Jellycat: “Plushing” Into New Markets
By: Abigail Shin & Harvey Zhu
The Ivey Business Review is a student publication conceived, designed and managed by Honors Business Administration students at the Ivey Business School.
Pawsitively Plush
Founded in London, UK, in 1999 by brothers Thomas and William Gatacre, Jellycat has become a global leader in the plush toy industry. It is renowned for its high-quality, whimsically designed stuffed animals and collectibles. From classic bears and bunnies to imaginative creations like smiling plants and quirky foods, Jellycat’s mission is simple: to bring joy to people of all ages. With prices ranging from $20 USD for smaller plushies to $150 USD for larger intricate designs, Jellycat has positioned itself as a premium brand in the toy market. Boasting a presence in 80 countries and revenues surpassing $250 million in 2023, Jellycat has experienced exponential growth, driven by social media buzz, collector enthusiasm, and a strategic scarcity model. Today, the brand is not just a toy manufacturer; it’s a cultural phenomenon.
Jellycat Jack’s Journey
Clicks, Picks & Fuzzy Flicks
Despite Jellycat’s long history, its recent rapid growth and popularity began during the pandemic, when there was a boom in collectible plush toy purchases. From 2020 to 2021, plush toys saw the most significant growth, up 39 percent, relative to all other segments of the toy industry. During this time, Jellycat enthusiasts shared their love of the brand through social media: posting videos on TikTok, unboxing the newest releases or pictures of their vast collections on Instagram. Since then, Jellycat’s appeal among young adults and collectors has steadily increased. The hashtag #Jellycat has over 248,000 posts on TikTok and over 847,000 on Instagram. The Reddit thread r/Jellycatplush, where people post pictures of their Jellycats, has over 50,000 members. This growth has been primarily community-driven, with Jellycat’s popularity rising through organic, user-generated content, positioning the brand at the intersection of comfort, culture, and collectibility.
Sweet Treats & Plush Seats
As part of its brand expansion, Jellycat has explored experiential retail through its Jellycat Cafes and Patisseries in major cities like New York, Paris, and Shanghai. These themed spaces offer an interactive way for customers to buy Jellycats. Visitors can enjoy their Jellycat characters being packaged excitingly: cooking a Jellycat pancake in a pan or watching their Jellycat cake being “frosted.” The concept has proven immensely popular, often drawing long wait times and serving as a shareable, immersive experience. The curated decor and exclusive merchandise further elevate the sense of scarcity and collectibility, transforming a casual visit into a social moment and brand interaction.
Rare Bears & Exclusive Hares
Another element of Jellycat’s success is that it is highly selective about its distribution channels. In major consumer markets like North America and Europe, Jellycats are not mass-market; rather, they are found in selective stationary or children’s stores. If a consumer is lucky to find one, stock is often sparse, with only select plushies in select locations. Jellycat’s scarcity creates a chase for consumers: “What is the new design? Where can I buy it? When will it sell out?” The limited-release nature and often permanent retirement of Jellycat’s items carry perceived exclusivity, enhancing their desirability as a collectible item.
Navigating a Bear-y Market
In a market filled with plush toy brands, Jellycat has carved out a unique niche that sets it apart from competitors like Steiff and Build-A-Bear. Steiff, known for its luxury plush toys and heritage appeal, targets high-end collectors with premium pricing and limited-edition releases. On the other hand, Build-A-Bear focuses on customization and interactive retail experiences, appealing primarily to younger audiences and families. Jellycat, however, strikes a balance between accessibility and premium appeal, transcending traditional toy market boundaries and positioning itself as a lifestyle brand that blends playfulness with sophistication. Its whimsical designs, exceptional product softness and storytelling resonate with a broad audience, from children to adults, without alienating either group. Additionally, this versatility allows Jellycat to differentiate itself from fads like Silly-Bandz, Shopkins or even Pokemon GO, which experienced meteoric rises but eventually lost their popularity once their novelty wore off. By maintaining this unique positioning, Jellycat stands out in a competitive market, appealing to everyday consumers and luxury-seeking collectors.
Plush, Please! How Stuffed Toys Are Snuggling into the Luxury Market
The global plush toy market is fast-growing and forecasted to expand at a CAGR of 8.2 percent from 2024 to 2030. By 2033, the total market will be valued at $24.3 billion USD. While plush toys generally cater to a younger audience, the industry has significantly shifted toward older generations. In the fourth quarter of 2024, adults spent $1.5 billion on toys for themselves, putting them ahead of purchases made for toddlers aged 3 to 5. The stuffed animal toys market segment accounted for a revenue share of 40.6 percent in 2023. Limited edition or specialty stuffed animals, often tied to specific events, holidays, or characters, attract collectors and enthusiasts, contributing to market dynamics.
The broader luxury goods market presents an attractive space for expansion, particularly as consumer behaviour shifts toward experiential and design-focused purchases. Valued at $284 billion in 2023, the global luxury goods market is projected to grow to $392.4 billion by 2030 at a CAGR of 4.7 percent. This growth can be attributed to the rising spending power of Millennials and Gen Z and a global consumer base that increasingly views premium products as expressions of identity, status, and taste. Jellycat is well-positioned to enter the luxury space through limited-edition collaborations that transform plush toys into lifestyle and design objects, aligning with the evolving expectations of luxury consumers. Luxury fashion houses such as Gucci, Louis Vuitton, and Dior have also experimented with plush collectibles, signalling a growing intersection between plush toys and the “luxury” plush market.
From Bears to Billionaires
The luxury plush segment, while niche, is expanding. These products operate at the intersection of designer home decor, personal gifting, and lifestyle collectibles, appealing to a distinct consumer segment that values aesthetic experience, premium quality, and exclusivity. A partnership with a luxury brand would target audiences that already engage with plush items not as toys but as high-end visual accents or sentimental keepsakes, namely design-conscious shoppers, high-income parents, interior decorators, and luxury gift buyers. For example, well-off parents who purchase items from Baby Dior or Gucci Kids often look for premium nursery pieces. Likewise, high-end gift buyers may view a limited-edition Jellycat as the ideal present for birthdays, anniversaries, or holidays, especially if it is tied to a recognizable designer.
As Jellycat continues to ride a wave of cultural relevance, limited-edition designer Jellycats would naturally appeal to Gen Z and collectors drawn to scarcity and social media trends. Stimulating demand like luxury streetwear drops, exclusive Jellycat releases could drive hype, resale value, and waitlists, positioning the brand as a cultural collectible and lifestyle item rather than a children’s toy. By entering this space, Jellycat would differentiate itself from the broader plush toy market and solidify its identity as a premium, design-forward brand, blending emotional appeal and elevated luxury.
Haute Fur-shion
By partnering with Dior, Jellycat can release a limited collection of Dior-themed Jellycats. Through this collaboration, they can create specialty Jellycats like bunnies with Dior-monogrammed ears, bears holding a Dior-inspired bag, or foxes with a Dior Oblique monogram scarf with unique Jellycat-Dior tags for authenticity. Balancing Jellycat’s soft textures and whimsical character designs with Dior’s romantic Parisian charm forms a partnership of “soft couture.”
For Dior, the partnership with Jellycat offers a unique opportunity to tap into new audiences and expand its brand into uncharted territory. By collaborating with Jellycat, Dior can leverage the plush toy market to connect with younger, culturally engaged consumers, particularly Millennials and Gen Z, who are drawn to playful, nostalgic, and emotionally resonant products. This collaboration allows Dior to experiment with a new product category that aligns with its reputation for luxury and craftsmanship while adding a touch of whimsy to its brand identity. Additionally, the partnership provides Dior with a fresh avenue for storytelling, as the Jellycat x Dior collection can be marketed as a blend of high fashion and heartfelt charm. By entering the world of plush toys, Dior diversifies its product portfolio and reinforces its position as a forward-thinking, innovative brand that transcends traditional fashion boundaries.
Plush Meets Prestige
Beyond Dior, there is a substantial precedent of similar partnerships between luxury and mainstream brands. In 2022, Balmain partnered with Mattel’s Barbie to create a line of doll-inspired high fashion products like logo-patched denim jackets, knit leggings and ready-to-wear accessories. All products were infused with Barbie pink and Balmain’s distinctive designs. The entire collection was initially available on balmain.com and sold at places like Selfridges and Holt Renfrew. After launching this collection, many pieces sold out instantly due to limited quantities. Similar to Barbie’s nostalgic feel, a partnership with Jellycat and Dior could transform these limited-edition Jellycats into “must-have” items while reinforcing Dior as culturally relevant.
Taking Cuddles to the Catwalk
To launch this limited collection, Jellycat and Dior should debut the collaboration during Paris Fashion Week, unveiling Jellycat’s whimsical characters in Dior’s signature fabrics and silhouettes. This famous week has long served as a platform for brands to showcase innovative cross-brand partnerships, such as Vans x Valentino, Balenciaga x Puma, and Louis Vuitton x Kenzo, making it a fitting and culturally relevant stage for a Jellycat x Dior debut.
Jellycat can be integrated seamlessly into Dior’s runway presentation. For example, select models could carry plushies as styling accessories attached to bags, similar to how Chanel has styled stuffed animal bags. Immediately following the show, the collection should be dropped in limited quantities, following a luxury drop model emphasizing scarcity and collectibility. Each plush would be individually numbered, packaged in a Dior collector box, and accompanied by an authenticity certificate and co-branded Jellycat x Dior tag. Depending on size and detail, prices should range from $250 to $600 USD. This positions the plushies as luxury statement pieces rather than just as toys, and is also a markup from its original price point.
Snags in the Stitch: Staying Seamless Under Pressure
Although the Jellycat x Dior partnership offers strong strategic and creative alignments, brand dilution is a primary concern. Entering the luxury space may risk alienating core fans if perceived as overly commercial or off-brand. To mitigate this, Jellycat can maintain its identity by ensuring the collaboration stays true to its core values of providing a whimsy experience for enthusiasts within the luxury content. For instance, in-person sales would be exclusive to Jellycat’s Paris Patisserie and Café Dior, adding a physical, experiential layer to the release and further amplifying the collection’s social media virality and luxury positioning. Additionally, Jellycat could emphasize storytelling around the collaboration, highlighting how the partnership celebrates joy, creativity and universal love for comfort. By framing the collection as an extension of Jellycat’s mission to bring happiness, rather than depart from it, the brand can preserve its identity while exploring new creative horizons.
Fur-Ever Chic!
After the success of limited-edition releases, Jellycat should consider collaborating with Dior to create a more permanent line of luxury plush toys. While the exclusivity of limited editions drives hype and collectability, a permanent collection would allow Jellycat to solidify its presence in the luxury market and cater to a broader audience. This line could feature timeless designs that blend Jellycat’s signature whimsy with Dior’s iconic aesthetic, such as plush bunnies with subtle monogrammed details or bears adorned with Dior-inspired accessories.
By offering a permanent collection, Jellycat can maintain the emotional connection and accessibility that defines the brand while expanding its appeal to luxury customers. This move would strengthen Jellycat’s partnership with Dior and establish the brand as a luxury lifestyle brand, laying a foundation for long-term relevance and growth.
