Source: http://www.vancitybuzz.com/2015/10/vancouver-friendship-socks-gifting/
Socks and friendship- when were these two words ever used in the same sentence? Perhaps rarely in the past, but that may change with the growth of a Vancouver-based Friendship Socks Company that strives to connect friends in a different way.
Friendship Socks operates on a one-to-one concept: when you purchase a pair of socks, you can also send a pair to a friend on Facebook, surprising them with a gift to brighten up their day. The hope is for the friend to remember you every time they open their sock drawer and strengthen connections between friends who may be living far apart.
However, it costs $30 for 2 pairs of socks, which is very high compared to socks sold in most retail stores. This company is clearly operating using the differentiation strategy instead of the cost leadership strategy. Like Jensen Tung mentioned in his blog, producing an entirely unique and innovative product may be nearly impossible, especially in an environment where low cost seems to be the driving source of success for most companies. However, I think there is still a chance for this company to thrive, from looking at past examples of companies with similar goals, for example, Toms. Furthermore, this gifting service will be able to solve the frustrating process of deciding and shipping presents to friends on their birthdays or during Christmas. In today’s fast-revolving world where texting and emailing are the primary forms of maintaining connections between friends, a physical item may just be what is needed to strengthen those friendships.