The Elf on the Shelf Founders on Evolving From a Beloved Holiday Business to Multimedia, Year-Round Brand Expansion 

Why it matters: 

• From its beginnings selling in small Southern holiday markets, The Elf of the Shelf picture book and companion toy is now a fixture at major retailers from Target to Nordstrom, with over 30 million Scout Elves, elf pets, and elf mates adopted worldwide.
• As the company turns 20, Founders and twin sisters Chanda Bell and Christa Pitts have embarked on a new strategic mission to expand its reach from a holiday tradition into a year-round entertainment and lifestyle brand.
• The Elf on the Shelf’s partnerships with big brands like Hershey and Sandal’s Beaches Resorts reflect a major driver of that growth.

Two decades ago, twin sisters Chanda Bell and Christa Pitts pitched a picture book inspired by their family’s Christmastime elf tradition—and every major book publisher passed. So, along with their mother, Carol Aebersold, they self-published “The Elf on the Shelf,” packaging it with a red-suited elf doll they made that flies to the North Pole every night to tell Santa who’s been naughty or nice. They started selling at small holiday fairs.

In the years that followed, The Elf on the Shelf became a beloved holiday tradition in households worldwide. Under its parent organization, The Lumistella Company, the business has expanded its product line far beyond its original book and doll set to a wide array of holiday-themed products: elf clothes and accessories; pets for your elf; and merchandise like blankets, toys, stuffed animals, games, and Netflix movies. Families across 29 countries have adopted over 30 million Scout Elves, elf pets, and elf mates sold by major retailers like Target, as the company has leaned in to partnerships with major brands.

“Our growth trajectory has been spiking year-over-year for a decade,” said The Elf on the Shelf Co-founder and Co-CEO Christa Pitts.

Now, upon its 20th anniversary, The Elf on the Shelf is forging ahead with a multimedia brand expansion that’s fueled by new products, immersive experiences, and strategic partnerships.

The sisters pooled personal savings, took on debt, and invested everything to produce their first 5,000 dolls

The elf tradition started in Bell and Pitts’ mother’s childhood home, when a small pixie elf would appear in the Christmas tree every December. The tradition continued into Bell and Pitts’ own childhood.

“Our grandmother planted the seed that the elf was more than just a decoration,” Pitts said. “Chanda and I never knew a Christmas season without our elf, Fisbee. We weren’t allowed to touch him, because he could lose his magic. Ultimately, that idea became the lore of The Elf on the Shelf.”

Bell had her first child and was working part-time for her father’s engineering and fabrication firm, doing everything from bookkeeping to processing orders, to supplement her football coach and special education teacher husband’s income. That’s when, with Aebersold, she wrote the children’s book manuscript based on the family’s tradition. One agent out of dozens responded with an offer of representation but couldn’t sell the book. 

“Publishers weren’t interested at all in this idea of an elf that talked to Santa, and a storybook written by two people that no one in the industry knew,” Pitts said.

So Bell found a watercolor artist in their hometown of Marietta, Georgia, to work with, and she and Pitts and Aebersold began to brainstorm ideas for the accompanying doll. Pitts sold her house and put some of the profits toward launching the business. Bell took on credit card debt, and their parents cashed in their 401(k).

“Then, together, we were able to afford our first 5,000 pieces,” Pitts said. “It was the minimum order you could make, and that’s how we got started. I definitely had a vision that this could be a successful company.”

A chance celebrity brand boost, national media coverage, and strategic partnerships propel The Elf on the Shelf from small business to global brand

With product in-hand, the sisters’ first task was to introduce prospective customers to their somewhat-quirky-at-the-time creation. They held a book signing for friends and family and started selling their book and doll bundle at small holiday markets and fairs across Georgia and North Carolina. 

“Back then, there was really no frame of reference for The Elf on the Shelf. No one understood it, so we had to talk to people and have them get what this was,” Pitts said.

A big break came two years later in 2007 when Actor Jennifer Garner was photographed walking down a street carrying The Elf on the Shelf. “No one knows how she got it,” said Pitts. “We still don’t know to this day.” The photo changed the trajectory of the company. Would-be customers flooded the business with calls.

Soon after, a Texas company selling The Elf on the Shelf products was featured on the local news for its booming sales. The Today Show picked up the segment, propelling The Elf on the Shelf firmly into the national spotlight. Social media acted as an accelerator. 

Over the years, the sisters have found success by leaning in to their individual strengths. Pitts focuses more on business operations, while Bell is the company’s creative lead. Pursuing partnerships with brands like Netflix has been a major driver of growth, too. The brand has a studio deal with Netflix for preschool programming, live-action projects, and a major motion picture. The streaming service has also licensed four additional animated specials. Partnerships are a strategy The Elf on the Shelf is ramping up as it marks its 20th anniversary. 

[Read more: 5 Must-Know Retail Trends for the 2025 Holiday Season]

Expanding the brand beyond a holiday tradition to create joyful family moments year-round

Ahead of The Elf on a Shelf’s 20th anniversary, Bell and Pitts introduced a new mission, vision, and value statement to evolve their company from a holiday tradition into a year-round entertainment and lifestyle brand, broadening its global reach with a clear purpose: to create joyful family moments.

To that end, they introduced the Santaverse—a concept that marks the business’s push to grow beyond one flagship product into a broader, more immersive wintertime world. It’s designed to carry The Elf on the Shelf into the future by attracting new fans while deepening connections with existing ones. 

“It’s the entire universe of our North Pole characters, and includes new characters that are yet to be discovered,” Pitts said. Characters like Razzle the Celebration Snowman (a plush snowman with his own book) are also designed to appeal to an audience beyond those who celebrate just Christmas, and to be enjoyed year-round. 

Most recently in conjunction with the company’s 20th year, The Elf on the Shelf released a new book, “The Rise of Nicholas the Noble.” Published in partnership with HarperCollins and written by Bell, the novel for kids tells Santa Claus’ origin story. The brand also partnered with Outright Games to launch of The Elf on the Shelf: Christmas Heroes console video game, marking its move into the gaming industry. 

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Courting new customers via collaborations with brands from Hershey’s to Sandals’ Beaches Resorts 

The Elf on the Shelf is hoping that new partnerships will pull in new customers, too.

“We’re continuing to expand partnerships as well,” said Pitts. “They’re a great way to continue building the company.”

For example, this year, the brand is partnering with The Hershey Company on a special edition pack of Hershey’s Kisses for Target, with Flipz pretzels on The Elf on the Shelf sweet-and-salty pretzel packs, and with Basic Fun! (leaning into nostalgia) to create a custom Lite-Brite, inspired by how Scout Elves often leave messages for their families. 

“We are constantly approached by potential partners,” Pitts said, “and we focus on working with those where there’s a natural synergy and organic DNA match between the brands,” including a shared belief in the magic of the season and a clear mission to stoke family joy. That’s when “conversations flow easily, creative ideas build naturally, and the partnership comes together seamlessly,” she said.

The Elf on the Shelf’s partnerships aren’t limited to products—they’re about creating memorable experiences, too, Pitts said. At Sandals’ Beaches Resorts, families can access an in-room VIE (Very Important Elf) butler service, and starting this year, stay in a Christmas in the Caribbean suite.

In addition to partnerships and collaborations, the company is also leaning in to the trends of customization and “kidulting.” In today’s hyper-connected world, Pitts said, customers of all ages expect products and experiences that reflect their unique interests and lifestyles, hence new products like its Polar Props 24-Day Elf Kits and the Claus Couture Collection, which allow families to personalize their Santaverse characters. Meanwhile, customers who grew up with The Elf on the Shelf are bringing elves into their dorm rooms, apartments, classrooms, and offices.

Pitts said that, over the years, success has taken “thoughtful moves, a lot of guts, a lot of hard work, and some amazing hires along the way.” To fellow entrepreneurs, she advised, “you have to trust your gut, you have to focus, because you can’t be everything to everyone, and you have to hire for where you’re going, not for where you are.”

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