Toms Shoes Business Model

Inbound Logistics

Design: Products are planned and designed. The products are:

Shoes: Alpargata, Bota, Cordones etc.

Eye-wear: Different types of glasses.

Miscellaneous products: T-shirts, sweatshirts, caps etc.

Required Raw materials: Canvas, rubber, dye, pig suede, plastic, fiber etc.

According to TOMS official statements, only eco-friendly and recyclable materials are used for the production of the aforementioned products. Moreover, TOMS offers a vegan collection to the consumers. The difference between vegan production line and normal production line is the materials that are being used in producing the shoes. In the vegan line, the shoes canvases are made by 33% post-consumer plastic waste. The usage of post-consumer plastic waste portion

Meanwhile, TOMS Shoes claims to have no official advertising department and very little effort toward traditional advertising at all. Obviously, the success of TOMS’ model is not generated from the stylish design, quality or comfort of the shoe they produce. Instead, TOMS’ Business model is successful due to its unique cause marketing campaign. Since the establishment, TOMS’ advertising has been entirely unconventional. They have been featured in only one commercial, since their inception. Alternatively they focus on gaining media coverage through their giving actions and creating blogs and “Facebooking”, thereby creating “a community, not a company”. As a result, in 2010, the TOMS Founder & Chief Shoe Giver gained the support of 300,000 people to join the “One Day without Shoes” movement. Moreover, TOMS manages to highly engage its fans in their marketing campaigns. Hence, those fans become the bearers of TOMS message and also they are easily converted to TOMS “repeat/full-time customers”. To put it briefly, due to TOMS strong cause marketing, Customers feel part of the TOMS family rather than participants in a simple business transaction, thus, they are drawn in by the cause rather than the product