TOMS Shoes

In The Wall Street Journal’s article, “In Toms' Shoes: Start-Ups Copy 'One-for-One' Model,” writer Kristi Oloffson discusses how the business model of Toms Shoes is being followed by other small companies. Toms’ appeal to consumers is that they promise to give away one pair of shoes to the needy for every one sold. This marketing technique has been successful because it relies on consumers’ consciences. Out of 1,057 U.S. adults surveyed in July, 80% said they would rather support a brand that is “associated with a good cause over another that’s similar in price and quality.” The way that Toms’ has been able to successfully give away about one million pairs of shoes to children in need is to charge almost double what the shoes would typically cost. Although the shoes can run anywhere from $44 to $98, people do not seem to have a problem buying them. Toms’ overall advertising message, their one-for-one initiative, is possibly their primary hook in their promotion. Tom Lumpkin, chair in entrepreneurship at Syracuse University, believes that if Toms’ one-for-one model did not exist, “you could argue that Toms would be just another shoe store.”

Meanwhile, other small companies around the United States have tried this strategy, although their profits may be less. A Brooklyn, N.Y., company called Out of Print donates one book to Books for Africa every time it sells one of its t-shirts. Another New York retailer, Warby Parker, makes a monetary donation to Restoring Vision, a nonprofit organization, for every pair of glasses he sells. Because of the recession in the U.S., the one-for-one business model does seem risky. However, spreading awareness of these positive contributions through networking has served as a strong force for these companies, and many have succeeded.

The one-for-one business model is a perfect example of corporate social responsibility. While Toms’ is making a profit, the company also focuses on its contribution to the well-being of underprivileged citizens. Toms’ is one of the first companies to have this marketing strategy, and it seems to be working very well for them. People of all ages are seen wearing Toms shoes on a daily basis. As a merchandising management major, I believe that Toms influence on other small companies will be a positive contribution to society. The marketing technique is different, but it definitely is a great idea.

http://online.wsj.com/article/SB10001424052748704116004575522251507063936.html?mod=googlenews_wsj