While many businesses have struggled during the COVID-19 pandemic, some small businesses have unexpectedly flourished. Cleaning product company Cleancult and bidet company Tushy have seen major increases in sales as people stock up. Video conferencing platforms like Zoom have also grown rapidly. However, many businesses face challenges in keeping up with demand due to supply chain issues. Some owners feel conflicted about profiting during a crisis but are also glad to help customers and keep workers employed.
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1. 4/20/2020 Some small businesses are flourishing during the COVID-19 pandemic - Marketplace
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Some small businesses are flourishing during the COVID-19
pandemic
Nina Roberts Mar 25, 2020
Nina Roberts
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Nearly all businesses in the U.S. have been touched, and in some cases, decimated, by COVID-19.
The airline industry says it will be bankrupt without a federal bailout; restaurants, salons and
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retailers â chains and individually-owned â are hemorrhaging, leaving countless hourly workers
unemployed.
But surprisingly, some companies have seen soaring growth due to COVID-19. The publicly traded
video conferencing platform Zoom, now part of the countryâs collective lexicon, has seen its stock
rise, as have delivery services as most Americans try to âshelter in place.â Large companies like pet
supplier Chewy, meal kit company Blue Apron, as well as smaller businesses and startups have
been blindsided by surging sales over the past several weeks as COVID-19 and increased
containment restrictions turned worlds upside down.
âWe didnât see it coming,â said Ryan Lupberger, the co-founder of Cleancult, a venture-backed
startup that manufactures natural cleaning products in zero waste packaging.
âPeople are just not finding cleaning products in stores,â said Lupberger in New York City, where
half of the 15-person team is working remotely, the other half is in San Juan, Puerto Rico.
Cleancultâs Amazon sales have increased eight times over in the past several weeks, according to
Lupberger, tripled in retail stores and doubled on Cleancultâs website.
Cleancultâs manufacturing is located in the Midwest without a âshelter in placeâ mandate thus far.
Production of lemongrass soaps and orange zest cleaners, among other products, has been
ramped up to meet demand, shifts have been doubled, the work week has been expanded to
seven day. Lupberger leaves worker safety measures to the warehouse manager. âAll I know,â
Lupberger said, âis that itâs been expensive.âÂ
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Ryan Lupberger, co-founder of Cleancult, ponders future financing in New York.
Credit: Nina Roberts
With an immediate recession predicted due to COVID-19, venture capital funding is drying up and
startups like Cleancult are worried. âWe see this huge demand,â Lupberger said, âbut we donât have
the dollars to support it.â
Some of Cleancultâs VC funding has been delayed, and Lupberger and co-founder Zachary
Bedrosian have started to look at alternatives like loans and basic lines of credit.
Tushy saw its bidet sales skyrocket when consumers began to have a collective melt down about
toilet paper scarcity. Founded by Miki Agrawal, Tushy makes portable, self-installable bidets,
allowing users to clean themselves with water rather than toilet paper. Bidets are popular in many
countries, but have yet to catch on in the U.S.
In early March Tushyâs CEO Jason Ojalvo said he had projected a possible bump in bidet sales due
to concerns about health and sanitation. But when videos of frantic shoppers pushing carts piled
high with economy size packages of toilet paper went viral, sales exploded. âThe toilet paper
hoarding,â conceded Ojalvo, âcaused the really significant boost.â
Over two weeks Tushyâs sales doubled, quickly tripled and are now holding at ten times according
to Ojalvo. Tushy bidets are sold out on Amazon and back ordered on the Tushy website. With
bidets currently being manufactured in Asia Ojalvo aims to fulfill back orders by late March or early
April.
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When Ashley Tyrner, the founder of Farmbox Direct, a subscription service that delivers boxes of
fresh produce, woke up on March 14, she thought there was some type of bug in her computer
system. âThereâs no way we could have taken that many orders overnight,â recalled Tyrner recently,
âbut we did. We are doubling the company every 24 hours.â
Many of Farmboxâs new customers are located in areas where supermarket shelves sit empty.
Others new customers set up deliveries for parents and grandparents who are not risking infection
by leaving their homes to shop.
Scough, a mash up of âscarfâ and âcough,â is a Brooklyn-based company that makes stylish wrap
around scarves and bandanas in funky patterns with attached hidden masks. The
immunosuppressant community has typically purchased Scough masks, according to founder
Andrew Kessler, as well as airplane travelers, motorcycle and bike riders. In early March masks were
in such high demand that Scoughâs entire stock sold out.
âWe went from like, âOh, wow, thatâs a bit of an uptick,ââ Kessler recalled, âto âUh-oh, everythingâs
kind of breaking,â to, âOh, no, weâre going to be out of out of stock in two months,â to âWeâre going to
be out stock in two days.â
Kessler is scrambling to produce more masks, but Scoughâs supply chain has been thoroughly
disrupted, so heâs looking at alternatives. âOur inboxes are just flooded with people asking
questions about masks and what to do and how many they can get,â said Kessler, who hesitantly
said he might resume production in four to six weeks. âBut factories are shutting downâ said
Kessler, âand who knows anything anymore.â
Fardad Zabetian, founder of the multilingual web conferencing platform Kudo said theyâve recently
had more than 200 inquiries a day about Kudoâs services. âTheyâre looking for a solution for, letâs
say, tomorrow,â said Zabetian with a laugh, âthatâs kind of the state of where we are on the
technology side.â He estimated his business has increased 400% since COVID-19 spread to Europe
and then North America.
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Kudo founder Fardad Zabetian said heâs been fielding 200 inquiries a day.
Courtesy of Kudo
Kudo is similar to other video conferencing platforms like Zoom, but with live, simultaneous
translation in multiple languages. Zabetian said international meetings that had been slated for
March, April and beyond, are being conducted on his platform. It has about 2,000 professionally
trained interpreters, many of whom are in lock down cities across Europe, willing to work from
their home offices.
âWhat COVID-19 is doing for Kudo,â said Zabetian, âis speeding up that adoption curve of people
trying a new technology. Because thatâs the only way they can meet.â
Feelings on profiting during a pandemic
Some business owners have mixed feelings about the sudden surge in sales during a global
pandemic.
âItâs really complex,â said Lupberger, of Cleancultâs rapid growth. While heâs happy Cleancultâs
products are in demand, heâs aware it could be perceived as exploiting the situation.
Cleancult has just launched a new initiative, for every customer order placed on their website,
theyâll donate a bar of their lemongrass soap to NYC Relief.
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âThere is some ambivalence around our cultural moment happening, coinciding with a really kind
of scary time for so many Americans,â said Tushyâs Ojalvo. âBut at the same time, whatâs important
to note is that we havenât really changed our marketing positioning or stance.â
âWeâre kind of just doing more of the same,â Ojalvo said. âActually, weâre doing less of the same,â he
corrected himself, referring to a humorous Tushy ad they recently pulled (made 18 months ago)
featuring two guys competing for the last roll of toilet paper in a bodega. â[Weâre] trying to be extra
sensitive,â Ojalvo said.
With the increased volume, Farmboxâs Tyrner said she feels good about keeping some of her
Kansas City supplierâs employees from getting laid off, since supplying hotels, schools and
restaurants has evaporated. Sheâs also hired several new people to work in Farmboxâs customer
service department.
Scoughâs Kessler has become accustomed to spiking mask sales during catastrophes, such as
wildfires. âWe try and just remember the reason why we did it in the first place,â said Kessler of
designing scarves with hidden facemasks, âso that sort of keeps us going.â
âItâs not a happy moment,â said Zabetian despite Kudoâs booming growth, âthe consequences of
coronavirus is much bigger than Kudo or Zoom or any of this.â
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