Publication Date
Spring 3-22-2026
Presentation Length
15 minutes
College
Jack C. Massey College of Business
Department
Economics and Finance
Student Level
Undergraduate
Faculty Mentor
Dr. Colin Cannonier
Metadata/Fulltext
Fulltext
Presentation Type
Talk/Oral
Summary
Jellycat is a London-based toy company established in 1999 that gained traction during the pandemic as a result of a viral social media craze driven by nostalgia and renewed focus on mental well-being among adults and Generation Z in particular. Jellycat toys became an international sensation–sold in 77 countries worldwide with majority of sales from the United States, China, EU, and the UK (Jellycat, n.d.). Their plush toys are produced primarily in China and Vietnam (Jellycat, n.d.). This unanticipated social media trend caused a spike in demand that the company struggled to match as supply was constrained due to recent global tariffs between the U.S. and China. The global tariff war set off by Trump negatively impacted Jellycat by increasing trade barriers, raising production costs, and significantly slowing down the international supply chain–leaving Jellycat with a massive shortage (Erdly, 2025). As a result, Jellycat pulled back from 100 independent stores in the UK (Dean, 2025). The firm received backlash from small business owners who abruptly stopped receiving Jellycat toys after the firm was forced to reallocate and consolidate inventory. After analyzing cost and production theory, market structure, industry trends, and economic implications of recent global events, I propose three strategies for Jellycat to mitigate risks and more effectively respond to demand and supply chain volatility. Jellycat should hire a Gen Z marketer and launch a Custom Studio to cater to a generation that values being a part of the creative process and flaunting their unique styles, invest in AI integration tools to quickly adapt to changes in demand, and as toy sales rise in the U.S. market, reduce time and production costs by nearshoring manufacturing to Mexico.
Recommended Citation
Heckmann, Ava, "How British Toy Company Jellycat Should Manage Demand and Supply-Chain Volatility in an Uncertain Economic Landscape" (2026). SPARK Symposium Presentations. 1065.
https://repository.belmont.edu/spark_presentations/1065
