7.4.2020:

It's time for a briefing.

Thanks to our resellers and the extraordinary response from hospitals, care facilities and emergency services, our focus on procurement and logistics and security was and still is in everything that has to be considered and decided at any time in exceptional situations.

The short time of just a few weeks for the procurement of breathing masks has already undergone a fundamental change. First of all, from the range of orders that now feel like they are slowly being delivered after the first wave, the export market did not really exist. Until calendar week 12 and 13, there was a lack of clarity among our Chinese partners as to whether and what may be exported from China and how to deal with this uncertainty on the part of the Chinese administration. Let us remember: China was the first country to be affected by Corona. Thus, the need for masks and protective equipment there was also extremely high with a large population and has remained at a high level of self-sufficiency because the distance is still there to prevent the epidemic from flaring up again.

In weeks 12 and 13 of our calendar year, China's export restrictions were gradually and noticeably relaxed. The companies were now encouraged by the government administration to export. This has a double connection: on the one hand, a political, humanitarian. It is quite clear to the Chinese, including the administration, what Corona means and causes as an epidemic in every country affected by it. That is why China would like to take this opportunity not to stand there as a land of the inhumane. Furthermore, the economic catch-up must now be started in China in order to make this bumpy business year healthy with the few export goods that are now in demand.

The economic flow of the year in China is very much shaped by the joint celebrations. In the time of the traditional Chinese New Year, the production for the export that is decisive for us basically falls for almost a month. That was in February of this year. The Chinese shutdown in Corona then followed in March, thus another, but unplanned, loss of one month in business. The joy was then all the greater to finally return to normal business afterwards. But this was not so. The Chinese found a world affected by Corona. Exports of normal goods were low in the consumer sector and production in the exporting countries of other goods was also reduced. The participation in supply chains was interrupted again, because there is now a worldwide problem and the Chinese are not getting rid of their goods in the other export goods as before.

In May we will experience a slow start-up of the global economy and globality. Starting in June, event dates will be more secure and secure planning will start. The hustle and bustle will also return to the area of advertising materials. Nevertheless, one thing will have changed: Duty of distance and mouth protection will continue to accompany us this year and help shape our lives, but no longer determine them.

Until recently, anyone wearing a mask in public was considered a know-it-all and an absurd nerd. That has changed within the past 2 weeks. We are thus adapting to more Asian conditions, where the use of masks is part of everyday life. This virus will not be dangerous until the spring of 2021, when there is effective medical defense. The lesson to be learned is that the inefficiency of stocking is to be achieved socially, that is, it has a political dimension and not just a cost benefit analysis of the short-term economy.

Let's come back to our current supply of masks with bagobag:

Production:

One supplier has become 4 suppliers in 3 weeks due to the increasing volume. Three of them have ongoing productions for us and our customers. The 4th is ready by us.

This set-up cost us a lot of time for control and security. Topics were and are the security of the money transferred, the safeguarding of the usability or the lack of certificates (thus the elimination of potential suppliers), the possibility of exporting as medical goods (a reseller in China is not allowed with FFP1 masks buy another middleman, but must have made a purchase directly from the factory) or as personal protection or as an item not further defined in protection classes.

Logistics:

At the same time, we have set up logistics with our partner Fedex. Because of our willingness to invest more money than usual in express services, but also because of our customer structure and the volume, we now have the possibility to bypass the package jam in southern China as a special service.

In the last 2-3 weeks, the queue of express goods in the relevant industrial zones in China has been getting longer and longer. Please keep in mind that corona infection also prevails in the USA and India. This leads to a considerable increase in waiting times. It is still the same and is getting worse. Express shipments simply remain in storage for up to 10 days because there is far too little storage space in airplanes.

The administrative limitation of air traffic is really not understandable here, because it leads to the opposite of what should be achieved.

This does not protect the populations, but rather delays the transport of important protective goods, thus protecting goods in the Corona intensive period. Politicians have long been asked to think quickly about their own regulations and bring about improvements. What is politically done is what politics is systemically wondering about here.

In the transport sector, we are opening up further opportunities from which all customers benefit.

Prices:

We are considering a price increase for the FFP2 masks in order to better cope with the increased purchase prices as well as the necessary special service in transport. Production costs rise as demand continues to increase worldwide. Our special services in logistics must now also be included in our sales price.

Please stay healthy. Please use masks in public.