Veja Case

After reading this article, I have a lot of respect for Kopp and Morillion, the Paris business school graduates who created basically the first eco and ethical-friendly shoe and accessory line. Before entering the fashion industry, they traveled the world visiting and studying sustainable development projects in various industries. I believe this sort of rotational learning is key to organizational success, and plan to pursue a rotational fellowship in a hospital as my first job post graduation.

Veja was built around three main values: using ecological inputs, using fair trade cotton and latex and respecting workers’ dignity. Their business model is altruistic and strictly aligned with their values in an industry that has long had a negative connotation. They don’t spend any money on advertising, so they are able to purchase more expensive materials that ensure fair-labor and trade laws are being kept. They also pay above average salaries and provide many work-life benefits such as paid overtime and annual bonuses that competing companies historically have not offered.

Strategically thinking, I can pinpoint a few decisions they made that were key to their prolonged success. First, they set themselves up to be successful by carefully studying the international landscape and choosing a location with materials and production near each other.

Targeting trendy sneaker boutiques instead of customers who were already accustomed to buying ethical products was smart because they could make a higher margin on each sneaker and target a market with more disposable income. They also held zero stock of their shoes, and only produced according to orders placed six months in advance. Partnering with ASF of France allowed them to reduce costs in printing, preparing, packing, and sending all online orders while maintaining the mission of the company to help others.

Seeking certification of Fairtrade for the company was important since it spawned an entire industry of...