What’s the situation in Lebanon?
For us, the pandemic has been able to inflict maximum damage on a country already going through one of the worst crises of its history. By the time we started quarantine in March, Lebanon was already months into the worst financial crisis the country has seen since the Civil War ended in 1991.
As a social enterprise, the human element of our work is at the heart of what we do and everything that we create. We are involved in local initiatives to support the creative sector in Lebanon, because this feels like an existential crisis for all of us here. We don’t know where the country is heading.
Sarah’s Bag has been in crisis mode for the past five months. We have been in business for 20 years. We have already weathered war and political and economic crises, but what we are experiencing now is unprecedented. I am in a crisis within a crisis.
How has the pandemic affected your business? How have you as a leader responded?
I had to be honest with my team and tell them that things are tough and are going to be tough for a while. We had to make difficult decisions as a team and a company.
During the past five months, hundreds of businesses in Lebanon have gone bankrupt, or cut hours, salaries and jobs. Unlike others, I wanted to avoid lay-offs as much as I could. Now, we are operating at 10% of our capacity, so some of the team and I are on half salaries. However, for employees who are in the lower wage bracket, the salary cuts were less.
We worked on a strategy to compensate for the local loss in sales by focusing on our online boutique in addition to focusing on the international market. The type of products people are buying are essentials and things for the home. We therefore plan to work on big pieces for home décor rather than for handbags. This way, I can keep all these artisans employed.