Elf on the Shelf founders describe how a family tradition became a business and a Santaverse

A co-founder of the Lumistella Company said that in 2004 she and her mother wrote a story based on a family tradition: at Christmas, an elf watched the children during the day, reported to Santa at night, and was searched for by the family the next morning. Around 2005, after having children of her own, she suggested to her mother that they write a book about the elf. They could not find a publisher, so the family chose to pursue the idea themselves. The co-founder said the business is now 21 years old and has grown from the original story into a Santaverse and a broader storytelling world.

The company began at local Christmas markets. Because shoppers could not readily understand the unfamiliar concept without an explanation, the founders spoke with them one at a time and used small-scale marketing tactics. For example, they handed out inexpensive blinking bracelets to catch parents’ attention and give them an opportunity to explain the product.

The co-founder described the business as diversified, spanning licensing, partnerships, and consumer products. She said Beaches had been the brand’s official Caribbean destination for several years. This year, the company announced an inbound licensing program and named Disney Princesses, Mickey and Friends, Spider-Man, Olaf from Frozen, and Harry Potter among its partners and franchises. She said the licenses can support festive stories in which the elf appears as a character a family loves.