Interesting article. This is a new style of entrepreneurship that recognizes that consumers, and mainly millennials, are more interested in the story behind a product than the product itself.
Interesting article. This is a new style of entrepreneurship that recognizes that consumers, and mainly millennials, are more interested in the story behind a product than the product itself.
Very interesting article.
Perhaps this is a bit of a reach, but I suspect that this could be why middle-market products have been getting destroyed as millennials flee either to premium brands with a story or in the opposite direction to value brands that have no story but make up for it with price point. There is no desire to be in the mushy middle.
Example; we would rather splurge on a $5.00 coffee from Starbucks made with fair-trade, micro-loan enabled, elite premium roasted Arabica beans harvested and prepared by caring artisan craftsmen, or a < $1.00 coffee from a gas station, than we would purchase an 'ok' perfectly tasteful $2.50 coffee from Dunkin Donuts.
Middle market enterprises are definitely being slaughtered (see Macy's, J.C. Penney, etc.). An alternative explanation for middle-market enterprises across all industries declining could simply be the drop in spending power from the middle-class. But I think we've seen in other areas (such as politics) that middle-of-the-road solutions are…out of vogue. Food for thought.
Another factor to consider might be social media. According to Pew Research, 65% of adults use social media and 90% are from the 18-29 age range (http://www.pewinternet.org/2015/10/08/social-networking-usage-2005-2015/). Millennials make up a large share of social media traffic and the ease at which a user can “re-tweet” or “share” provides expansive exposure to inspiring stories. While I am not sure how effective social media campaigns have been for Cotopaxi, the story of its brand is exactly the type of story that would get “likes” and positive “shares” on social media where consuming millennials are hooked on a new, exciting idea that not only allows them to help a social cause but also receive something fashionable in return.
Millennials are likely getting information, news, and advertisements online and not as much through traditional mediums like television or magazines. Moreover, the online “pay per click” model means that if the story is not interesting, you are not getting paid. Thus, brands like Macy’s will be buried while brands like Cotopaxi will be praised because the story matters more.
Based on this article, I think the most admirable part of Cotopaxi’s business model is that they encourage their employees to dream up, and then implement, creative designs directly onto the products that they sew. Part of the problem with Toms shoes is that the design is a “spin” on Argentine shoes, but Argentinians are removed from the shoe-making and design process. Here, the Cotopaxi business model not only provides jobs (with fair wages and hours) but also encourages Filipinos to remain directly involved in the creative process.
Based on this article, I think the most admirable part of Cotopaxi’s business model is that they encourage their employees to dream up, and then implement, creative designs directly onto the products that they sew. Part of the problem with Toms shoes is that the design is a “spin” on Argentine shoes, but Argentinians are removed from the shoe-making and design process. Here, the Cotopaxi business model not only provides jobs (with fair wages and hours) but also encourages Filipinos to remain directly involved in the creative process.