Business Movers: An Elf-Made Success | How the Elf On The Shelf Found a Place at Christmas | Episode 1 Summary

Release Date: December 26, 2024
Host: Lindsey Graham
Produced by Wondery

Introduction

In the inaugural episode of Business Movers, Wondery introduces listeners to the remarkable journey of Elf on the Shelf, transforming a simple family tradition into a global Christmas phenomenon. Hosted by Lindsay Graham, this episode delves into the perseverance, creativity, and strategic decisions that propelled Shanda Bell and her mother, Carol Aebersolt, to success despite initial setbacks.

The Birth of an Idea

Setting the Scene (00:00 - 05:30)
The story begins in spring 2005 in Loganville, Georgia, where Shanda Bell and her mother, Carol Aebersolt, crafted a Christmas story titled The Elf on the Shelf. Despite their enthusiasm, major publishers like Random House and Scholastic passed on their manuscript, citing market saturation and doubts about the elf concept's uniqueness.

Shanda Bell (04:45): "Between Lord of the Rings and Harry Potter, I guess it's not a great time for elves. But our stories for families, for five and six-year-olds, it's a totally different market."

Overcoming Rejections and Self-Publishing

Determined to Succeed (06:00 - 15:00)
Undeterred by repeated rejections, Shanda and Carol decided to self-publish their book. In 2005, they founded Creatively Classic Activities and Books, investing personal savings and credit to fund their venture. The duo collaborated with local artist Coe Steinmark to illustrate the book, ensuring a nostalgic and high-quality visual appeal.

Carol Aebersolt (10:20): "We wanted something more traditional. Coe's illustrations brought a nostalgic feel, making it seem like the story had been rediscovered from decades earlier."

Introducing the Scout Elf (12:15)
To complement the book, they included an 8-inch elf doll inspired by Carol's childhood tradition. This combination aimed to create an interactive experience for children, turning the countdown to Christmas into a daily game of hide and seek.

Launching and Initial Sales Efforts

First Launch and Early Sales (16:00 - 20:30)
In September 2005, they launched The Elf on the Shelf at the local Museum of History in Marietta, Georgia, selling 500 copies on the first night. Realizing the need to expand beyond personal networks, Shanda, Carol, and Shanda's twin sister, Christa Pitts, embarked on a rigorous direct-to-consumer sales strategy, attending Christmas-themed shops, small bookstores, and trade shows.

Krista Pitts (18:05): "Our goal was to get the Elf on the Shelf into as many hands as possible. It was exhausting, but we believed in our product."

Breakthrough and National Recognition

Celebrity Endorsement and Explosive Growth (25:00 - 35:00)
The turning point came in December 2007 when actress Jennifer Garner was photographed holding The Elf on the Shelf. This unexpected celebrity endorsement caused their website to crash due to overwhelming traffic and sales surged exponentially. Subsequently, they secured a deal with Barnes & Noble, making their book available in 8,000 stores nationwide.

Shanda Bell (30:45): "Seeing our book on Barnes & Noble shelves was surreal. It validated all the hard work we put into this project."

By 2009, The Elf on the Shelf had sold nearly a million copies, generating revenues of $7 million, and continued to grow by almost 50% the following year.

Expanding the Brand and Facing Challenges

Diversification and Further Success (36:00 - 45:00)
To sustain growth and prevent The Elf on the Shelf from becoming a fleeting trend, the team expanded their product line. This included Christmas-themed coloring books, accessories, and the introduction of Elf Pets—stuffed animals associated with the Scout Elf tradition.

Christa Pitts (40:10): "We realized that to maintain momentum, we needed to innovate and offer more to our consumers. The Elf Pets were a natural extension of our brand."

In 2010, they produced a half-hour animated TV special, An Elf Story, which premiered on CBS to approximately four million viewers. This further solidified their presence in popular culture.

Criticism and Resilience (46:00 - 55:00)
Despite their success, The Elf on the Shelf faced criticism. In November 2012, a news segment labeled the elf as promoting a "surveillance state," accusing it of encouraging parental oversight akin to secret policing.

Shanda Bell (52:30): "It's just a bit of fun. Our goal was to create joyful traditions, not to instill fear or control."

The backlash, however, did not deter them. Instead, Shanda saw it as a sign of the brand's significant impact and continued to focus on expanding their Christmas-centric offerings.

Global Expansion and Strategic Shifts

International Reach and Strategic Evolution (56:00 - 1:10:00)
By 2021, Lumastella (formerly Creatively Classic Activities and Books) had sold over 19 million Scout Elves globally, establishing partnerships with giants like Netflix and Kellogg’s. The company transitioned from a publishing house to an entertainment and merchandising powerhouse, creating an in-house animation studio to produce new Christmas films and TV shows.

Carol Aebersolt (1:05:15): "We wanted to turn our tradition into an entertainment experience that families around the world could enjoy together."

Conclusion

The Elf on the Shelf exemplifies how unwavering belief in a creative idea, coupled with strategic expansion and adaptability, can transform a modest family tradition into a multi-million dollar enterprise. Shanda Bell, Carol Aebersolt, and Christa Pitts demonstrated resilience against industry gatekeepers, leveraged unexpected endorsements, and continuously innovated to maintain their brand's relevance and cultural significance.

Teaser for Next Episode

In the next episode of Business Movers, Neil Hoffman explores how he was inspired by The Elf on the Shelf to create his own version, Mensch on a Bench, and examines how its business model echoes the original's success.

Notable Quotes:

• Shanda Bell (04:45): "Between Lord of the Rings and Harry Potter, I guess it's not a great time for elves."
• Carol Aebersolt (10:20): "We wanted something more traditional..."
• Krista Pitts (18:05): "Our goal was to get the Elf on the Shelf into as many hands as possible."
• Shanda Bell (30:45): "Seeing our book on Barnes & Noble shelves was surreal."
• Christa Pitts (40:10): "We needed to innovate and offer more to our consumers."
• Shanda Bell (52:30): "It's just a bit of fun. Our goal was to create joyful traditions."

Additional Recommendations

For listeners interested in the traditions and commercialization of Christmas, consider reading:

• Christmas Past, the Fascinating Stories Behind Our Favorite Holiday Traditions by Brian Earle
• The Battle for the Cultural History of America's Most Cherished Holiday by Stephen Nissenbaum

Business Movers is produced by Wondery, with writing and research by Joe Garra, executive production by William Simpson, Narino Flaherty, Jenny Lauer Beckman, and Marshall Louie, and sound design by Matthew Filler. Subscribe to Wondery for ad-free listening and exclusive content.