Socializing the Supply Chain

Hershey’s is moving to independently sourced rainforest-friendly cocoa – at least for its its Bliss line of chocolate – but it took two years of Facebook campaigning, 50,000 signatures on a Change.org petition, 100,000 letters from concerned customers, and finally threat of a Super Bowl ad to finally pressure the chocolate giant to change its practices.

McDonald’s is phasing out gestation crates and pink slime after similar consumer activism campaigns was too loud and too persistent to ignore.

Social media cynics doubt the value of hitting the “Like” button on Facebook, but these are clear signs that the collective value of the consumer voice has hit an unprecedented pitch, albeit in the form of clicks and tweets.

Before the internet, brands owned their own voice. They wrote it on the packaging, in TV ads, on billboards.  In the social media era, brands don’t own their own voice anymore and that’s just a reality. Social media is making consumers too loud and organized to ignore, and they’re demanding a level of transparency big brands have never had to reckon with.

So they can try to spend a lot of money trying to control their voice and hide behind marketing campaigns or they can say, “this is who we are and this is what we stand for.”

The cool thing is that it’s no longer about pretending to be perfect or convincing you a  sip of Nestle Quik will take you to chocolate powder paradise. In the social media era, it’s more important to be just be honest.

Patagonia exemplifies this shift in brand thinking. They aren’t the most organic or the most green retailer, but they’re extremely clear about the way they do things. Should they go fair trade? Make their clothes in the US or somewhere else? They open the door to their customers to tell them what’s important. Nobody’s perfect, but let’s have a dialogue, let’s have a conversation about it. This is nothing short of a revolution.

At Totsy, not every brand we sell is 100% fair trade or 100% organic cotton, but we give as much space as possible to brands that are working hard to have better supply chains because it’s important to us.

There’s a social side to our supply chain values as well.  For toys we feature on Totsy.com, the whole goal is to promote products that develop or improve or encourage interaction between kids and parents. We promote more wooden puzzles than video games, to give two extreme examples, and we won’t sell toy guns. Is it something a kid can play with siblings or parents? Does it encourage education? Is it bringing more value than just a toy product?

For other products, like makeup and heels and sexy underwear for little girls – we refuse to sell those brands. There’s a time when you’re a kid, and there’s a time you’re adult. Under seven years old is definitely the time when you’re a kid. Maybe some parents wouldn’t take issue if we sold these products, but we feel that we have a voice here and it’s important.

You can buy anything you want on the internet, so you don’t need Totsy to do what Amazon already did for shopping. For parents in particular, they’re usually discovering brands they didn’t know about because they didn’t have a child before, so there’s an education process behind what we feature. We curate very highly and only sell 15 new brands a day, but we make sure you never miss out on the best brands.

We have a very clear set of values for what makes a brand the best, and we make sure we don’t even promote products that are not aligned with those values.

A full 30% of new customers find Totsy by word of mouth, social networks or the blogosphere. We think that’s a testament that Totsy moms like what we stand for. Read about Totsy being green and tell us what you think on our Totsy Facebook page.

Want to take our site for a stroll? We plant a tree in honor of your child with your first purchase.

A few days at the World Entrepreneurship Forum…

As I am getting ready to leave Singapore after spending 5 days at the World Entrepreneurship Forum, it’s time to look back and ask myself the question “What did I witness?”.

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In a constantly changing world, where communications between people are easier than ever, are frequent and often overwhelming or lacking a true meaning, it has been refreshing to sit in a room with 150 world entrepreneurs, top leading educators and politics.

Sometimes it only take one word, one meeting, to may be change the way millions are living.

On this subject I want to relate one of the great commitment of the Forum. Few of you may know but 40% of the world population (over 3b people…) live without sanitation. This is a problem with multiple ripple effects on health, education, and obviously human dignity. Let’s be clear, speaking of toilet is not sexy… But here it’s not about PR, being sexy or shining in city conversations.

One admirable man I met at the WEF is Jack Sim, founder of the NGO World Toilet Organization (WTO). The goal of WTO is to give sanitation to those 40% of us that do not have access to it. It’s a big issue, at very large-scale, and part of the Millennium Developement Goals.

One of Jack’s ideas is that we need to make toilets cheap and affordable. One entrepreneur here found a way to make toilets for $30. But that is still way to expensive for the 3 billion people I mentioned. What we need is a $3 toilet… Hard or impossible to achieve?

It reminds me a conversation I had with Hans Reitz, CEO of Grameen Creative Lab. Adidas was approached by Professor Yunus, Nobel peace prize and dear friend of mine, to solve a health issue. Kids in poor countries walk barefoot and get contaminated by a very bad disease in the form of a worm that lives in their intestine and consumes the already very limited calorie and vitamin intake. But same problem here, you have ripple effects as those kids cannot even study properly as their brain and memory are weakened by the indirect effect of the worm… So Yunus went to see Adidas and asked them to create a $1 pair of shoes (!). First engineers said it would be impossible. But after many major internal long working sessions the Adidas team and CEO became convinced they could do it. And guess what, it’s coming on the market soon.

Let’s come back to our toilets. We had in the room Jack, our entrepreneur, and someone who runs a business of plastic injection. They met at the WEF and found a way to produce this $3 toilet.

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The World has Problems, many, that often seems impossible to resolve when they are at such large scales. But guess what, this is why we are here, to
SOLVE those problems and make the world a better place for all, not just for the “I” we call “us”.

We are all connected, bonded together, not through the “Become A Friend” on Facebook, but through a deeper and much more real level. Some call it Love.

Let’s call it our Human Dignity. That’s what I witnessed.

Singapore, Nov 6th 2011

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