Kiwi firm set up to sell stylish pollution protection now on Covid rollercoaster
New Zealand’s largest face mask producer and seller is looking to grow its revenue by 40 per cent as it gears up for another tranche of sales ahead of the next wave of Covid-19.
Auckland-based MEO, which launched five years ago manufacturing fashionable face masks to combat air pollution in Asia, has sold more than 30 million face masks since the start of the pandemic in 2020 and is now selling into more than 100 countries.
Kenneth Leong, co-founder and director of MEO, said the past few years had been a “rollercoaster ride” with the company’s sales increasing as Covid cases increase and petering off as cases subside.
“When we have a severe outbreak as we’ve seen recently in New Zealand, the number of orders went up because people are concerned of Covid circulating,” Leong told the Herald.
“Domestically, mask sales are holding up really well, and better than we envisaged.”
MEO was started in 2017 by Leong and main shareholder David Gao with a focus on the Asian market.
Within its first year, it made more than $1 million in sales and is now sold in 10,000 stores worldwide.
In the early days, domestic sales of its face masks represented less than 1 per cent of its revenue, compared to 30 per cent today.
Its face masks have been made popular by celebrities and politicians, regularly worn by Prime Minister Jacinda Ardern and other politicians in New Zealand and Asia, alongside K-Pop groups and influencers.
As a direct result of the pandemic, MEO is worth tens of millions of dollars.
At peak production levels, MEO employs about 100 staff, about 15 of whom are based in Auckland. It has about half that, typically.
Leong said MEO was the largest New Zealand-based face mask producer based on sales.
It anticipates 40 per cent growth in the volume of its sales over the coming year as more viruses and strains of Covid-19 emerge. “As we have seen there will be new strains that will come up and there will be other related viruses that we’ll become more aware of.”
Part of MEO’s expected growth is by the way of demand in customised branded masks by corporations.
The company recently supplied customised face masks to the South East Asia Games in Hanoi — the biggest sporting event in South East Asia, as an official supplier, and has signed a deal to supply hotel chain Hilton in China.
The business also plans to expand into Australia. “Most New Zealand exporters start from New Zealand, venture out to Australia and then further afield. We’ve gone global and then we’re now coming back to strengthen our domestic position both in New Zealand and Australia.”
MEO is hopeful for the future and the possibility of becoming a billiondollar company. “We’re optimistic because we’re looking at all the stats, customer feedback and data we’re seeing. We don’t think that mask use is going to subside anytime soon.
“We’re more optimistic about global growth and are inspired by rival face mask manufacturer 3M. Their masks are white and boring but it is a trusted brand and a go-to product.
“Our aspiration is for MEO to become the go-to product for those looking for not just a functional white mask, but for a functional mask with designs that they would feel good and look good in,” said Leong.
“From day one we thought MEO would be really big, just on the back of the anti-pollution product, but ... it has gone better than we thought in recent years due to the pandemic.”
Leong, who has a background in corporate finance, said MEO was “conscious of the fact that we’re making money at a time when there are many challenges around the world”, and was looking at the possibilities to reduce waste generated by the face mask industry.
It was working on a plan for collection centres to manage waste and recycling to reduce the amount of product ending up in the ocean. It hopes to set up collection bins in strategic locations with waste disposal partners. MEO has factories in Auckland’s Penrose and Southern China.