"Matthew Hassett shifted the focus of his company, Loftie, to international sales because of tariffs. Loftie's sales outside the US have grown from about 3% to nearly 50% in a few months, he told Business Insider. The company manufactures in China and is now treating the US market like "hot lava," Hassett said. This as-told-to essay is based on a conversation with Matthew Hassett, founder and CEO of Loftie."
"It really is as simple as Econ 101. You can either adjust supply or demand. Supply is constrained by unpredictable government policy in the US, and it's still not settled at the peak season, with the holidays coming up. For now, it doesn't make sense to move our manufacturing, especially knowing that we have the best price and quality, which is a rare combination, because we produce in China."
"We did a pilot run in Thailand. But it costs 20% more because they've got to move a lot of the components from other parts of Asia to Thailand. The labor costs are also higher. Why would you move from China? Rather than try to worry about irrationalUS policy, we just focused on selling the product that people want worldwide, worldwide. We're really lucky to have a product that works in other places."
Loftie shifted its sales strategy from the US to international markets after tariffs increased costs for products manufactured in China. International website sales rose from about 3% to nearly 50% within roughly three months. Manufacturing remained in China because of superior price and quality, while a Thailand pilot run raised costs by about 20% due to component shipping and higher labor. Supply uncertainty from US government policy constrained options, especially during peak season. The company prioritized growing demand overseas and treats the US market as something to avoid unless necessary. The product's global appeal enabled rapid international growth.
Read at Business Insider
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