Not Just Toms

 

Toms is introducing an effort that helps other businesses with a social purpose, Toms Marketplace. The online store, which will be introduced Tuesday, will feature more than 200 products from about 30 companies and charities.

(The Globe And Mail http://www.theglobeandmail.com/report-on-business/small-business/sb-growth/sustainability/toms-launches-hub-for-socially-conscious-goods/article15261786/)

Toms started in 2006 with what was then a novel idea: for every pair of shoes it sold, it would donate a pair to a child living in poverty. Along with donating more than 10 million pairs to date, the company spurred a trend of “buy one, give one” companies. This idea helped Toms gain a lot of good social reputation. Now, Toms come up with another idea, which I consider it a really good idea, that is, posting other companies or charities goods on its website.

With careful choice, the goods that are sold on Toms website, such as Yellow Leaf Hammocks and Stone and Cloth etc. are all, considered to be complement of Toms shoes.

Helping others is helping themselves. Toms knows this principle really well. By carrying on this idea, Toms are sure to win more positive social reputation, which can actually be regarded as a point of difference when similar items are available on the shelf.

Also, according to Blake Mycoskie, the founder of Toms, the complement of this idea can also draw men to the site. From here we can know that though Toms claimed to “help” other business, they just help the ones that do “help” themselves.

Online Shopping–Nigeria’s Freeway

 

IT IS impossible to shop in Lagos, Nigeria’s commercial capital… The roads are terrible; the traffic is crazy; the city has only a handful of shopping malls between 20m people; and when you get to a mall many of the branded products on sale are fake. Rich people go to New York or London to shop. “They have no other option,” says Mr Hodara.

(blog post on the Economics: http://www.economist.com/blogs/baobab/2013/11/shopping-nigeria)

Nigeria, a country in the South Africa, with a population of more than 170 million, has a big trouble when it turns to daily shopping. Customers face terrible traffic, while the supermarket suffer a lot from the supply shortage. This is an opportunity for online shopping.

Comparing to the existing retails, online shopping has its significant advantage.

1. Less investment. Running online shops cuts the cost of renting a store and hiring staffs, which is a good way to accumulate profit.

2. Reduce the risk of supply shortage. With greater capacity, shop owners can adjust selling orientation according to the change of supply in time.

3. Board customers segment. Nigeria has a rapidly-growing economy and a population of 170m, most of them young. Young people always appeal to online shopping. Also Rich people who were focused to go to New York or London to shop is another big customer group.

However, the main problem of opening a online shop are, on one hand, as the blog post on Economics mentioned, that the warehouse is difficult to find. On the other hand, the security of the assets is also a big problem for owners who want to rend a warehouse in South Africa.