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ABC News
ABC News
Business
business reporter Samuel Yang

Two years into the COVID-19 crisis, why are some businesses thriving while others still struggle?

Juhee Jolapara helps a customer pick a traditional wedding dress. (ABC News: John Gunn)

阅读中文版本 | Dalam Bahasa Indonesia

They say there is opportunity in every crisis, and Juhee Jolapara knows it firsthand.

"I had absolutely no idea that we would be able to grow so quickly," said the owner of Jolampara, which designs South Asian couture for weddings and cultural events.

Started as a passion project alongside her banking job at the height of the pandemic in 2020, the 26-year-old entrepreneur didn't see it coming at all. 

Juhee Jolapara moved consultations online during lockdowns. (ABC News: John Gunn)

"I've always been so passionate about fashion, especially South Asian fashion. It's a big part of my culture; being Indian is part of my identity."

Her initial plan to open a shop in Parramatta was disrupted by the subsequent lockdowns.

Instead, she converted a spare room at her Western Sydney home into a boutique, selling and renting hundreds of clothing items a year.

Juhee Jolapara says the "erratic" pandemic forced her to change her business model, but that has paid off.  (ABC News: John Gunn)

She said social media strategy was behind the surprising success.

"Don't underestimate the impact of social media and word of mouth," she said.

"And on the back of that, we have some influencers and some local celebrities in other countries, who would be quite well-known in our South Asian community."

'Thinking outside the square' and capitalising online

The COVID-19 pandemic has seen more than half of the world's population in lockdowns, with more people than ever stuck at home and shopping online.

Online shopping hit record highs across many countries, including Australia, even before the latest Omicron outbreak.

Another of the beneficiaries was Stuart MacKenzie. His Little Juniper gin business thrived, selling up to 4,000 bottles in the first year alone, capturing the online growth besides traditional sales channels.

After quitting his high-pressure job in visual effects, he started to pursue his childhood dream — being a distiller — in early 2020.

Although the startup did not go as originally planned due to COVID, Mr MacKenzie distils, packages and delivers mostly himself to cut costs, and has managed to pivot frequently to deal with lockdowns and new customers' needs.

Stuart MacKenzie says businesses that failed to pivot to online sales have been hit hard in his industry. (ABC News: Simon Goodes)

"Online sales-wise, every once in a while, whether it's a holiday season or something, we'll have discounts.

"Also having a product that's slightly different from everyone else's — we are certified organic and sustainable — that's a big thing in the eyes of a lot of people."

Mr MacKenzie is looking forward to expanding his distillery, which is currently inside his garage, to get a cellar door and start hiring.

Stuart MacKenzie distils from his purpose-built garage. (ABC News: Simon Goodes)

Omicron 'worse than lockdowns'

While low case numbers and government subsidies like JobKeeper and JobSeeker kept many businesses afloat throughout much of the pandemic, the surge in Omicron cases after those supports ended has been a game-changer for some.

Business confidence plummeted in December to a level lower than during the Delta outbreak, while consumer confidence was also dampened.

Even for booming businesses like Ms Jolapara's and Mr MacKenzie's, the dip in their online revenues was noticeable, alongside navigating surging inflation and supply chain disruptions.

Jinlan Zhou says her business is still struggling even without a lockdown. (ABC News: Patrick Rocca)

Jinlan Zhou is still coming to terms with the quietest summer she has seen in years.

Ms Zhou has been running a vegetarian takeaway shop, Blissful Station, in Box Hill, in Melbourne's east, for more than three years.

Despite business being down about 50 per cent, Ms Zhou has another problem.

Jinlan Zhou is having to help with the cooking due to a shortage of staff. (ABC News: Patrick Rocca)

"It's very difficult to hire staff because of the border closures," she said, adding she sometimes has to work as a chef.

This week, the federal government announced the international border would completely reopen to those who are fully vaccinated later this month, bringing much-needed relief to business owners like Ms Zhou who have struggled with labour shortages, as well as those who rely on tourists as customers.

Some missed out on government support

According to the latest credit card spending data from the Commonwealth Bank, there are signs of a consumer rebound since mid-January as the Omicron wave seems to have peaked on the east coast.

The figures appear to show the Omicron downturn was a very brief, sharp drop-off from a strong post-Delta rebound in spending — especially on eating and drinking out — around the Christmas and early January period.

Spending on transport, recreation and personal care has since bounced back, while card payments for drinking and eating out are also again comfortably back above pre-pandemic levels.

Belinda Allen says the outlook for 2022 is cautious but there are many positive tailwinds for the economy. (ABC News: John Gunn)

"Across the board, there is resilience in consumer spending," said CBA senior economist Belinda Allen.

Since the Omicron wave struck, state and territory governments have offered, or are offering, various support packages, vouchers and rent relief for businesses, while the federal government has been accused of "stepping aside".

But some sole traders are still missing out.

Nikki Dagostino says the music industry has been given "crumbs". (ABC News: Hugh Sando)

Perth musician Nikki Dagostino, aka Little Miss Squeezebox, said many in her industry could not meet the turnover criteria to receive support because they simply do not make enough money.

She has been dealing with gig cancellations since restrictions were brought back to WA after a backpacker travelling from Queensland tested positive to COVID in late December, resulting in nightclubs being shut down and some music festivals cancelled.

Ms Dagostino said she used to have hundreds of gigs a year, but now she works on a "hit and miss" basis, even when restrictions have been eased.

"When we hear the word of lockdown, restrictions or transition period, that means an immediate loss of work for me," she said.

"I have a mortgage; being a home owner, it's very pressing."

Nikki Dagostino has been constantly dealing with performance cancellations or delays throughout the pandemic. (ABC News: Hugh Sando)

Apart from patrons being spooked by Omicron, Ms Dagostino said the WA border closure had also hit the entertainment industry, forcing many lighting and audio technicians to move into the booming mining sector, which is suffering labour shortages. 

"We are losing massively. We rely on tourism and that clientele to come to the venues," she said.

Ms Dagostino hopes the WA borders can open soon, so she can tour again.

Read the story in Chinese:  阅读中文版本 or Bahasa Indonesia: Baca dalam Bahasa Indonesia

Watch the story on The Business tonight at 8:45pm AEDT on ABC News Channel, or stream on ABC iview.

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