the
implications of this kind of overhaul and this move.
Some stockists being told that they would no longer be supplied, you know, please do
not place more orders as they. Will not be fulfilled. And Alice were told that
(26:20):
their accounts would be unaffected, that supply would continue where
available, but that they would not be an official jellycat stockist.
And not only are jellycat dismissing previously
trusted stockists and partners, they are creating
a tiered system again amongst other
trusted partners and stockists. You know, small businesses
(26:42):
that have shown loyalty to the jellycat brand
and the tone of the communication really
suggested to partners stockists that they
were no longer valuable to jellycat. And this kind of language
really seriously damages trust. It
erodes goodwill both amongst stockists partners,
(27:05):
but also the wider retail community and
consumers. And there seems to have been
very little acknowledgement on the part of Delicap as to
how the change would affect small businesses, both
financially and emotionally. Fiona was not the only
person to be shocked and taken aback by the tone of jellycats
(27:27):
letters. After those letters went out, many stockists took to social
media to voice their frustration and to share screenshots of what they've received.
And the backlash has been severe. Jellycat's trustpilot page
had to be turned off after it was flooded with negative reviews from angry customers
and retailers. Social media is awash with critical posts, and even
some of the large jellycat fan accounts, the ones that used to create so
(27:50):
much free buzz for the brand, have started speaking out. One of the
current stockies I spoke to told me about the conversations that she's had with customers.
As one shopper put it, we'd rather buy our jellycats with you than in big
stores like we always have. It's our tradition. And that's the problem.
Jellycats move towards a tightly controlled premium retail model
directly conflicts with the hunt mentality that made the brand so special.
(28:12):
Customers loved the thrill of discovering a new jellycat in an unexpected
independent shop, but that sense of adventure is disappearing.
Instead, everything feels like it's being funneled into a narrow, high end vision of
the brand. And that raises a simple question. Why couldn't jellycat have
created a range for smaller shops and another for high end retailers?
There was a way to balance brand elevation with loyalty to the independents who
(28:34):
helped them grow. But that opportunity seems to have been missed. For
example, the core products like the Bashful Bunny and Bartholomew Bear could be kept always
in stock and available to service the lucrative gifting market for
the more limited range in premium retail destinations for the collectors,
Surely that could have been a compromise to keep everyone happy. All of this
makes me wonder, is Jelly Cat at risk of becoming just
(28:56):
another fad now? I had seen this pattern before.
Back in the late 90s I spent a summer working in a shop in the
US and one of my jobs was restocking the Ty Beanie
Babies. I remember having crowds of people waiting for for us
to put them out on the shelves and the hands pushing me out of the
way and grabbing them out of the box as soon as I put it down.
(29:18):
So we've had waves of these toy crazes before from Beanie
Babies to Beanie Boos, Squishmallows, and now
labubu. The thing about these crazes is that they can
explode overnight and burn out just as quickly. Jelly
Cat has tapped into that same collectible energy. The limited editions,
the resale market, the viral moments on TikTok. But if they push
(29:40):
too far, they risk alienating the very community that made them a
household name. And there's already evidence of cracks, the
trust pilot backlash, the social media negativity and the sense among
retailers and fans that something has changed with even
some of the biggest jellycat fan accounts speaking out or pulling back from
promoting the brand. And I keep thinking, what happens next?
(30:02):
Will jellycat continue down this path of high end potential positioning and centralized
control? Or will they find a way to bring back some of the charm, the
accessibility and the loyalty that the independents helped build?
Because as history has shown us, with these types of toy crazes,
loyalty and community are the things that last, not just hype.
And what we don't know is whether or not this negative publicity will in
(30:25):
itself be the downfall of jellycat. Fiona Minute feels that the risk
to sales is real, but only time will tell. And in the context
of jellycat, a brand that relies on emotional
connection and brand loyalty, an erosion of trust and goodwill
can occur when mistreatment has maybe been
displayed in the supply chain or within business dealings.
(30:48):
Because many consumers, and a sort of growing number of
consumers might prefer to support small independent
businesses, especially if this is where they have been purchasing jellycats
up until now. And if they see those businesses being
poorly treated, then some might choose to stop buying
a certain brand altogether, look for alternatives
(31:11):
by means of continuing to support the independent
businesses. And this could lead to a dip in sales
amongst core customer groups that may be value
affecting ethical and more community conscious
brands. We've also got to keep in mind that
public sentiment is even louder these days thanks to the
(31:33):
amplification that comes with social media and any
negative swell of opinion. Fact, whatever it might be,
can be quick to spread. Conversely, as
purchasers in that kind of fast paced
retail world, we can be fickle, we can be
quick to forget. Jellycat's story is a reminder of how
(31:54):
complex success can be. A brand that started with something as simple as
a soft toy has become a global phenomenon. But with that journey has
come friction, stock shortages and tough decisions about who gets to
stay on the journey. For retailers, there's a clear
lesson here. Don't put all your eggs in one basket. It is worth
pointing out that according to its current stockists, jellycat themselves
(32:17):
do not feel comfortable with people taking too large of a percentage of sales
from jellycat. It's something that they actively really do encourage
their stockists not to do. And as Therese Ortonblad
suggests, protect yourself by having strong alternatives in each
degree in your shop. No single supplier should hold that much
power over your business. The best thing an independent retailer
(32:39):
can do to protect themselves is to have a
diverse supplier base to avoid becoming
overly reliant on one or two key brands to
drive footfall and sales.
I having a mix of best sellers from different types of
brands, I think that it is always if a
(33:01):
category is doing really well, having a second
option within that category I think is a
good strategy. So that if something
were to happen, if that best selling brand has
any supply issues, they decide to go in a different
direction or anything like that, you have
(33:23):
something up and coming coming up behind that.
For brands, the takeaway is just as important. Love your
stockists. They are your storytellers. They're the ones who bring
your products to life in front of customers, build loyalty and create
those little moments of magic. Without them, the story loses some of
(33:47):
its soul. And if you do have to make difficult decisions, be
kind, be human and communicate in a way that is
respectful. This episode isn't just about jellycat, it's about
the wider relationship between brands and the independent shops that champion
them. There's so much that could have been done differently, with more care,
more communication and more respect. If this episode
(34:09):
resonated with you, I'd love for you to share it with a friend, a fellow
retailer, parent, or someone who loves the independent shop experience.
Because behind many best selling products, there's a network of
independent retailers who believed in it first and they deserve
to be part of the story. Thank you so much for listening. Listening. Do take
a moment to follow the podcast or
(34:30):
subscribe whatever platform that you're on and if you have a minute to rate and
review it Inside Apple Podcast, that makes all the difference. See you next week.
From viral plush toys to furious stockists, jellycat's story
isn't all cute and fluffy. Today we're exploring what's really going
on behind the British success story that has been hitting the headlines for all
the wrong reasons. I just thought it was very strange because I think in our
previous communications I'd shown her my Instagram to be look, I've got a decent
following. They'd made it very awkward placing orders
(00:22):
as well, but until the letter came we didn't know any more. You
know, prior to that. With them it's about brand positioning and
perception, whether we agree with that or not.
Welcome to the Resilient Retail Game Plan. I'm Catherine Edley and in the
next few minutes you're about to get powerful real world retail strategies
(00:42):
from insights shared both from my guests and myself, backed up
by my 25 years in the retail industry. Keep listening to
learn how to grow a thriving, profitable product business. Let's
jump in with this latest episode.
What fascinates me about this story is that it's not only a thought provoking
(01:03):
and cautionary tale about what happens when a brand takes off, but it's
a story about a brand I've long been aware of as both a retail expert
and a parent. So when I started to see the backlash on social
media from shops who had been dropped by jellycat, I knew I wanted to put
together a podcast episode to really dive into the details.
It all started for me when my daughter was a baby and someone gave her
(01:25):
a bashful bunny, one of those classic Jelly Cat to that's instantly
lovable. A few years later, JellyCat launched the
amusables range, inanimate objects with smiling faces and dangly
legs. That was the year we bought her the smiling watermelon for her
eighth birthday and it quickly became one of her favorite toys.
Jelly Cats were such a regular feature of her Christmas and birthday list that when
(01:46):
she turned 14, we threw a Jelly Cat themed birthday party.
I spent hours decorating food with tiny smiling faces just like
the amusables. And she loved it. The centerpiece was a cake made
to look just like the Jelly Cat birthday cake plush. Last
year we even made the trip to Selfridges to visit the fish and chips Pop
up, which was ended up being one of my most popular reels on
(02:08):
Instagram. But this story isn't about me and my family. One day I
shared on Instagram that I was planning an episode about jellycat. I was
overwhelmed by the response. People told me how deeply they
care about this brand and some Retailers even admitted that Jelly Cat
has been at the heart of their business for the past 10 years.
What's making the story story so difficult is that Jelly Cat always felt like
(02:30):
one of those rare, special brands that got it right. They had
the design, the creativity, the magic, and they had the loyalty of
independent shops who loved selling their products. Now that
relationship feels fractured. It's a reminder of how quickly things can
shift, even for a brand that seems untouchable. You can have a
beautiful product, loyal stockists and years of goodwill and still find
(02:52):
yourself in the middle of controversy when things go wrong. So who
are the company behind jellycat? Well, as a A brief
history they were founded in 1999 by two brothers, Thomas and
William Gattaca. The founders are notoriously publicity shy
and there are very few interviews or even quotes available from them.
The company grew, but things really took off in 2018 with the launch of
(03:15):
the inanimate objects with cute smiley faces. The Amusables
the Amusables were a major hit, tying in with the Kidult trend
where adults spend money on items more usually associated
with children, such as soft toys. According to a
2024 Guardian in Article, the brothers first hit the Sunday Times
rich list in 2018 when the business was valued at
(03:37):
155 million. By 2022,
revenue was reported to have jumped 72% on the previous
year to 146 million, then grew another
37% to 200 million in 2023
with a whopping 67 million pounds of pre tax
profit. So the company was growing fast
(03:59):
and in 2022, for the first time, the brothers
stepped back from the leadership of Jellycat. They brought in
Arno Mesal, who joined Jellycat in
2022 as CEO. It appears
that the business was growing rapidly and they decided to bring someone in with
previous experience in a global company. For
(04:20):
example, Arnault's previous company Ren Skincare, was quoted as
having a 1.2 billion pounds turnover in
2023. Interestingly, in light of what has happened recently
at Jellycat, Moselle, who was CEO at Rennes from
2017 before leaving for Jellycat in early 22,
presided over a move to refocus and reposition Ren
(04:41):
not only as a more sustainable brand, but also away from mass
market retailers and towards premium beauty. This is worth
bearing in mind as we continue through our story.
So jellycat has become in recent years, years more than just a toy brand.
(05:02):
It's a cultural phenomenon. On TikTok and Instagram,
dedicated fan accounts post daily about their collections, racking
up millions of views and Jelly Cat hunts, where collectors scour
shops for rare or retired designs have become a trend in their own
right. One of the biggest drivers of this viral moment has
been the Jelly Cat Pop Ups. These aren't just a place to buy a plush
(05:24):
toy, they're full blown experiences. They started in
late 2023 in New York where Jellycat partnered with
FAO Schwartz to launch the Jellycat diner where customers could
order a plush burger or milkshake and watch staff form a
playful cooking routine before serving the toy on a tray. It
became a social media sensation with reservations selling out and
(05:46):
tiktoks of the experience going viral. Then came the Paris
Patisserie Pop up in Galerie Lafayette Aussmann, a luxurious
French inspired setup where plush pastries were wrapped like high end
treats. The setting alone inside one of Paris's most
premium department stores was a statement. The Jelly Cat was positioning
itself as a lifestyle and design brand, not just a children's toy company.
(06:08):
And by the summer of 2024 London got its own version with the
fish and chips Pop up at Selfridges. The queues went around the block and my
own reel from that event became one of my most viewed posts of the year.
It was clever. Jellycat tapped into British nostalgia while
pairing it with One of the UK's most prestigious retailers, reinforcing the brand
as quirky, aspirational and fun. And let me tell you,
(06:31):
it was mostly adults at the Selfridges Pop up and they were
spending hundreds of pounds on these limited edition
items. These pop ups, they weren't just marketing stunts. They
signaled jellycat's ambition to move up market and cement its reputation
as a brand with premium design led credentials.
But alongside the success stories, a darker side started to
(06:53):
emerge. Police are hunting masked thieves who broke into an endless shop
by ramming the door with a car and a wooden plank. CCTV
footage shows one of the thieves grabbing jellycat collectible toys from the
shelves and packing them into a bag before taking off. The store owner,
The Gorge Bear Company estimates the total price of the 200 stolen toys
to be £20,000. There were reports of of
(07:15):
Jellycat thefts. With plush toys so valuable and in demand they had become
a target for shoplifters. And 2023 was also a
turning point for many independents. Some noticed that
jellycat's agents began to speak differently about the brand. There was a shift,
a move towards curating. Who represented the jellycat image?
(07:36):
Hannah Davis, who owned at the time West Stanton, a
design led kids store in Surrey, had been trying for years to become a
Jellycat stockist. Despite multiple conversations with Jellycat in
2021 and 2022, she was turned down. But in
2023, everything changed. The lady
that I'd spoken to numerous times and met with came
(07:58):
into my store and introduced Jelly Cat to me
as a brand. And I was like, this is so weird because I don't think
she knows that. We've met twice and spoken on email quite a few times.
So it's a bit like, this doesn't give me great vibes.
Anyway, search your inbox before you turn up in someone's shop. But she
was like, yeah, we would love you to stock jellycat. We're moving
(08:21):
away from like the Garden center Waterstones
vibe and we're really looking for like design led
independent stores. She said, the owners, I don't know who the owners of
jellycat are, but the owners really want it to be like a
trend design LED brand. You don't want it to be like
what granny buys the new baby anymore. We want it to be really cool. And
(08:42):
I was like, oh yeah, cool. Also thinking like,
I've replaced you because you said no to me for three years even
though I told you I was the design led store. I told you that I
wasn't like the other ones and you ignored me and in some scenarios were
a bit rude. So I was just like, oh, thank you. But actually, you know,
we've got other brands that are
(09:05):
cooler now, so I never ordered with them. But
yeah, it was an extreme pivot from the years of no, no, no to
Let me introduce you to jellycat. We would love you to work with us. And
did you get the sense that she'd come to the store because she'd maybe seen
your social media or she'd seen the store and she felt like it fit the
profile? Was she concerned about the way the store looked, for example?
Definitely, she said, because she had said. And actually with Leeward, when
(09:28):
I first stocked them, somebody came to to see how like the
aesthetics of the store were before they would approve me as a retailer. I'm
guessing jellycat kind of adopted that. But yeah, she had come in
to see the vibe, but I just thought it was very strange.
I don't know how she found me because I think in our previous
communications I'd shown her my Instagram to be like, look, I've got a decent following.
(09:50):
Like you can see the kind of brands I hold, how the aesthetics of
the shop are. But no, she fully came in as if
she had never heard of me. We'd Never spoken. So she said they were actively
looking to move away from some retailers. Yes.
She basically said the more old school it was definitely
garden centres. They didn't like jellycat being associated with garden centers
(10:12):
was the general gist that I got. And Waterstones, they were just
like as if it was a bit beneath them now where it is
kind of their bread and butter as well. Like I've worked with and
stocked so many brands over the years that they know who
their audience they want are but they're also. You
can't neglect the people who are actually buying from you. And Jenny Cat must
(10:35):
make a fortune out of the garden centers because you do have the
grannies going in and treating them and having a kids store granny is
spend a lot. Yeah. So it's like I get that you want to be trendy
and design led but you do make pink fluffy bunnies.
(11:00):
It was clear that jellycat's idea of who they were and who their retail base
should be was changing. The indie crisis really began in January
2025 when Jellycat made a major operational change.
They replaced their independent agents with an in house sales team.
From that moment on, according to both existing and former
stockists, ordering became much more difficult. It was email based.
(11:22):
There were no more phone calls or personal conversations with agents who really
knew the shops. And many at that point had not actually had anybody from
jellycat in their shop for quite some time. Then came the
letters. Stockists were suddenly divided into three
categories. The ones who were confirmed as official stockists going
forward. The ones who were told they had the potential to improve
(11:44):
with no real clarity on what that meant. And around 100
stockists, or roughly 8% of their network, were cut
entirely. Retailers were blindsided. There was no
explanation of how these decisions were made. And according to a current stockist I
spoke to, jellycat has never shared their criteria. Even for
those who weren't cut, the tone of communication felt unsettling.
(12:05):
One current stockist who was told they could continue but would need to improve
their jellycat experience to keep their status quo next year, described
it as feeling like a veiled threat. Instead of a sense of partnership, there was
a sense of being judged without clear standards or guidance.
Georgie Stewart from Stewart's of Bakewell in the Peak District was one of
the stockists to receive their letter withdrawing their status as an official
(12:28):
jellycat stockist. It came completely out of the
blue, although we had an inkling in the fact that it was
becoming increasingly difficult to keep supplying in the
store and they'd made it Very awkward placing orders
as well. But until the letter came, we didn't know any more
prior to that. And that was the 17th of June,
(12:50):
I see. And you hadn't had any direct communication
from your jellycat rep? It was just direct from the company.
Prior to January, we'd had an agent
and they were let go and they jellycat employed
reps, so we had a rep for the first time from January.
We only seen him once in store and
(13:13):
everything pretty much was done on email or
telephone. But it just made it very difficult
placing orders. They sent out an order form on a
Monday that you had do online, but it was
obscure things and then there was no guarantee that what you
ordered is, you know, you even could get it. And so
(13:36):
from having had stock in store for 20 years,
there was weeks where we have nothing or very, very little stock.
Yeah. So you'd been a Jelly cat stockist for 20 years, and when would you
say the stock problems really began? January, a little
bit before Christmas. It was becoming increasingly difficult,
but certainly the biggest problems came from January
(13:58):
onwards. How has it impacted you both emotionally,
to get informed in this way, but also from a business perspective?
Well, from a business perspective, it's been very difficult because
we've always believed, my husband and I were in partnership together
at the store, that we shouldn't sell any one products. But
(14:18):
jellycat has huge following
locally and with collectors. It will impact us,
obviously, and we're desperately looking around for new stockists.
And it's interesting how many people want you to suddenly stock their product
emotionally. It's been an absolute roller coaster. Just the
fact that it came out of the blue. There was no consultation.
(14:42):
The wording in the letter was awful. We've cried, there's no
doubt about it, we've both cried. Just because you think you're doing
your best and the way they've let us go.
So what was behind this decision is it simply about stock?
(15:04):
Stock certainly comes up again and again from the stockists who were cut
to those who are still on the list. Massive demand and limited availability
have become the defining challenge. I spoke with several current
jellycat stockists who, for obvious reasons, weren't able to talk publicly.
But when I asked one what their biggest wish was from jellycat, their answer was
immediately stock. The frustrations that they shared were
(15:26):
hard to ignore. There's no clear information about when stock will be available,
no proper B2B ordering system, and if you don't respond to a stock
email on the day it lands, you lose your chance to order back orders
are being canceled without notice. And crucially, the core lines such
as Bashful Bunnies, Bartholomew Bears that customers ask for
every single day have been unavailable for months at a time. If
(15:49):
you want to see real evidence of how the balance of power has really
shifted towards jellycat, one stockist told me that they were offered a
summer bundle. Now this summer bundle is something that I've heard about from a few
stockists, but this person went into a bit more detail. They said
with nothing else available, they felt they had no choice but to take this summer
bundle. But the bundle had to be purchased sight unseen. They didn't know necessarily,
(16:11):
necessarily what they were going to get. And surprise, surprise, when it arrived,
it wasn't made up of their best selling lines. In fact, it was full of
what seemed like obscure or slower selling items they knew that their
customers wouldn't buy. And they felt that it was a tactic by
jellycat to shift their own dead stock. As one
retailer told me bluntly, when I asked them what it was like working with jellycat,
(16:32):
they described them as. Tricky, arrogant, absent,
inefficient. Jellycat have certainly lost their cute and.
Fluffy appeal to deal with, and it's. This contrast between the
adorable, smiling toys and the strained relationship with their
stockist that has made this story so striking. So is
this a move to protect strange stock levels and perhaps give
(16:54):
priority to more premium channels? Of course, we can't know for
sure without being a fly on the wall in jellycat's boardroom. Now I did
reach out to jellycat and invite them to contribute to the this podcast, but
perhaps unsurprisingly, I didn't get a response. To get some
perspective, I turned to Therese Autumnblad, wholesale expert and founder of the
Small Business Collective, to hear her take on what has happened.
(17:19):
In my 17 years in the industry, I haven't really seen
any brand or company reshuffle
their stock is this way. There are many commercial reasons
why jellycat has made this decision. I'm sure we can
only speculate, but I think they made it very clear
that for them it's about brand positioning and perception.
(17:41):
Whether we agree with that or not, I believe that they
want their end consumer to have the same experience. Whether they're
shopping with an independent store or in one of their pop
ups or on their website, they want more control
of how their brand is perceived.
It's well known that they have had some stock challenges over
(18:03):
the last few years. With growing popularity
and dealing with larger retailers that
can buy bigger volumes and forecast more can really
help to forecast better and ease that load.
It will also mean less spend on resources because you need less
people in sales and customer service and sales administration,
(18:26):
less people packing orders, dealing with less small
orders from independents which can be time consuming. It
is less invoices, less bookkeeping, less
shipment coordination and a lot of things
just can become slightly easier I
suppose. I also believe that they are
(18:49):
moving more towards pay direct consumer
model with focusing more on their pop ups,
more on their big retailer partnerships,
more on retailing through their own website,
etc. Teresa's view that this is largely about cost cutting
and control mirrors what we've seen under jellycat CEO Arnaud
(19:11):
Meisel and his previous brand. Arnaud, who previously led Ren's
Skincare, is known for strategies built around tight brand control, operational
efficiency and premium positioning.
Streamlining wholesale means fewer small accounts to manage, less admin
and a stronger focus on larger retailers and direct to consumer
(19:34):
sales. Now direct to consumer sales naturally deliver
far higher margins, so they are often an area of focus,
especially for a brand with such strong brand awareness.
Automating systems and reducing personal interaction also helps
keep costs down. And here's the thing, cost cutting and margin
growth are not inherently bad moves. In fact, they're strategies I
(19:56):
often advise fast growing companies to adopt. And they're scaling because
they set the business up for long term success. So if this is what
jellycat is doing, there's a measure of good business sense behind it. And some
voices online even support jellycat's approach. They argue that the company
is deliberately holding back expansion while carefully and
slowly onboarding new factories to ensure capacity and
(20:18):
quality. The logic is that if jellycat just wanted to cash in, they could
have churned out lower quality versions years ago. But they haven't.
In that sense, it could be a sign they're trying to protect the premium image
of the brand and the quality of their products, even if the process
is frustrating. However, speculation among retailers, and it's
something I believe too, suggests that further cuts to independence are
(20:40):
likely. The open letter sent to some stockists telling them that their
Jellycat experience will be reviewed before confirming their
2026 status points strongly in that direction.
That said, it is also important to note that not all current stockists have had
a bad experience. One retailer told me my rep was
very interested in how we present not just jellycat products, but our whole shop,
(21:02):
our ethos, the way we dispatch online sales beautifully boxed with
handwritten messages. She spent over two hours with me
talking about how jellycat wants its stockists to align with their brand.
Well I'm not here to defend a multi million pound company. I do hope
I'm not the only one who's had a slightly better experience. This
highlights the jellycat's approach, for better or worse, is about curation and
(21:24):
alignment. They want their brand represented in a certain way
and some shops see that as a positive challenge, while others naturally
feel excluded, especially the way that the change was communicated.
To get another perspective, I spoke with Hilary James, founder of
Wardrobe at the Cross, a womenswear boutique in Cheshire. Hillary once
tried to stock jellycat but never got through their door. As a
(21:46):
retailer and a marketing consultant and fractional cmo, she can see
both sides of the jellycat conundrum.
I would say that there are some amazing retail environments where jellycat is
sold beautifully. So for example, and I've seen various pieces
around Insta in the last few days of beautiful retail environments,
independent retail environments that could not be more exquisite
(22:09):
and offer the flourish that I think Jelly Cat would want. And
to me that seems crazy that they wouldn't want that individual
interpretation of their brand. Some of these retailers have supported them for
20, 25 years when they were nothing. That seems
really sad, but also quite shaky from a commercial point
of view from them, because those environments look beautiful to me.
(22:31):
I can see that maybe there are certain environments that are perhaps not optimum,
then they're not selling the story. But actually there are some beautiful
independents selling that story incredibly well. And I think that can only be
brand enhancing. That letter that was sent was emotionless,
void of any humor or jellycat touches. It was just kind
of a Dear John, there we go. So just playing it out as a brand
(22:53):
marketeer, really poor. However, I can see their point.
If they have got a real protection problem around
this brand and they do believe it's perhaps not being sold in the
best environments, they have a job to do for their shareholders, for the
brand, to make sure that they continue to grow in the way they wish to,
to protect that brand. And their brand is everything to them. You can see
(23:16):
that from that collateral, their Insta, everything they put out there
brand is absolutely central to them. I can see the reason.
However, I think there is a bit of a conceit there because I do believe
that, you know, they're sending out these things saying it's all about stock, we can't
supply you. I actually think, yes, I'm sure there is a stock problem.
I'm sure they can't supply everybody, but I do think
(23:39):
that it's more about brand than it is about stock.
Ultimately, this story is beginning to feel like a brand desperately trying
to control and harness its viral success, all while juggling
stock shortages and negative press around Jelly Cat thefts. But
the biggest issue here isn't just what they've done, it's how they have
communicated it.
(24:06):
According to BBC's you and yours, Jellycat did issue a public
apology in their statement to the BBC, but crucially there was
no direct apology to the stockists themselves, the very businesses
that helped build their success. Going back to
Hilary James point, the real sting in all of this lies in the tone and
delivery of the news. Stockists were hit with vague corporate
(24:28):
sounding brand elevation emails with no real explanation of what that
meant and often no actual visit from jellycat in a
long time. For many, this lack of clarity caused confusion
and genuine hurt. To dig into the communication side of the story,
I spoke with Fiona Minute, PRX expert and founder of Boss yous pr
to hear her thoughts on how jellycat handled their messaging.
(24:51):
So from a PR on comms perspective I have to say I was
absolutely startled actually by the way that
this was actioned and handled by
jellycat. I rated quite poorly. There was a real
lack of transparency, there was no personal approach, there was
zero empathy, there was dismissive tone and
(25:13):
retailers partners were from all accounts left
quite blindsided. Effective communications
should provide clear, honest reasons for
decisions such as these and jellycat didn't.
There was sort of abrupt dismissive emails,
correspondence with very little explanation. So
(25:35):
we're sorry to let you know that we'll no longer be supplying jellycat products
to ex stockist and the reason
given was a brand elevation strategy. What does that mean?
What does that mean to a trusted stockist? To a
trusted partner? There was no personal sort of
address to jellycat stockist. I mean it's laughably
(25:58):
far from being personalised and respectful. A real lack
of clarity also comes through in terms of both the wider reasoning
and understanding the context for the changes, but also in the
implications of this kind of overhaul and this move.
Some stockists being told that they would no longer be supplied, you know, please do
not place more orders as they. Will not be fulfilled. And Alice were told that
(26:20):
their accounts would be unaffected, that supply would continue where
available, but that they would not be an official jellycat stockist.
And not only are jellycat dismissing previously
trusted stockists and partners, they are creating
a tiered system again amongst other
trusted partners and stockists. You know, small businesses
(26:42):
that have shown loyalty to the jellycat brand
and the tone of the communication really
suggested to partners stockists that they
were no longer valuable to jellycat. And this kind of language
really seriously damages trust. It
erodes goodwill both amongst stockists partners,
(27:05):
but also the wider retail community and
consumers. And there seems to have been
very little acknowledgement on the part of Delicap as to
how the change would affect small businesses, both
financially and emotionally. Fiona was not the only
person to be shocked and taken aback by the tone of jellycats
(27:27):
letters. After those letters went out, many stockists took to social
media to voice their frustration and to share screenshots of what they've received.
And the backlash has been severe. Jellycat's trustpilot page
had to be turned off after it was flooded with negative reviews from angry customers
and retailers. Social media is awash with critical posts, and even
some of the large jellycat fan accounts, the ones that used to create so
(27:50):
much free buzz for the brand, have started speaking out. One of the
current stockies I spoke to told me about the conversations that she's had with customers.
As one shopper put it, we'd rather buy our jellycats with you than in big
stores like we always have. It's our tradition. And that's the problem.
Jellycats move towards a tightly controlled premium retail model
directly conflicts with the hunt mentality that made the brand so special.
(28:12):
Customers loved the thrill of discovering a new jellycat in an unexpected
independent shop, but that sense of adventure is disappearing.
Instead, everything feels like it's being funneled into a narrow, high end vision of
the brand. And that raises a simple question. Why couldn't jellycat have
created a range for smaller shops and another for high end retailers?
There was a way to balance brand elevation with loyalty to the independents who
(28:34):
helped them grow. But that opportunity seems to have been missed. For
example, the core products like the Bashful Bunny and Bartholomew Bear could be kept always
in stock and available to service the lucrative gifting market for
the more limited range in premium retail destinations for the collectors,
Surely that could have been a compromise to keep everyone happy. All of this
makes me wonder, is Jelly Cat at risk of becoming just
(28:56):
another fad now? I had seen this pattern before.
Back in the late 90s I spent a summer working in a shop in the
US and one of my jobs was restocking the Ty Beanie
Babies. I remember having crowds of people waiting for for us
to put them out on the shelves and the hands pushing me out of the
way and grabbing them out of the box as soon as I put it down.
(29:18):
So we've had waves of these toy crazes before from Beanie
Babies to Beanie Boos, Squishmallows, and now
labubu. The thing about these crazes is that they can
explode overnight and burn out just as quickly. Jelly
Cat has tapped into that same collectible energy. The limited editions,
the resale market, the viral moments on TikTok. But if they push
(29:40):
too far, they risk alienating the very community that made them a
household name. And there's already evidence of cracks, the
trust pilot backlash, the social media negativity and the sense among
retailers and fans that something has changed with even
some of the biggest jellycat fan accounts speaking out or pulling back from
promoting the brand. And I keep thinking, what happens next?
(30:02):
Will jellycat continue down this path of high end potential positioning and centralized
control? Or will they find a way to bring back some of the charm, the
accessibility and the loyalty that the independents helped build?
Because as history has shown us, with these types of toy crazes,
loyalty and community are the things that last, not just hype.
And what we don't know is whether or not this negative publicity will in
(30:25):
itself be the downfall of jellycat. Fiona Minute feels that the risk
to sales is real, but only time will tell. And in the context
of jellycat, a brand that relies on emotional
connection and brand loyalty, an erosion of trust and goodwill
can occur when mistreatment has maybe been
displayed in the supply chain or within business dealings.
(30:48):
Because many consumers, and a sort of growing number of
consumers might prefer to support small independent
businesses, especially if this is where they have been purchasing jellycats
up until now. And if they see those businesses being
poorly treated, then some might choose to stop buying
a certain brand altogether, look for alternatives
(31:11):
by means of continuing to support the independent
businesses. And this could lead to a dip in sales
amongst core customer groups that may be value
affecting ethical and more community conscious
brands. We've also got to keep in mind that
public sentiment is even louder these days thanks to the
(31:33):
amplification that comes with social media and any
negative swell of opinion. Fact, whatever it might be,
can be quick to spread. Conversely, as
purchasers in that kind of fast paced
retail world, we can be fickle, we can be
quick to forget. Jellycat's story is a reminder of how
(31:54):
complex success can be. A brand that started with something as simple as
a soft toy has become a global phenomenon. But with that journey has
come friction, stock shortages and tough decisions about who gets to
stay on the journey. For retailers, there's a clear
lesson here. Don't put all your eggs in one basket. It is worth
pointing out that according to its current stockists, jellycat themselves
(32:17):
do not feel comfortable with people taking too large of a percentage of sales
from jellycat. It's something that they actively really do encourage
their stockists not to do. And as Therese Ortonblad
suggests, protect yourself by having strong alternatives in each
degree in your shop. No single supplier should hold that much
power over your business. The best thing an independent retailer
(32:39):
can do to protect themselves is to have a
diverse supplier base to avoid becoming
overly reliant on one or two key brands to
drive footfall and sales.
I having a mix of best sellers from different types of
brands, I think that it is always if a
(33:01):
category is doing really well, having a second
option within that category I think is a
good strategy. So that if something
were to happen, if that best selling brand has
any supply issues, they decide to go in a different
direction or anything like that, you have
(33:23):
something up and coming coming up behind that.
For brands, the takeaway is just as important. Love your
stockists. They are your storytellers. They're the ones who bring
your products to life in front of customers, build loyalty and create
those little moments of magic. Without them, the story loses some of
(33:47):
its soul. And if you do have to make difficult decisions, be
kind, be human and communicate in a way that is
respectful. This episode isn't just about jellycat, it's about
the wider relationship between brands and the independent shops that champion
them. There's so much that could have been done differently, with more care,
more communication and more respect. If this episode
(34:09):
resonated with you, I'd love for you to share it with a friend, a fellow
retailer, parent, or someone who loves the independent shop experience.
Because behind many best selling products, there's a network of
independent retailers who believed in it first and they deserve
to be part of the story. Thank you so much for listening. Listening. Do take
a moment to follow the podcast or
(34:30):
subscribe whatever platform that you're on and if you have a minute to rate and
review it Inside Apple Podcast, that makes all the difference. See you next week.
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