TOMS Shoes founder Blake Mykoskie offered up the final keynote at SXSW today. Mycoskie founded the company after an inspirational trip to Argentina where he ran into a group of people donating used shoes to kids without them. After returning to the US he asked himself the question – why must such services be addressed only by charity? Why not start a for-profit company to address the same thing?
The concept is simple: Buy a pair of shoes, and a second pair is donated to needy child somewhere in the world – in other words “one for one.” The popularity of the ‘one for one’ concept exploded – from a small Los Angeles boutique to nationwide distribution the company has received massive media attention and experienced massive growth. To date, over a million shoes have been donated so far.
More on TOMS history and details can be read about here, but Mycoskie offers key take-a-ways’ for other business and some exciting news on the future of his one for one model.
Essentially, giving doesn’t just feel good, it’s a great business strategy in three key ways:
1) When you incorporate giving in a real, authentic way – your customers become your best marketers. It may even mean spending less money, or even no money on advertising as customers and social media take care of it for you.
2) Additionally, you attract and retain fantastic employees who care. The greatest competitive advantage, Mycoskie says, is committed employees. Even by small scale events – like offering a day off to volunteer, you build a team cohesiveness that just can’t be replicated in other ways.
3) Finally, you attract fantastic partners – Two of TOMS most rewarding partners, Ralph Lauren, who designed shoes for TOMS radically changed the outlook of other major designers, and AT&T wouldn’t have been seen value in TOMS had it not been for the giving component of how the company operates.
What’s the next of “one-for-one?”
Standing next to a 6 foot tall “mystery box” on stage, Mycoskie boldly decalred that TOMS is no longer a shoe company. In June, TOMS will unveil a new concept (literally hidden the box) that will make them the “one for one” company.
Exactly what was in the box is unknown, but the presumption is that TOMS will give it away when a similar product is purchased.
There’s no question that TOMS has hit upon a phenomenal new way to raise funds for projects in needy areas and it’s likely to inspire other companies to make this kind of giving a key aspect of how they do business. Fantastic and inspired.