Elf on the Shelf founders discuss building a family brand and managing seasonal risk

The creators of Elf on the Shelf described how they built a family business that began with Christmas products. Early on, people had trouble understanding the product, so the founders used inexpensive blinking bracelets to attract parents’ attention at local Christmas markets. Banks were reluctant to back the idea, so the founders pooled their own resources to start the business.

They cited a paparazzi photograph of Jennifer Garner carrying Elf on the Shelf and a segment on the Today Show as early turning points. Later milestones included the animated special An Elf Story airing on CBS and the brand’s balloon appearing in Macy’s Thanksgiving Day Parade. The brand has grown from a consumer product into an entertainment and character franchise. The company has a Netflix partnership and plans to launch its preschool show Scout Elf Squad there on November 4. According to the founder, the project began on YouTube before Netflix picked it up.

The founders described the company as a family business owned by two sisters and started by their mother. They said the seasonal business requires planning, forecasting and production to start again immediately after Christmas, including for global markets: “You can’t backorder Christmas.” They said preorder campaigns had sold out and that several items, including licensed products and a 4- or 5-foot elf sold at Lowe’s, had already sold out. They also mentioned a giant inflatable elf that they estimated could be two or three stories tall.