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Pandemic pivot: Lollicup USA becomes supplier of masks

 


By Daisy Lin

April 27, 2020

Many companies, whether large corporations or small and medium-sized enterprises, are pivoting to meet the needs of the pandemic and serve their customers. (Photo credit): Karat by Lollicup

How Small Businesses are Reworking Business Models to Meet Pandemic Needs and Build Confidence

The COVID-19 epidemic has changed the business landscape. A new survey of the majority of small businesses shows that one in three small businesses in the United States has closed, and 40% have laid off workers permanently. Stock markets have plunged around the world, and the ability of business leaders to quickly create creative pivots can make the difference between sinking and swimming.

Large retailers like Nike and Gap have changed production to make masks; cosmetics companies like LOral and Este Lauder have turned their facilities into production sites for hand sanitizers, while automakers have renovated factories to produce fans.

These types of conversions are beneficial, says Laura Beken, business consultant at SBDC Tech, who advises entrepreneurs and tech startups on strategy and innovation. You help others and at the same time make you aware of your own business.

Likewise, small and medium-sized businesses also rotate to meet pandemic needs, serve customers and enter new industries.

Lollicup USA CEO Alan Yu is no stranger to pivots. His California-based business started as a single boba store, grew into a chain of boba stores, diversified into wholesaling boba ingredients, and then expanded to making mugs. and packaging for restaurants across the country. Now he has added another role: mask supplier.

You have to be a one-stop shop, said Yu. Right now, my thinking is to get out as many masks as possible and help as many people as possible.

To anticipate

When COVID-19 hit China in January, Yu explored the possibility of making masks from its factories, but could not find the appropriate raw materials. Then the virus spread to the United States and immediately started working with reopened Chinese factories to produce and import masks.

We have stocks every day from China. Then we ship it immediately. Our policy is within 72 hours, 24 hours a day, says Yu.

In the past few weeks, Lollicup USA has shipped over 5 million masks. Right now, air freight was used to import masks, but once sea freight starts coming in, much more, the price goes down, says Yu. We want to lower the price so that others can’t not assess the gouge.

Right now, my thinking is to bring out as many masks as possible and help as many people as possible.

Alan Alan

(Photo credit): Karat by Lollicup

Not only is it able to provide masks at a reasonable cost to equip restaurants, hospitals and workers in a multitude of industries, but it also provides masks to emergency responders.

We were going to donate 10,000 masks to the Chino City Police and Fire Department because they could not find masks, said Yu.

Strategic customer awareness and building trust

When pivoting, keep in mind that one of the areas that is important to business owners right now is building trust with customers, according to Laura Bechard, who heads ProVision Business Advisors. Companies competing for prices will find that customers are more concerned with trust and security. Make sure your marketing messages and communications are built on trust and security.

Julienne Fine Food and Celebrations in San Marino, California, transformed her restaurant and food market into a local grocery store serving the local community. In addition to the ready meals, they stocked the shelves with eggs, flour, products, even toilet paper. In addition, owner Julie Campoy posts updates on social media regarding restaurant safety measures, staggering staff hours and spacing kitchen workstations 7-10 feet apart. adapt to both food production and security.

I open the door, everyday, all day, allowing only two people at a time for proper social distancing, says Campoy.

Julienne Fine Food and Celebrations

When pivoting, keep in mind that one of the areas that is important to business owners right now is building trust with customers.

Beken also suggests using this time to build relationships and do strategic public relations and client relationships. For example, the drone company Sensofly has started offering free drone services to businesses and public agencies in southern California affected by COVID-19.

One of my good friends is an inspector, and using drones would be great for having lots of roof photos, so there is one less person to interact with to go there, says Han John Tse, founder of Sensofly. For real estate agents, you can search for a location and for virtual tours, you can have an overview of what the neighborhood looks like.

(Photo credit): Gettyimages.com/Westend61

You currently have a window of opportunity to reach customers you couldn’t reach before, says Beken. There will be customer segments who will be ready to speak to you, whereas before they would not open the door.

For more tips, check out our business continuity toolbox with the latest resources on how to deal with the pandemic.

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