- As coronavirus fear and anxiety loom over the US, sales of items like hand sanitizer, cleaning products, and face masks are booming.
- It's not just big companies that have been affected by these spikes.
- Scough, a small company that makes scarves and bandanas with built-in face masks, received 50 times its normal sales. It's now struggling to keep up with heightened demand.
- Cofounder Andrew Kessler told Business Insider that the demand and shortages shed light on the impacts of an interconnected global supply chain.
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When Andrew Kessler, whose day job is chief executive of the marketing agency Article Group, started his "face mask meets scarf" company Scough, it was just a fun side hustle.
Scough - the name combines "scarf" and "cough" - grew a small and loyal following among people who are immunocomprised, who suffer from heavy allergies, or who spend a lot of time on bicycles or motorcycles.
Then the coronavirus outbreak hit.
As Kessler told the Indicator podcast, Scough received double, then quadruple, then 50 times its normal sales after the US Centers for Disease Control and Prevention (CDC) last month warned of a coronavirus outbreak. It's part of a larger surge in "panic-buying" things like hand sanitizer, nutrition bars, and oat milk. This is despite scientists saying that face masks are not likely to stop the spread of the coronavirus.
Scough is now completely sold out of product and materials, and doesn't know when suppliers will send replenishment. Meanwhile, the company has no shortage of messages from customers clamoring for restocks.
"Our factory in Brooklyn is super overwhelmed because they're getting shifts in supply moving out of China back to the US," Kessler told Business Insider.
He added that the demand and shortages shed light on the impacts of a global supply chain. "Some people have it a lot worse, like people who get most of their stuff in China, where things haven't been shipping out. You start to realize the interconnectedness of the global supply chain where there's always some piece that's made in China," he said.
Scough is working on ways to meet the high demand as soon as possible. "There's clearly a lot more interest in the space, so we think it's worthwhile," Kessler said. For example, one part of the filter inside the mask is manufactured in China, so the company is looking for manufacturers in other countries.
Kessler also said they're looking into new designs and different materials, while maintaining quality and style. Scough based its brand on scarves and bandanas that look more like fashion statements than medical gear. So it's important that any new designs still look nice. "It's very hard to design a good mask and make it comfortable for a lot of different faces. And if you're not wearing it, it's not useful at all," he said.
Kessler likened this whirlwind to being a small player in a very big storm. His best advice for other companies experiencing similar issues is simply a reminder to breathe amid the uncertainty and anxiety. It's about addressing the situation "without a sense of panic" and "just being persistent," he added.