Analysing the Phenomenal Success of Jellycat in the Chinese Market

Name: Analysing the Phenomenal Success of Jellycat in the Chinese Market
Uploaded: 2025-05-02T18:00:00+02:00
Channel: Kathryn
Description: Jellycat, a high-end gift brand founded in London in 1999, has become synonymous with "the world's softest comfort toys". Since 2013, Jellycat in the Chinese market has become a cult brand beloved by children and adults alike. Initially focused on creating the "cosiest and cutest stuffies" for

Jellycat, a high-end gift brand founded in London in 1999, has become synonymous with “the world’s softest comfort toys”. Since 2013, Jellycat in the Chinese market has become a cult brand beloved by children and adults alike.

Initially focused on creating the “cosiest and cutest stuffies” for babies, Jellycat has seen a surge in popularity in recent years, especially among young adults in China. I want to explore the various factors that have contributed to this remarkable success, from its initial entry into the Chinese market to its current status as a cultural phenomenon.

The Early Days in China – Entering new markets is tough

Jellycat’s journey in China began in 2013 when they entered the domestic market. The brand then launched its Tmall International Flagship Store in 2015, recognising the importance of online shopping for Chinese consumers. However, early sales were slow, leading to a crucial re-evaluation of their target audience. Web2Asia, their Tmall partner, played a key role in this shift, advising Jellycat to move from targeting children to women aged 25 and older. This pivot proved to be a game-changer for the success of Jellycat in the Chinese market. Entering new markets is never easy and truly understanding the customers’ emotional needs is a key to selling successfully in China.

They also adopted a playful storytelling approach, embracing UK culture in their marketing. This included using the royal family as a theme and launching a new animal each year based on the Chinese zodiac. In 2017, Alibaba produced a case study video on Jellycat’s success on Tmall Global, where it was said that the brand had achieved the number one position in the entire Alibaba Tmall and Taobao plush toy category.

Emotional Marketing: Driving Brand Loyalty and Sales

Jellycat’s phenomenal success in the Chinese market can largely be attributed to its strategic use of emotional marketing. The brand has effectively tapped into the rising concerns of stress and loneliness, particularly among younger generations, positioning its plush toys as more than mere playthings. Jellycat’s products are marketed as “emotional companions,” offering not just a source of comfort, but also a form of emotional support in a society where mental health challenges are becoming more widely recognised. As one Chinese consumer aptly put it: “For us, it’s not just a plush toy – it’s a companion, a source of comfort in stressful times.”

A recent McKinsey survey revealed that 64% of Chinese consumers now prioritize emotional consumption, with the percentage skewing higher among younger demographics. For the first time ever, mental health is starting to be discussed openly, and Jellycat is a brand that resonates deeply with customers.

Jellycat has managed to forge a deep emotional connection with its customers through several key strategies:

Unique Product Design

Jellycat’s plush toys are instantly recognisable, thanks to their ultra-soft textures, calming colour palettes, and whimsical designs. They carefully crafted to provide tactile comfort, making them more than just visually appealing. For many (children and young adults alike), the act of holding or hugging a Jellycat toy becomes a source of physical reassurance, reinforcing the emotional bond.

“Fantasy Partners”

By giving each toy a name, personality, and unique backstory, Jellycat effectively elevates its products beyond simple objects. This storytelling approach encourages consumers to see their toys as “fantasy partners” – almost like friends – that provide companionship and a sense of belonging. These personal connections foster deeper emotional attachments, as consumers engage with these stories on a more intimate level.

Social Sharing and Community Building

Jellycat has excelled at creating a community around its brand, one that thrives on social media. Consumers are encouraged to share their interactions with their toys, posting images and stories about their Jellycat companions, and the xiaohongshu vibe is the perfect place for this. This sense of community not only strengthens the brand’s emotional appeal but also creates a space where customers can feel understood and supported, reinforcing the idea that their toys are a source of comfort and joy.

Healing Properties

With rising levels of stress and uncertainty, particularly among young adults in China since the pandemic, Jellycat’s toys have become a symbol of emotional healing. Similar to the calming effect a pacifier has on a baby, Jellycat toys offer a sense of security and stability. They provide a small yet meaningful way to cope with the stresses of daily life, giving customers a comforting escape from their fast-paced, pressure-filled routines.

This has become more prevalent since the pandemic, but before that young women (especially) were also likely to have “cute things” publicly on display. eg Hello Kitty items on a desk, or cartoon characters as small plushies on a handbag.

Narrative storytelling is a key part of the success of Jellycat in the Chinese market — Photo credit: Jellycat

Case Study: Shanghai Pop Up in Autumn 2024

The Jellycat pop-up café in Shanghai, which opened in late September, was a key part of the brand’s recent successful marketing strategy in China. The café was designed to resemble a pastel-toned bakery, creating a whimsical, fairy tale-like environment.

The pop-up café was designed to be more than just a place to buy toys; it aimed to offer a lifestyle experience with the delight of the purchase ritual firmly in the foreground. Staff, including influencers, dressed as baristas and bakers, to immerse visitors in the theme.

Celebrity Endorsement: The promotion featured Song Yuqi, a Beijing-born member of the K-pop group (G)I-DLE, who posed as a café staff member for a day. This created a “fan frenzy” which significantly boosted the event’s popularity.

Source: Song Yuqi from (G)I-DLE charms fans while playing pretend as staff at Jellycat’s Shanghai pop-up café. Image via 桃子🍑.

Emotional Connection: The café was a space where adults could interact with the toys in imaginative ways, reinforcing the emotional connection that many feel with Jellycat products. Visitors shared stories on social media about how the toys serve as emotional companions and sources of comfort. One netizen stated, “Jellycat uses emotional value to capture the hearts of the public. For consumers, it is not just a plush toy, but also a companion and a source of comfort!“

Jellycat has … created a theatrical ritual that delights customers when they buy it. One example is when someone chooses a Bartholomew Bear ‘Cupcake’:
The café worker sanitizes her hands, greets the bear, grooms it, and gives it a pretend “spa session.” Using a cream gun (with no cream), she asks customers how much “cream” they’d like on the bear’s cupcake. The bear is then packed with a badge and stickers, along with a reminder to “feed it its favourite cupcake”.
China Skinny

Nostalgia Marketing: The campaign effectively tapped into the nostalgia of adults, creating a craze for plush toys among grown-ups, by blending “childhood comfort and modern experiences”

selling successfully in China, or entering new markets anywhere, means adapting your marketing to suit the locality — Source: Elle China

This pop-up event was a marketing win for Jellycat & further transformed the brand image from that of a simple plush toy into a cultural phenomenon, showing that nostalgia is effective when cleverly marketed to adults. Other plush toy companies, such as Tuntunzai Bakery, have also adopted similar marketing strategies with their own themes. Jellycat’s pop-up cafe was also part of a 25th anniversary tour for the brand that visited London, New York, and Paris, making it a global phenomenon.

The Role of Design in the Success of Jellycat in the Chinese market

Design is central to Jellycat’s marketing success. Rather than making toys that are simply replicas of real animals, Jellycat’s designs are anthropomorphic and unique. The brand’s Amuseable series features an array of creatively designed food, plants, and other objects with distinctive “bean eyes,” which have become an iconic symbol of the brand. This approach adds a playful and imaginative element to the toys. Consumers are encouraged to interact with their toys, fostering creativity, imagination and a sense of happiness. The design is meant to appeal to adults as much as to children, making Jellycat a “gift brand for all ages”.

Pricing and Distribution Strategies

Jellycat has adopted a high-end pricing strategy, positioning its products as premium gifts. While some may find the prices to be expensive, Jellycat has successfully communicated that its products are worth the cost. This is partly due to the quality of the materials used, and also because the products are seen as more than just toys, and can also be viewed as “emotional sustenance”.

Jellycat employs a multi-channel distribution strategy combining online and offline sales.

Online Presence: The brand utilizes its official website, along with e-commerce platforms like Tmall and JD.com, to provide convenient online shopping.
Offline Stores: Physical stores are typically located in high-end shopping malls, targeting customers with higher spending levels.
Global Network: The brand has also established a global distribution network to reach a broader market so Chinese consumers are also able to buy when they are travelling outside China.

While the location of stores does not greatly affect customers’ desire to purchase, having more physical locations does increase their sales and brand visibility.

Selling Successfully in China by Leveraging Occasions

Jellycat is adept at leveraging specific occasions, particularly holidays and festivals, to drive sales be that Christmas or Valentine’s Day. In China, they launch a new animal each year based on the Chinese zodiac, and also create exclusive products for locations like Shanghai. This strategic approach creates a sense of urgency and exclusivity, further fueling consumer demand. This is also seen in the release of a “Year of the Snake” collection for the 2025 Lunar New Year – I find this a really fun and clever way to combine culture with the products.

Maintaining Success in Economic Downturns

Despite global economic challenges, Jellycat has seen continued growth and maintained a strong financial performance. In 2022, their revenue increased by 72% year-on-year, and net profits rose by 83%. This can be attributed to several factors:

Emotional Value: In uncertain times, consumers tend to gravitate towards products that offer comfort and emotional support.
Brand Loyalty: Jellycat has built a strong base of loyal consumers, who are willing to invest in the brand despite economic pressures.
Effective Marketing: The brand’s strategy of mixing emotional and hunger marketing and diversified marketing channels has enabled it to maintain relevance and desirability.

Key Considerations for Brands Seeking to Replicate Jellycat’s Success in China

Brands looking to emulate Jellycat’s success in China should consider the following:

Genuine Emotional Connection

Focus on creating products that genuinely resonate with consumers’ emotional needs, not just on design or marketing gimmicks. This is more true in 2025 than ever!

Truly Understanding the Target Audience

Conduct thorough market research to identify the specific needs and desires of Chinese consumers. Tastes are different to the UK or Germany and just having a strong brand isn’t enough.

Quality and Design

Prioritise high-quality materials and unique designs that set you apart from competitors, and create a memorable brand image. Chinese consumers want value for money – that doesn’t mean they are not willing to pay high prices for a premium product but you have to be able to clearly communicate the value of what you offer.

An Omnichannel Strategy

Utilise both online and offline channels to reach a wider audience. This is essential these days in China and remember that Chinese consumers often require significantly more touchpoints than their European or American equivalents.

Social Media Engagement

Engage with consumers on social media platforms and foster a sense of community. Don’t forget to leverage suitable influencers, but remember that this can be a poisoned chalice in China if your KOL gets into any hot water for their personal life…

Strategic Scarcity

If employing hunger marketing tactics, do so strategically to create hype without alienating potential customers. Whatever you do, don’t over-supply the market with products as that will be perceived as you having a problem to sell.

Cultural Relevance

Localise your marketing strategies and products to resonate with Chinese culture. This is a really fine line to walk as you can’t afford to appear patronising. Invest the money to get professional advice on this point, unless you are prepared to risk the whole market.

From unknown brand to cult status

With these strategies, Jellycat has built a strong emotional connection with its Chinese consumers, transforming its plush toys from just another plushie (in the market which produces most of the world’s toys) into essential emotional companions. In a market where consumer well-being and personal connections are becoming increasingly valued, this approach has propelled Jellycat’s sales upwards and cemented its position as a beloved brand among Chinese shoppers.

The success of Jellycat in the Chinese market is a testament to the power of emotional connection, creative design, and effective marketing strategies. The brand has not only captured the hearts of consumers but has also provided a valuable example for other foreign brands seeking success in a competitive market. Jellycat’s focus on emotional value, coupled with its strategic approach to product design, pricing, and distribution, has solidified its position as a leader in the soft toy industry in China.

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