Road to Recovery: Retail Industry Execs Reflect on COVID-19 Pandemic

The new decade started off with promising new opportunities for the pleasure products industry. January saw its annual gatherings of executives and buyers, with exciting new product debuts at trade shows, and many retailers looking forward to the upcoming Valentine’s Day shopping season.

Sextech innovation was also finally getting the spotlight it deserved at January’s Consumer Electronics Show, as it allowed pleasure products to be displayed for the first time ever under its Health and Wellness category. Several of today’s most cutting-edge brands proudly participated in the massive annual mainstream tech expo.

Among the most high profile was Satisfyer, which used the platform to debut its latest innovation, the Satisfyer Connect App. The brand-new high touch app was among the winners of TWICE Picks Awards, which celebrates innovations in the consumer electronics and major appliance industries. Satisfyer was poised for a banner year before the pandemic hit.

As the news coverage of COVID-19’s devastating impact on Wuhan, China increased, it wasn’t until March that it turned everybody’s world upside down. For the pleasure products industry, the pandemic’s impact was suddenly felt when the American attendees of Shots’ trade event in Ibiza had to quickly get home before the borders closed.

Jerome Bensimon, Satisfyer’s VP of sales, breathes a sigh of relief that the company was able to debut its app, which coincidentally proved to be well-timed, offering interactive functions like messaging, video chat, haptic programming, motion sensing, and more.

“It was good timing for us to stimulate the industry by introducing our app-controlled product line,” he said. “The features match perfectly for long-distance use — which is very timely with social distancing.”

Since the pandemic first hit China, the past several months have presented non-stop challenges, Bensimon says, adding that the company remains committed to supporting the industry’s recovery.

“We’re here to support our retailers,” he said. “We have no reason to exist otherwise — we’re going to do everything we can to generate sales. We have to keep things going.”

Adapting to unprecedented times

As soon as stay-at-home orders were issued across the U.S. and abroad, adult retailers and their suppliers had to adapt their businesses to navigate through the global pandemic’s trying waves of uncertainty. With physical stores shut down and companies’ esteemed crop of “road warriors” confined to their homes, just about everyone in the industry (like the world in general) has turned to technology to keep business intact.

When New Jersey ordered all non-essential businesses to close, Williams Trading was forced to temporarily suspend business. “But even though we are closed at the moment, we are still communicating with our customers through email and social media,” McCarthy said. “This is something none of us has experienced before, so we’re taking it day by day.”

Across the pond in the U.K., ElectraStim maintains a rotating skeleton staff on hand to process wholesale and website orders, while the rest of the company’s team work from home.

“We’re of course abiding by all the NHS guidelines in the U.K. with regards to social distancing and hygiene in the workplace, which is why we’ve restricted the number of people allowed in our building at any one time,” said Claire Blakeborough, ElectraStim’s marketing and communications officer. “Only essential functions are carried out in the warehouse at present. In the U.S., we have a small team in Miami dispatching orders as normal, so customers should see no interruption to our service. Customer services, marketing, accounts and all other office functions are running almost entirely as normal. Just from our spare rooms at home!”

Fun Factory USA also has implemented similar changes to maintain operations during the pandemic, including working from home while its warehouse team is taking increased precautions, with fewer hours, staggered shifts, and more cleaning breaks.

“We have created plans to make sure fulfillment continues in the event that we need to shut down our warehouse,” said Kristen Tribby, head of global marketing for Fun Factory USA. “We’ve adapted our marketing and sales strategies to solely focus on ecommerce, both for our own site and for our retail partners.”

Echoing the worldwide sentiment of the pandemic being a “crazy” time, Exsens’ Rebecca Pinette-Dorin says the company has had to deal with various issues across its international branches.

“We are part of a manufacturing group, so we've remained cautiously open, but since we have locations throughout Asia and Europe, there have been a lot of complications to handle — sick-leave, child care problems, quarantine, and just general low morale,” she said. “Most of us are working from home, and it's a big change for many.”

Pinette-Dorin points out that Exsens is doing what most people in and out of the industry are doing during the pandemic — staying connected via video-chat and social media.

“For my team, I initiated a weekly recap, where we all Zoom and talk about our week. (Maybe have a drink?) It’s not always about work — and that's fine,” she said. “The idea is to make sure everyone knows they are not alone. We also started doing [choreographer] Ryan Heffington's Let's Dance on Instagram live together. Something to get the yayas out and also fill us up with positive energy!”

High On Love CEO Angela Mustone lamented the closure of retail boutiques, which she says contribute to a large portion of the CBD brand’s sales. The company is now changing up its strategy to gain more sales through ecommerce.

“We're elevating our website and stepping up our social media strategy, even organizing Instagram Live sessions with wellness experts to offer valuable content to our customers and attract new ones,” Mustone said. “We've had success with influencer campaigns this month since so many eyes are on social media. This pandemic has been a setback for us as it has been for many brands, but ultimately we're turning it into a time for improvement that will benefit the business long-term.”

Some companies have pivoted their businesses in entirely new directions due to the pandemic. In early April, Liberator’s parent company OneUp Innovations announced that it was manufacturing gowns and masks to support hospitals in the U.S. With an overwhelming demand for protective gear, OneUp is delivering daily to meet the critical needs of healthcare workers. Its facemasks also are available on Walmart.com and AvanaComfort.com.

“In response to this COVID-19 crisis, I directed my design team to also develop medical facemasks that we could produce in high-volume from readily available materials,” Liberator founder and CEO Louis Friedman said. “That mask is now in production and we are ramping up.”

On Facebook, Joyboxx founder and inventor Deborah Semer revealed that her company had established a new division, PP Health Products, with the introduction of a new Clean Safe Box and the Germ-Away Tray for the company’s patented hygienic storage system, otherwise known as the Joyboxx + Playtray.

“We are located in Seattle — at ground zero and the first U.S. state to issue a stay-at-home order — however, our products are deemed essential to prevent the spread of germs and infections so our factory has been working hard to keep up with the backlog,” Semer said. “We are launching this week to help front-line workers, patients and those quarantined at home.”

With wholesale and distributor sales ceasing almost overnight, Bedroom Products and Rock Candy Toys turned its focus to B2C marketing. The company quickly got creative with its existing tools.

“Those included the existing Rock Candy and Bedroom Products online blogs, ecommerce stores, access to our products, and the ability to ship from a private facility,” Rock Candy Toys/Bedroom Products’ Casey Murphy said. “At the time, we didn’t know how much things had yet to escalate, but the underlying goal was to keep our followers’ spirits high, sexual health prioritized, and minds occupied. That’s it. If we generated sales, that would be a bonus.”

Survival Mode

Brick-and-mortar retailers have been impacted the worst by the pandemic; and coupled with the U.S. federal government’s seeming exclusion of adult businesses from its CARES disaster relief, small businesses are being left to fend for themselves.

“We may not be eligible for federal disaster relief loans so businesses will need to use their own money to recover; and that may cost more money than one may have depending on how long the store is closed,” said Nenna Joiner, owner of Oakland, California-based boutique Feelmore. “No one could have ever predicted this and it’s a cash problem for all adult businesses at every level.”

Citing reports that it could be between 18 to 24 months before a vaccine is found, Joiner predicts it will be a long while before retailers will be able to financially recover from their period under lockdown.

“The pandemic has changed retail because the longer the consumer stays home and learns a new behavior such as saving money, getting them into the stores will be painfully difficult,” Joiner said. “You need a lot of traffic to make physical stores' cost per square-foot work. Many stores already had online spaces, yet some don’t. I’ve seen store-owners lose out on new customers because they don’t have revamped websites. They expect the consumer to always walk in their door and love their personality with smiles and giggles ... Nah, not anymore. Retailers will really need to work harder for customers to stay in this ‘new economy.’”

With adult stores being classified as “prurient” businesses, the Small Business Administration (SBA) has said it is unlikely that they will be eligible to receive disaster relief.

Fun Factory’s Kristen Tribby shares a harrowing statistic of the amount of retailers that have been affected by the pandemic.

“Eighty-five percent of brick-and-mortar retailers have shut their doors, which is a real blow,” she said. “Sex-positive physical stores are what makes the U.S.’s adult retail landscape so vibrant. The work they do in conversation with their customers is difficult to do online. These shops act as a community resource for accurate, shame-free, pleasure-based sex education, so if they are not able to open after this epidemic, there will be a ripple effect in the sex-positive movement. In the midst of this health crisis, it’s more important than ever to support our retailers and this industry.”

The pandemic has been especially challenging for small, independent retailers that have invested so much to establish themselves as legitimate businesses and pillars of their local communities.

“My main goal in my business is putting a real face to adult stores, owners and staff,” said Lacey Thompson, owner of Columbus, Ohio-based retailer, The Garden. “I give back to my community as often as I can. And without the community support we have received, I don't think we would be able to make it out of this. Sadly it is too soon to tell if we, and fellow business-owners, have to shutter our windows and doors permanently.”

As it is, adult retailers are constantly facing challenges, whether it’s zoning laws or financial discrimination.

“This once again shows that we are the black sheep in the wild world of small business,” she said. “It's so hard to find a bank or credit-card processor willing to work with adult stores. So after reading the limitations on the SBA loan, it was another punch in the gut. It would be nice to be looked at like an actual business — because we are. When I shared the fact that adult stores weren't eligible on my Facebook page, my friends were floored, because they know what I do for my staff and community. And frankly, they were pissed.”

With its thriving online store and chain of nationwide sex shops, Adam & Eve’s experience with the pandemic has been divided, to say the least.

“Our brick-and-mortar stores have mostly closed — about 63 of 78 total stores closed during the pandemic so far,” said Chad Jenny, Adam & Eve’s national business consultant. “This has obviously greatly affected our revenue in a negative way. Our stores have had to embrace new marketing and sales channels to survive, like pushing business to web sales and promoting curbside pick-up.”

On the other hand, Jenny says that Adam & Eve’s ecommerce sales are booming.

“It’s like a second Valentine’s holiday buying season, maybe even a little better,” he said. “Our warehouse employees really do deserve a heartfelt thank you for the amazing work they have put in during this trying time for the world.”

Jenny says that the sad reality is that not every store will be able to weather the storm; and the industry’s likely exclusion from the CARES Act is particularly disheartening.

“That will certainly keep a few stores from being able to re-open and hurts all our employees and business partners,” he said. “The world is a series of dominos, everyone and everything has a greater effect than can ever be seen.”

Imbesharam COO and co-founder Raj Armani said as soon there was a nationwide lockdown in India, sales dropped almost immediately.

“The primary reason for this was the consumers realizing that their orders will not be delivered in the lockdown period,” he said. “Even though we announced a site-wide sale, the known fact that their orders would not ship, and worries about the hygiene and safety of a package that would change many hands, our shoppers are discouraged and many of them are holding over for this period to pass. It is interesting to know that our site traffic has registered an increase of 25-30 percent since.”

Armani says that he has concerns about the future of brick-and-mortar retail, noting that only time will tell when consumers will be ready to return to public spaces, including stores.

“The only advice I can offer to [retailers] is to take this opportunity to innovate and re-invent their business models,” Armani said. “If they can sell in-store, they can sell online. They can sell in various forms of ‘contactless’ model, and start promoting their contactless selling proposition. Because people will come out of their homes soon, and when they do, this uniqueness about your business will absolutely grab their attention and you will possibly recover sooner than later.”

The global economic damage caused by coronavirus can’t really be measured or fully predicted yet. Pleasure products industry vet Dennis Paradise says that with businesses closing, commercial rents not being paid, and loss of income to millions, it may take years to recover from the damage done.

“Depending on the strength of some companies, and the demand for their products, some will recover quickly, and have very little pain,” he said. “I certainly believe the adult [entertainment] industry and adult products retailers enjoy an ongoing and strong demand. When those businesses that were interrupted by coronavirus restart, I believe they'll feel fully recovered in 60-90 days. They won't get back the loss of income from the interruption, but they will be back to normal cash flow fairly quickly. Paradise Marketing is preparing a few promotions in advance to help the distributors and brick-and-mortar stores when they begin their comeback after the COVID-19 danger has subsided.”

Although everyone is anxiously waiting for the lockdowns to be eased, nobody is expecting life — and business — to get back to normal soon. Nevertheless, Jenny is looking on the bright side.

“I believe social distancing will continue … so [that means] less people fighting over the clearance racks,” he joked. “But honestly, I do believe we will see a large bounce-back for brick-and-mortar stores. Look, online shopping will continue to be a dominant force in retail, that’s not going to change and it will continue to grow. However, I believe that after being cooped up in our homes, people will rediscover their love of getting out and interacting with life. People will want to get out and shop. When the stay-at-home orders are lifted, that is the time to plan events in your store. Give people something to do to celebrate life once they are free from their captivity — and they will come.”

In Staten Island, N.Y., Nitecap Megastore is waiting out the pandemic by staying connected with its customers through social media, and even serving them during specified days and times that they can be open for essential purchases, like “[rolling] papers, kratom, lube, toys, condoms and CBD,” Nitecap Megastore manager and buyer Jackie Blue said.

“Keeping it distant and clean, limiting the amount of people inside too,” she added. “We also take deliveries on that day. All of us in industry — our stores have been hit with natural disasters and struggled with competition; [as well as] closures and pressures from local laws. We as an industry have had losses, but we have survived. Our people's needs will never waver and we will always be there for them. Besides, we have yet to plan the party for when this is all over!”

Manufacturers Push Forward

With online sales of pleasure products seemingly unaffected, the industry is proving to be not only recession-proof, but also surprisingly immune to the pandemic. Likening it to the spirits industry, Susan Colvin, founder and CEO of CalExotics, says that neither market has ever encountered a crisis of this nature that has caused so many stores to shut down.

“The COVID-19 pandemic is causing major shifts in our industry as companies, including ours, are changing the way they do business,” said Colvin. “We are seeing retailers around the world closing locations and shifting to online sales. This is a huge change, as brick-and-mortar retail is still the heart of this industry. We are doing everything we can to keep our business, and our customers’ business, thriving. We’re offering online support, and continue to work on new and exciting products set to release this summer.”

As the media coverage of growing COVID-19 cases in China began to ramp up, so did concerns about how it would affect fulfillment of the products made in the country, which span just about every industry. In addition to the short-term impact it’s having on the world economy, there are fears about how supply chains may be affected from the disruption in the long term.

“All freight is favoring respirators, masks and other COVID-19 fighting supplies (as it should) and pleasure products are in a holding pattern in warehouses all over Asia,” said Pinette-Dorin. “Now that manufacturing is back on track in Asia, many factories are switching horses and making medical products for the pandemic, because that is what is in demand both here and in Europe.”

Multiple reports suggest that there will be a shortage of condoms in the near future. In the meantime however, Paradise Marketing, a leading supplier of condoms, reported an uptick in business as people nationwide began staying at home.

Company owner Dennis Paradise said that on a company level, Paradise Marketing remained open and no employees lost any time as most office employees and staff worked remotely, with no loss of productivity.

“The team has really been great,” he said. “The facts have always been that when economic times slow down — when people stay at home, and when a paycheck isn't coming next week — condom sales go up. I can't really say how business will be over the next few months. I can say clearly, up to today, business has been surprisingly good.”

Manufacturers that produce their goods locally and have accessible warehouses to store their stock have been able to maintain their operations going.

“At ElectraStim we’re lucky because we have a small range of SKUs and hold a lot of our own stock; plus we can make more in-house if need be.” ElectraStim’s Claire Blakeborough said. “I do expect that at some point though, all manufacturers will be affected by shortages of raw materials as international lockdowns continue. Fulfillment-wise, running a skeleton staff does mean that our orders may take a day or so longer to dispatch than normal, but the couriers are not reporting any major delays at present. Everyone is aware that delays are possible in all aspects of life right now, so I think we’re all being a bit more patient.”

Rallying for Retailers

With the industry’s community of traveling salespeople and brand ambassadors now grounded, several vendors and distributors have turned their attention to education. Utilizing various different platforms, education on products, sexual wellness and even COVID-19 prevention has become a focus, as well as a way to pass the time, while in lockdown mode.

Williams Trading opened up its e-learning platform Williams Trading University to all retailers during the pandemic; and additionally created an online course for retailers titled “COVID-19: A Retailer’s Guide.”

“Basically, it condensed the information that could be found on the CDC’s website, and picked out the points pertinent to retailers,” Williams Trading Co.’s Rachel McCarthy said. “We wanted to make the info easy to digest without a ton of links to click through, because it was easy to get lost in all the information available. We created a few simple infographics that could be downloaded and printed out: Cleaning Tips, COVID-19 Symptoms, Best Practices for Employees. We wound up uploading the video to our YouTube channel, and making the infographics available to anyone who wanted them.”

Coincidentally, Voodoo Toys was already preparing to roll out its new Voodoo Online Academy at March’s Altitude trade show. The new online portal gives retailers the opportunity to learn about the brand in video segments.

“We were very fortunate that we have this content ready to roll out now, when it's so critically needed,” Voodoo Toys’ Danielle Seerley said. “We will be hosting Voodoo ‘Sofa Sessions’ on a regular basis to imitate a Netflix n' Chill type training experience. Webinars are something we have been looking at, but the travel obstacles we are facing made them an immediate necessity.”

Seerley says that the company plans to release new Sofa Session webinars every few weeks, and participants can expect gifts from Voodoo Toys. The webinars will also be added to the Voodoo Academy so they may be accessed by anybody who was unable to tune in, or for future product education.

“Our sales team is working from home to assist anyone that is open, but we are also looking to help those stores who are closed and looking for alternative ways to support their business,” she said. “We are incredibly flexible in helping people navigate extra opportunities and willing to offer product for online contests or incentives. Our marketing and branding team is also creating special content for social media to help stores connect with their audiences in positive ways. We will continue with the planned releases we have, but adjust the way we present these new items from a trade show platform to online.”

Fun Factory USA also is extending its services to retailers, said Kristen Tribby.

“As always we pride ourselves in our partnerships as much as our products,” she said. “Our sales team is working with retailers on campaigns as well as increasing their visibility on our channels. Fun Factory would never have gotten a foothold in the U.S. market without small, sex-positive retailers who were excited to take a chance on us, so stepping in to help our retail partners is personally important to us, apart from being good for the industry as a whole.”

Virtual product education training sessions and video courses have become the go-to for the time being, with brands such as Sliquid, WOW Tech, Blush Novelties, Wicked Sensual Care, Pipedream and others utilizing technology to support retailers.

With multiple warehouses located around the world, Satisfyer’s Jerome Bensimon says that the company’s product fulfillment has not been interrupted by the pandemic, thus allowing them to continue to support retail businesses. He agrees with the various reports of skyrocketing sex toys sales, and said consumers are looking for the best deals as they use their time at home to explore new intimate desires.

“We’re still delivering to everyone in huge quantities,” he said. “Behind the scenes, we’re preparing for how we can support the industry after COVID-19 — we think it’s going to impact the business for a long time.”

Keeping Connected

Once everyone was settled into their new work-from-home life, pleasure product brands and retailers turned to social media to keep their customers engaged. Quarantine sales, product bundles and other promos have been used to encourage sales, however companies also are providing education and entertainment through live-streaming, blogs and other fun freebies, such as printable pages for coloring that became all the rage.

“I’m staying connected by creating videos such as the ones I have on TikTok, IG and Facebook,” Feelmore’s Nenna Joiner said. “My social media numbers are growing as I learn a new level of engagement. Hell, when this all started I was sitting on street corners with a cardboard box that read ‘Vibrators for Sale.’ I believe the Feelmore brand and me are a brand. I get to tell unique stories while moving products simultaneously. This is a great time to be in business if you are a very different brand with very different content.”

The pandemic has encouraged brands and retailers to partner in creative new ways. A number of manufacturers, including Aneros, Kheper Games, Voodoo Toys and others, have offered up free products for contests and giveaways to bolster consumer engagement. Making the time and effort to create content and interact with consumers has easily proved to be a full-time job in and of itself.

“I started a group called ‘Jackie Blue's No Pants Party’ on Facebook. It is as much for my sanity as it is to keep interaction with our clients up,” Blue said. “Employees, adult brands/manufacturers/road warriors, and our clients’ morale have been up, and [we’re] having fun. I've gone live [on Facebook] playing Kheper’s games and giving away prizes from my own stash — now I'm even receiving volunteer support from brands. So much so, I've had to create a posting schedule and social calendar. I love this industry so much. The support and love is always amazing. We are all there for each other, and this is why we will survive.”

Shopping Post-COVID

From the future of trade shows to traveling to “normal” activities like eating at a sit-down restaurant, there has been a lot of speculation about what the future of businesses that rely on human interaction will look like. Particularly when it comes to pleasure products, testers are a must for demonstrating their selling points. However with today’s fears surrounding coronavirus, it might be time to reconsider how these highly touched items are handled.

“I think initially once retailers open back up they will still need to adhere to orders such as distancing and whatnot,” Deja Vu’s Megan Swartz said. “There will be no testers for toys or lubricants and no trying on shoes or clothes when Deja Vu re-opens. At least until this virus has come and gone. I think there is an increase in online business now for obvious reasons, but I don't think that will sustain once brick-and-mortar stores open back up.”

Not only will the way that we shop change, but also as we’ve seen the pandemic spark newfound concern about the hygienic nature of everyday products, shopping for adult products may also evolve with the times.

“Overall consumers have been shifting to investing in better-quality products that appear well packaged, presented and backed by a reputable brand,” Armani said. “That shift will keep its momentum and now more consumers will be inquisitive about how the product was produced, packaged, stocked and sold. There will be greater emphasis on the safety and hygiene of the product and its packaging, and lead to greater emphasis by manufacturers and retailers and everyone in between to focus on processes to keep the product as untouched and hygienic as possible.”

With a lot of high-quality products retailing at higher price points, some retailers are hoping manufacturers will make them more accessible for consumers, in order to create the business that’s needed to recover from the pandemic.

“I hope manufacturers and designers are able to bring down the costs of ‘luxury’ before COVID-19 and help us all make better profit margins with better products,” Blue said.

Semer also predicts that many consumers will be too low on cash to invest in high-priced pleasure products.

“People will be careful of every dollar they spend, so prices may need to come down in the pleasure products market,” she said. “Multi-functional, health and environmentally conscious products will be winners and brands that offer transparency and value will grow.”

Affordable price points are going to be a must in order for adult retail to recover, Satisfyer’s Jerome Bensimon says.

“Purchasing power is going to be lower,” he said. “Shoppers are going to be leaning towards products with affordable prices. Hygiene is going to be more important — which Satisfyer addresses with hygienic packaging seals. People are also going to want added value, and I think that our new app-controlled products offer that, as well as emphasize the benefits of wellness.”

‘In the middle of difficulty lies opportunity’

Serving as a glimmer of hope is that we are all in this together and an unprecedented crisis has brought an already tight-knit community even closer. Although COVID-19 will have lasting effects, the retail community remains optimistic.

“People are always going to be having sex,” Williams Trading’s Rachel McCarthy said. “People will always want toys. There was an initial thought that sales would drop because people will be focusing more on essentials — and then we saw that pleasure products are very much considered essential by the public.

“It’s unfortunate that so many businesses in this industry had to temporarily shut down, but I’ve seen a lot of business owners get creative. They’ve taken to social media, offered curbside pick-up, offered local delivery services to consumers. Maybe business will be slow initially once this is over, but we’ll bounce back.”

Semer is encouraging people to take this time as an opportunity for reflection.

“I have no doubt the industry will survive, but take the time to reflect upon your contribution to the greater good,” she said. “If you are in the business to make a buck then maybe it’s time to retire or reprioritize. What’s important? After survival, it’s love, happiness, health and the planet and those who contribute honestly to one of those fundamental pillars will be alright.”

As an industry that is constantly fighting for equal opportunity, the pleasure products industry is comprised of countless strong, resilient leaders.

“Tough times don’t last but tough people do and we are an industry filled with the toughest of the tough and the best of the best,” Adam & Eve’s Chad Jenny said. “We can all lean on each other, whether partner or competitor, and we will all get through this together.”

Reflecting on the AIDS epidemic that took the lives of many in the sex-positive community, Fun Factory USA’s Kristen Tribby is confident that the pleasure products industry will persevere.

“We continue to grow in the face of increased restrictions,” she said. “Sexuality will always be at the core of humanity. There is no other industry out there that is as agile and inventive as the sex industry. If we look back at how the porn industry drove the boom of the internet, even inventing the concept of online payment, we can see that people always want and need outlets for sexual expression. As Albert Einstein said, ‘In the middle of difficulty lies opportunity.’”

With the world in upheaval, members of the adult retail community are banding together like never before. Despite canceled trade shows and travel schedules, and countless store closures, dynamic sex toy purveyors are seeking new and creative ways to push forward. It is a time when we’re indeed all in this together, and for the sake of our beloved industry, it is incumbent on us to support and empower one another as we usher in a new reality.