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Friday, February 16, 2007

Jelly Vs. Plush


Customers who have been shopping with us since we opened our first store in October of 2005 will notice that we have been shifting our product focus lately from liquid-filled jelly novelty items to plush pillow toys.

We believe we owe our loyal customers an explanation for this and so here now are the reasons behind our move:

1. Pricing - while we loved Jelly for how unique it was, we were worried about increasing costs for the product which the factories pressuring hard for. worrying about money meant less room for innovation and value creation for our customers. we didn't want to compromise.

2. Small Niche - we have a group of loyal customers who share our love for Jelly but because of the price, we believe that a lot of people who wanted the product could not access it. we could not keep product variety as fresh as we wanted and we foresaw that we would have difficulty raising our hard working employees' wages in the future at the pace we were running on. in the end, we decided that a change was needed to keep product development constant, business expansion sustainable and employees properly rewarded.

3. Variety Limitations - it's then logical to ask: well, why not just sell both jelly items and plush toys? we really wanted to but here's the thing: because we're so young (and thus low on budget haha), most of our store outlets come in the form of humble little kiosks and carts. mall regulations state that we can only display one item category to sell. we had to choose.

Now we'd like to know what you guys think? Do you think we made the right move?

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