Toms Shoes

Toms (stylized as TOMS) is a for-profit

company[3][4][5] based in Los Angeles,
California.[6] Founded in 2006 by Blake
Mycoskie, an entrepreneur from Arlington,
Texas,[7][8][9] the company designs and
markets shoes as well as eyewear, coffee,
apparel and handbags.
 TOMS Shoes, LLC

Type Private

Industry Footwear and

accessories
Founded 2006

Founders Blake Mycoskie

Alejo Nitti
Headquarters Los Angeles,
California[1]
Area served Worldwide

Products Shoes, eyewear,

coffee and apparel
Revenue $392 Million(2019)[2]
Owner Jefferies Financial
Group Inc
Nexus Capital
Management LP

Brookfield Asset
Management Inc

Number of 500
employees

Website www.toms.com (http

s://www.toms.com/)

The company was taken over by its

creditors: Jefferies Financial Group Inc,
Nexus Capital Management LP, and
Brookfield Asset Management Inc in
December 2019, and founder Mycoskie
ceased to be an owner.[10]
Company history
Blake Mycoskie visited Argentina in 2002
while competing in the second season of
The Amazing Race with his sister.[11] He
returned on vacation in January 2006, and
met a woman who was volunteering to
deliver shoes to children. Mycoskie offered
to help and has cited the shoe distribution
experience, and the many shoeless
children he encountered, as the birth of his
idea for his eventual company.[12]

He decided to develop a type of alpargata

(a simple canvas slip-on shoe that is
popular in Argentina)[13] for the North
American market, with the goal of
providing a new pair of free shoes to youth
of Argentina and other developing nations
for every pair sold.[14] According to
Mycoskie, Bill Gates encouraged him by
saying that the lack of shoes was a major
contributor to diseases in children.[15]

Upon returning to the U.S., Mycoskie sold

the online driver education company that
he was running for $500,000 to finance
Toms Shoes.[14]

The company name is derived from the

word "tomorrow,"[16] and evolved from the
original concept, "Shoes for Tomorrow
Project."[17] Mycoskie initially
commissioned Argentine shoe
manufacturers to make 250 pairs of
shoes. Sales officially began in May
2006.[14] After an article ran in the Los
Angeles Times, the company received
order requests for nine times the available
stock online,[14] and 10,000 pairs were sold
in the first year. The first batch of 10,000
free shoes were distributed in October
2006 to Argentine children.[8][18][19][20]

In 2007, the company launched its first

annual "One Day Without Shoes" event,
which encouraged participants to go
shoeless for one day in order to raise
awareness about the impact shoes can
have on a child's life. The event has had
corporate sponsors such as AOL, Flickr,
and the Discovery Channel.[21]

In October 2007, Toms Shoes received the

People's Design Award, as determined by
an online popularity contest by the Cooper-
Hewitt, National Design Museum[22]

By 2011, over 500 retailers carried the

brand globally and in the same year, Toms
launched its eyewear line.[23] By 2012 over
two million pairs of new shoes had been
given to children in developing countries
around the world. The Daniels Fund Ethics
Initiative at the University of New Mexico
has described the company as an example
of social entrepreneurship.[14][24]

The company launched TOMS Roasting

Co. in 2014, and with each purchase of
TOMS Roasting Co. coffee, the company
works with other organizations to provide
140 liters of safe water (equal to a one-
week supply) to a family in need that lives
in a coffee-producing region.[25] In 2015,
TOMS Bag Collection was launched to
help contribute to advancements in
maternal health. Purchases of TOMS Bags
help provide training for skilled birth
attendants and distribute birth kits
containing items that help women practice
safe childbirth.[26][27]

In June 2014, the company announced

that Mycoskie was looking to sell part of
his stake in the company to help it grow
faster and meet its long-term goals.[28] On
August 20, 2014 Bain Capital acquired 50%
of Toms. Reuters reported that the
transaction valued the company at $625
million; Mycoskie's personal wealth
following the deal was reported at $300
million.[3] Mycoskie retained 50%
ownership of Toms, as well as his role as
"Chief Shoe Giver". Mycoskie said he
would use half of the proceeds from the
sale to start a new fund to support socially
minded entrepreneurship, and Bain would
match his investment and continue the
company's one-for-one policy.[29][30]

Business model

"One for one"

Toms' business model is known as the

"one for one concept" model, which is
referring to the company's promise to
deliver a pair of free shoes to a child in
need for every sale of their retail
product.[31] The countries involved have
included Argentina, Ethiopia, Guatemala,
Haiti, Mexico, Rwanda, South Africa and
the United States.[32] The business has
grown beyond producing shoes and has
included eyewear and apparel in Toms
product lines. The company uses word-of-
mouth advocacy for much of its sales,
centering its business focus on corporate
social responsibility. Part of this model
originally involved a non-profit arm called
"Friends of Toms" that recruited volunteers
to help in the shoe distributions in foreign
countries.[33] Toms trademarked the
phrase "One for One" to describe its own
business model.[34] Toms has received
criticism from the international
development community[35][36] who have
stated that Toms' model is designed to
make consumers feel good rather than
addressing the underlying causes of
poverty.[37] Criticisms have also included
whether or not the shoe donation is as
effective as a monetary donation to other
charities.[38] Toms responded to this
criticism by moving 40% of its supply
chain for shoe donation to countries they
actively give in. Toms presently
manufactures shoes in Kenya, India,
Ethiopia and Haiti.[39]

A 2014 paper in the Journal of

Development Effectiveness studied the
effect of Toms Shoes on local shoe
markets, and did not find any statistically
significant effect, although analysts and
the paper's authors noted the study was
limited in scope and time-scale.[40][41][42]

More recent papers such as "Shoeing the

Children: The Impact of the TOMS Shoe
Donation Program in Rural El Salvador"
suggest harmful effects and even an
economical decline in local production in
the target countries.[43] "Looking at cross-
country data on used-clothing imports
across African countries, he finds that
these imports explain roughly 40% of the
decline in production in the region and
50% of the decline in employment over the
period 1981–2000." The same study about
Toms Shoes specifically states
psychological and therefore social
consequences in El Salvador: "In-kind
donations may exhibit negative
externalities on the psychology of
recipients, unintentionally fostering a
sense of dependency on outside donors."

In 2019, Amy Smith, TOMS' Chief Giving

Officer, announced in their 2019 Impact
Report that the company would no longer
be following the "One for One" business
model that TOMS pioneered. This was her
statement:
"We made the decision to decouple our
impact from the One for One model we
pioneered, and to expand our giving
portfolio to include impact grants. This
way, we can support organizations
working to address some of today’s most
pressing issues."

Focuses for Corporate Responsibility

Author Daniel H. Pink described the

company's business model as "expressly
built for purpose maximization", whereby
Toms is selling both shoes and its ideal.
Toms' consumer market are purchasing
shoes and also making a purchase that
transforms them into benefactors for the
company.[44] Another phrase used to try to
describe the business model has been
"caring capitalism".[45] Part of how Toms
has developed this description is by
incorporating the giving into its business
model before it made a profit, making it as
integral to the business model as its
revenue generating aspects.[46] Business
tycoon and Virgin Group founder Richard
Branson wrote of the company's business
model in his book Screw Business as
Usual, "They look for communities that will
benefit most from Toms based on their
economic, health and education needs
while taking into account local business
so as not to create a correlating negative
effect." He also commented on Toms'
expansion into eyewear in order to help the
nearly 300 million people who are visually
impaired in developing nations.[47]

The company's shoe distribution partners

have focused on distributing shoes in
areas where health and social benefits of
the shoes would be the highest. For
example, in Ethiopia the shoes are
intended to help prevent a soil-borne
disease that attacks the lymphatic system
and which largely affected women and
children.[15] Toms sunglasses are sold
with the One for One model, however it
does not necessarily provide glasses only
to those in developing countries. The One
for One model includes putting money
toward medical treatment, eye surgeries
and prescription glasses. Toms works with
the Seva Foundation among other partners
to accomplish this.[48] The first countries
that Toms implemented its program were
Nepal, Cambodia and Tibet.[49] The original
three designs, according to Leigh Grogan,
were "The stripe on the temples represents
the buyer; the stripe on the tips represents
the person whose sight is being helped,
and the middle stripe represents Toms,
which brings the two together."[50][51]
Shoe distribution
Shoes have been given to children in 70
countries worldwide, including the United
States, Argentina, Ethiopia, Rwanda,
Eswatini, Guatemala, Haiti and South
Africa.[52] Toms are sold at more than 500
stores internationally, including Neiman
Marcus, Nordstrom, and Whole Foods
Market, which include shoes made from
recycled materials.[53]

A story by LA Weekly priced the

manufacturing cost of a pair of Toms
Shoes at $3.50-$5.00 in U.S. dollars, and
noted that the children's shoes given out
by the company were among the cheapest
to make, which is not necessarily apparent
to consumers. According to garment-
industry author Kelsey Timmerman, many
people he spoke to in Ethiopia were critical
of the company, saying that they felt it
exploited the idea of Ethiopian poverty as
a marketing tool. An Argentina-based
shoemaker agreed, saying that the
imagery used by the company was
manipulative.[54]

Employees of Toms travel to different

countries on "Giving Trips" to deliver shoes
to children in person. In 2006, Toms
distributed 10,000 pairs of shoes in
Argentina.[55][56] In November 2007, the
company distributed 50,000 pairs of shoes
to children in South Africa.[57] As of April
2009, Toms had distributed 140,000 pairs
of shoes to children in Argentina, Ethiopia,
South Africa as well as children in the
United States.[53] As of 2012, Toms has
given away over one million pairs of shoes
in 40 countries.[52][58]

Campus clubs

Students attending colleges across the

United States have created TOMS campus
clubs. As of March 20, 2014, 281 campus
clubs existed in the United States with
another dozen located in Canada.[59] By
comparison, another nonprofit
organization known as Lions Club
International was established in 1917 and
is known for working to ending the cause
of blindness, reports 400 Lions’ campus
clubs in 42 countries.[60]

Philanthropy

Partnerships

In 2009 Toms partnered with the Charlize

Theron Africa Outreach Project to create
limited edition shoes, and used profits to
benefit education and medical support in
remote areas of Africa suffering from AIDS
outbreaks.[61] Toms has also produced
shoes with a handlebar mustache symbol
in place of the traditional Toms symbol in
support of the Movember Foundation.[62]
Toms is a supporter of the charity charity:
water, with which it has partnered with for
several years, including its WaterForward
project, which aims to bring clean water to
underdeveloped countries.[63] An
additional partner charity is FEED, a charity
where a consumer will purchase a pair of
shoes and the company will donate twelve
meals to impoverished schools in addition
to a pair of shoes for impoverished
children.[64]
The major mission of Toms is that a
business, rather than a charity, would help
their impact last longer. In his speech at
the Second Annual Clinton Global
Initiative[65] Mycoskie states that his initial
motivation was a disease called
podoconiosis—a debilitating and
disfiguring disease which causes one's
feet to swell along with many other health
implications. Also known as "Mossy Foot",
podoconiosis is a form of elephantiasis
that affects the lymphatic system of the
lower legs. The disease is a soil-
transmitted disease caused by walking in
silica-rich soil.[66] Toms currently works
with factories nearby where they perform
some of their shoe drops.[67]

Influence

The Tom's 'One for One' model has

inspired many different companies to
adopt similar concepts. Warby Parker,
launched in 2010, donates a pair of
glasses to someone in need for every pair
of glasses it sells. The social business
Ruby Cup uses a 'Buy One Give One' model
for their menstrual cup venture, benefiting
women in Kenya.[68] A Bristol chiropractic
center influenced by Mycoskie's Start
Something That Matters[69] book started
donating £1 to Cherish Uganda for every
appointment attended.[70] citizenAID North
America (http://www.citizenaid.us)
launched in 2018, donates life-saving
training to US teachers and educators.

Focus on the Family

In July 2011, Toms founder Blake

Mycoskie participated in an event
sponsored by the group Focus on the
Family.[71][72] After being criticized for
supporting a socially conservative non-
profit, Mycoskie posted an apology on his
website stating that he and his handlers
had not heard of Focus on the Family
before participating in the event and
decided it was a mistake. He also stated
that he and the company support equal
human and civil rights.[73][74]

See also
 Greater Los Angeles portal
 Fashion portal
 Companies portal

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External links
U.S. official website (https://www.toms.
com/)
Retrieved from
"https://en.wikipedia.org/w/index.php?
title=Toms_Shoes&oldid=1134180209"

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