TOMS: new idea, new product, new incentive

TOMS shoes is a company established in Santa Monica, California. I consider TOMS to be entrepreneurial.  The company has expanded internationally, serving customers from all over the world (500 stores nationwide). TOMS designs lightweight shoes that come in a variety of colours and patterns. The shoes are based on the Argentine Alpargata design, the signature look for TOMS.  With each pair of shoes sold, TOMS donates a pair to a child in need.  Since the launch in 2006, over a million pairs of canvas shoes have been given to children in more than 20 countries worldwide.  Furthermore, TOMS hosts annual projects such as One Day Without Shoes, challenging people to go a day without shoes and to raise awareness for children who go without shoes everyday. To engage people, TOMS hosts “Shoe Drops”, where employees and volunteers get an opportunity to deliver shoes to children first hand around the world.   Along with shoes, TOMS recently started  TOMS eyewear. Similarly, every pair of eyewear sold, a pair is donated to a child in need. The company’s product innovation attracts demand in the market and gives consumers a great incentive to purchase their products.  Although much of the money earned by TOMS is donated, the total revenue after donations still comes out to a substantial amount. TOMS earned “$4.6 million in revenue from its first 115,000 pairs of shoes” (Hoye,2009). With TOMS’ high product and social innovations, it is no doubt that TOMS exhibits many characteristics of entrepreneurship.

http://www.thefalcononline.com/article.php?id=6589

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