The Rollercoaster Journey of Catalina Mendoza and The Tote Library
A Sudden Shift
Catalina Mendoza, cofounder of The Tote Library, never imagined crying on social media would be part of her entrepreneurial journey. When her husband informed her in April about the staggering 145% tariffs on US imports from China, it set off a chain of events that would test their business acumen and resilience. The couple, who entered the luxury tote bag market in 2022, found themselves grappling with a crisis they didn’t see coming.
Starting from Scratch
Catalina and her husband had no prior experience in running a business when they launched The Tote Library. While Catalina was an art student and her husband had studied marketing, the world of entrepreneurship was new territory for them. Their initial vision was simple: transform Catalina’s artistic designs into functional yet aesthetically pleasing tote bags. After crafting their first prototype, they turned to Taobao, a Chinese online shopping platform, to find a supplier. Communicating through Google Translate, they launched their first collection with five bags per design and relied heavily on social media for promotion.
Leveraging Social Media
Initially, social media was instrumental in their marketing strategy. By utilizing trending audio on platforms like TikTok, they started to gain traction. Though not all videos went viral, one notable post caught significant attention, leading to immediate sell-outs of their products. Interestingly, while based in Europe, nearly half of their sales came from the US market, showcasing the global reach of online platforms.
The Ambitious Expansion
As business boomed, the couple dreamed of scaling their operations. They planned to broaden their product line beyond tote bags and envisioned opening a warehouse in the US for faster shipping. To propel this growth, they invested heavily in US marketing strategies, spending over $32,000 on ads and gifting more than 1,000 bags to creators. This bold move was meant to solidify their presence in the American market, which they deemed crucial for their growth.
Facing the Tariff Crisis
However, their plans came crashing down when the new tariffs took effect in April. Overnight, sales from the US plummeted to zero as they had to remove the country from their Shopify store. With their products already positioned at the high end of the market, increasing prices to mitigate the tariff impact was not an option. The sudden loss was devastating for Catalina and her husband, who had put in so much effort to grow their brand.
Navigating Uncertainty
In May, a temporary 90-day grace period lowered the tariffs, allowing them to cautiously reopen sales to US customers. Yet, this uncertain status puzzled their clientele. While their US sales were unpredictable and shaky, the emotional toll of the situation impacted their business morale significantly. To their surprise, the TikTok video featuring Catalina’s genuine tears went viral, inadvertently boosting brand awareness across Europe.
A Strategic Shift
Facing a tumultuous market, they decided to redirect their focus toward European consumers. Catalina began contemplating local production, potentially in Portugal, to gain better control over the supply chain. Although this move would likely raise costs, the benefits of proximity and controllable logistics became increasingly attractive.
The Emotional Toll of Entrepreneurship
Amid these challenges, Catalina grappled with the emotional weight of running a business that was their sole source of income. The anxiety of covering payroll and supporting their small team became pressing concerns. As expenses mounted, they realized that lifestyle adjustments would be necessary. Catalina, originally from Chile, worried that she might have to forgo her annual trips home, highlighting the personal sacrifices often demanded in entrepreneurship.
Reflecting on Resilience
Catalina acknowledges the emotional difficulty of presenting a positive face for the brand while wrestling with her own feelings of uncertainty. Yet, this turbulent experience has taught her invaluable lessons about the importance of diversifying markets. As she adapts to these new realities, she’s focused on moving forward while remaining hopeful that resilience will carry them through the storm.
