4 minute read
Sussex Innovation
How can small businesses respond during times of crisis? Fiona Bennett, Head of Finance and Systems at Sussex Innovation, shares a few key takeaways from an unexpected success story
SEXTECH AND TOILET ROLL
During the Covid-19 pandemic, a period that brought huge financial challenges for many businesses, the sex toy industry experienced 200% sales growth worldwide. What are the key lessons that aspiring entrepreneurs and small business owners can take away from this unprecedented success? Most companies will instinctively consolidate and try to weather the storm during times of crisis, but in fact, this is exactly the time when small businesses most need to be brave, take risks and seize opportunities. Sometimes these opportunities are obvious – as anyone selling toilet roll or hand sanitiser in the spring of 2020 can attest – but in many cases there will also be secondary markets that emerge because of the upheaval.
❛❛ During the Covid-19 pandemic, the sex toy industry experienced 200% sales growth worldwide ❜❜
Earlier this year, I was part of the team behind Sussex Innovation’s TV series, Sussex Pioneers. During the filming we went around the county speaking to growing businesses with inspiring stories of innovation. I heard first-hand
Calandra Balfour (Lust!) and Emma Brown (Knude Society) in the Sussex Pioneers TV show from two local entrepreneurs about how a combination of different trends in the SexTech industry came together, leading to the rapid growth we saw during the pandemic.
Calandra Balfour, founder of the independent high street retailer Lust!, and Emma Brown, of online women’s sexual wellness community Knude Society, pointed out how lockdown was the catalyst, accelerating a societal shift that had been gradually growing for more than a decade.
In the 1990s and 2000s the conversation around sex changed, with once taboo subjects becoming more visible in popular culture. As internet access grew, those barriers were broken down even further, and the mass market was primed and ready to embrace SexTech more widely. At the same time, this conversation led to increasing awareness of the emotional and mental benefits of a more open and healthy sex life.
Fiona Bennett at the recent Global Speakers Summit 2022 in Dublin, where she delivered her award-winning speech on SexTech and innovation in times of crisis
Lockdown acted as an inflection point for late adopters of SexTech products; consumers who had already had their interest piqued, but hadn’t yet taken the final step to make their first purchase. Finding themselves alone at home for a sustained period, and with mental health, wellbeing and self-care in the zeitgeist, customers finally took the plunge. In turn, manufacturers and retailers rapidly innovated their products and distribution networks to meet the increased demand.
A lot of small businesses think of innovation as something that is only for big businesses with huge R&D budgets, but in fact they hold a distinct advantage. Small companies are capable of rapid innovation because they are agile, not weighed down by bureaucracy or entrenched processes.
That’s why our plan for Sussex Pioneers was to show that innovation is for everybody. We want to leave every business in our region feeling more confident about how they can address their challenges and capitalise on opportunities. With so much uncertainty and change happening, we think it’s important that we demystify innovation and make it accessible, not just to digital and technology businesses, but retail, food and drink, manufacturing and construction companies. Most innovation doesn’t happen at the forefront of technology and research. It’s about solving very common challenges that every small business goes through – like cashflow, recruitment, productivity and efficiency.
So how can small business owners learn from the example of the sex toy industry? Well, here are three strategies that can help you to embrace innovation in times of uncertainty:
Pillow talk – one message that we heard repeatedly is that doing your research is crucial. However, it needn’t cost the earth to uncover useful market insights. Get intimate with your customers and try to understand what they really want – whether that’s using feedback surveys, a suggestion box, or good old-fashioned conversation. From these personal insights, you can start to unpack the bigger trends behind their concerns to inform the development of your products and services.
Get on top – you’re either working on your business or in it, and many small business owners find it hard to separate themselves from the day-to-day jobs that need doing. Make time to continuously review for potential efficiencies across people, process, and technology that can free up your time to plan your next move.
Find your bed fellows – dedicate time to managing your business affairs; from the casual and ad-hoc (e.g. delivery drivers and couriers) to your long-term, stable partners (e.g. accountants and lawyers). Most importantly of all, pursue the relationships that will enhance your own qualities – the co-creators and collaborators you meet along your journey.
