Toms founder says business is all about giving
The founder of US shoe brand Toms tells Abid Rahman how giving can be good for business
Founder of the California-based cult shoe brand Toms, Blake Mycoskie, is impossible not to like. He's smart and well-connected, but what makes him stand out is his evident commitment to making a difference with his fast-growing start-up.
Mycoskie is in town for the launch of Toms' autumn-winter shoes and eyewear collection at Lane Crawford and Shoespace, and an auction of shoes designed by artists such as James Jean and Charles Munka to raise money for the Changing Young Lives Foundation. He's also here to advocate the "one-for-one" business model Toms is founded on: for every pair of shoes bought, the company gives away a pair to someone in need.
Toms, which is a shortened version of "Shoes For Tomorrow", began in 2006 when Mycoskie was travelling in Argentina. "I came across so many children who had no shoes. Their feet had cuts and were infected, and I had the idea to start a shoe company that would serve as a sustainable way of giving," he says.
Success has come quickly and since then Toms has given nearly two million shoes to those in need. A crucial part of the Toms story has been the creation of a loyal following of customers who help promote the company by word of mouth. Mycoskie's model has led to him being fêted by many political and business leaders, including Bill and Melinda Gates and US President Barack Obama, but he puts the success of Toms down to simplicity.
"The reason why Toms has had such success in such a short of space of time is that it is simple," he says. "It's not a formula, it's not a gimmick. It's just one for one; you buy a pair, we give a pair. It's very transparent and it works. It's an easy story to tell, too, so the story is easily shared among our customers."
Mycoskie insists he's a committed entrepreneur, but he believes in what he calls conscious capitalism. "We are not a charity; we're a business. There are lots of charities out there, but when I started Toms I wanted to create a new model. It's a for-profit business, where we use the profits not only to give but also to invest in new products so we can grow the business and the giving side."