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Time for a Change: Chinese Diaper Maker ...

Chen, Ming-Jer, Ya...

Case

Time for a Change: Chinese Diaper Maker DaddyBaby Faces COVID-19 (B)

Chen, Ming-Jer; Yao, Bingjing (Krystal); Whittle, Mary Summers

S-0353 | Published March 23, 2021 | 5 pages Case

Collection: Darden School of Business

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At the request of local and national government officials, Bin Lin had just agreed to manufacture face masks to help contain China's nascent COVID-19 crisis. Lin was the founder and CEO of Chinese diaper manufacturer DaddyBaby. In late January 2020, he found himself working with a team of government efficiency specialists who would ensure that—within the space of two weeks—his diaper factory could produce 800,000 masks a day. Lin had had a number of concerns about making such a sudden switch, including that he might not be able to meet the government's goals. The mask-making effort proved successful, and the publicity DaddyBaby received had resulted in strong mask sales as well as improved diaper sales. As the epidemic eased in China, Lin found himself running a very different business than the one he had been managing only two months ago. Where should the company go from here? Should DaddyBaby return to its narrow focus on the high-end diaper market? Should it leverage its new strength in mask production to move into medical or at-home care products? Lin faced a new and unanticipated set of decisions about his company's future.