I recently picked up my first pair of TOMS shoes. For those of you not familiar, (ex-Amazing Racer) Blake Mycoskie started TOMS in 2006 with a goal of using his company to get free shoes to those in need. Their business model stands on a one-for-one model where every pair purchased leads to a pair given to a child in need. Since its inception, TOMS has given over 10,000 pairs of shoes to children in Argentina, and 50,000 + to children in South Africa.
The shoes themselves are interesting– simple, yet strangely charming. Many of them are canvas based with a simple rubber sole. My pair (pictured on the Great Wall of China on the left… they LOVE to travel) has a canvas upper with a rubber sole meshed with rope– for extra traction. It is fair to say that, in a real turn of events unforeseen by the masses, Mycoskie and his TOMS crew is bringing the loafer back!
Facilitated such fast growth is the popularity of their social impact model. They just released an AT&T commercial, Dateline (I believe) just told their story on national TV, and their founder recently visited the white house for a social entrepreneurship award. No word on what pair Barack rocks in his spare time, but I would imagine its probably the University Ash Rope (also seen, surprisingly, to the left…).
One interesting thing to watch regarding TOMS in the future is how their business model will transition as they continue to grow in size and popularity. With company/cause combinations like TOMS, the drive behind sales is more complex than just social impact. Specifically, people buy TOMS because they are contributing to an important cause, but also because they are different in doing so, and want to be seen by others as such. In a strange way, it’s kind of like Indie Rock following. One of the things many groups struggle with is how they maintain their original fanbase shifts as their popularity explodes. Those who got into the band early see the group as changed from their newfound popularity as their fan-base shifts. For the early adopters, liking the group is not nearly as exciting when you are not the only one. With regards to TOMS, those who got into the show for its social cause might be less impressed by those who get on the bandwagon later (the ‘Peters,’ if you will), seeing them as groupies rather than purists. At a certain point, companies like TOMS reach a tipping point where, for the early adopters, the TOMS they first supported is not the TOMS they see now, even if the mission is the exact same. A shift in TOMS’ network of association will shift the way TOMS is seen by it’s potential customers.
UPDATE: After reading this post, my friend Karin wrote me saying, “Nice post but I don’t know if I agree with that indie band perspective. I like to think that people who support causes like this aren’t doing things just for the sake of being different.” I agree with her, so I want to add a clarification.
I think our motivations are often mixed and multi-faceted. People buy TOMS because they buy into the cause, but not ONLY because of this. For example, if I made a show company with the same mission, but my shoes looked like pieces of newspaper formed over a piece of shaky cardboard, I would be out of business fast because my customers would avoid shoes that are not attractive do not serve their function sufficiently. The same is the case with TOMS. I do not think that the primary motivation behind buys TOMS is appearing unique (and this specification motivation would be stronger with following the next big band), but I think that is one of many factors. Consequently, if that motivation disappears as TOMS fails to provide the unique experience for the customer, I think its possible that some people will look to fulfill their altruistic motivation in other ways.







