By 2011, over 500 retailers carried the brand globally and in the same year, Toms launched its eyewear line.[21] 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][22]
By 2011, over 500 retailers carried the brand globally and in the same year, Toms launched its eyewear line.[21] 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][22]
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[58] 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.[59] Toms currently works with factories nearby where they perform some of their shoe drops.[60]
Mycoskie sold his online driver education company for $500,000 to finance Toms shoes.[14] The company name is derived from the word "tomorrow",[9] and evolved from the original concept, "Shoes for Tomorrow Project".[16] 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.[7][17][18][19]
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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[58] 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.[59] Toms currently works with factories nearby where they perform some of their shoe drops.[60]
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.[37] Another phrase used to try to describe the business model has been "caring capitalism".[38] 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.[39] 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.[40]
Blake Mycoskie visited Argentina in 2002 while competing in the second season of The Amazing Race with his sister.[12] He returned on vacation in January 2006, and noticed that the local polo players were wearing alpargatas, a simple canvas slip-on shoe that he began to wear himself and which are the model for the original line of Toms Shoes.[13] They are made from canvas or cotton fabric with rope soles, but Toms makes theirs with rubber soles.[9] Mycoskie said that when he was doing volunteer work in the outskirts of Buenos Aires, he noticed that many of the children were running through the streets with no shoes on. He decided to develop a type of alpargata for the North American market, with the goal to provide a new pair of shoes free of charge 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]
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.[47]
Toms' business model is known as the "one for all 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. The countries involved have included Argentina, Ethiopia, Guatemala, Haiti, Mexico, Rwanda, South Africa and the United States.[26] 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.[27] Toms trademarked the phrase "One for One" to describe its own business model.[28] Toms has received criticism from the international development community [29][30] who have stated that Toms' model is designed to make consumers feel good rather than addressing the underlying causes of poverty.[31] Criticisms have also included whether or not the shoe donation is as effective as a monetary donation to other charities.[32] 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.[33] 
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