{"id":3143,"date":"2015-12-08T16:18:21","date_gmt":"2015-12-08T21:18:21","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/patagonia-accidental-success-through-a-deliberate-mission\/"},"modified":"2015-12-08T16:18:21","modified_gmt":"2015-12-08T21:18:21","slug":"patagonia-accidental-success-through-a-deliberate-mission","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/patagonia-accidental-success-through-a-deliberate-mission\/","title":{"rendered":"Patagonia: Accidental Success Through a Deliberate Mission"},"content":{"rendered":"
\"Mount<\/a>
Mount Fitz Roy; Patagonia, Argentina (backdrop for Patagonia’s logo)<\/em><\/figcaption><\/figure>\n

– Business Model –<\/u><\/strong><\/p>\n

\"Yvon_Chouinard_by_Tom_Frost\"Patagonia was founded by Yvon Chouinard, a mountain climber and environmentalist, in 1973. While the company\u2019s roots are in equipment for rock and alpine climbing, Yvon became an accidental apparel mogul when fashion models in Manhattan began wearing his fleece vests. [1] The company is wholly owned by Yvon and his wife Malinda and generated approximately $600 million in revenue in 2013. [2]<\/p>\n

Mission + Product Offerings
\n<\/u>Patagonia\u2019s mission statement is to \u201cbuild the best product, cause no unnecessary harm, and use business to inspire and implement solutions to the environmental crisis.\u201d The company\u2019s products include (i) men\u2019s, women\u2019s and children\u2019s apparel and accessories (ii) bags and packs (iii) sporting gear and (iv) Patagonia Provisions: responsibly-sourced, healthy snacks such as jerky, bars, salmon, soup and dry goods.<\/p>\n

Bucking the trend of fast-fashion retailers, Patagonia has successfully cashed in on the rapidly growing post-Great Recession consumer segment that has abandoned impulse buying and conspicuous consumption in favor of goods that offer enduring worth. With every purchase, the company promises its products will live longer than competitors\u2019 and to repair, resell, and recycle apparel and gear as necessary. Even the Megacorps have been paying attention: Patagonia recently entered into odd-couple pairings with Walmart to advise on reducing packaging and water use in its supply chains and Nike to help craft clear, quantifiable standards for environmentally responsible clothing production. [2]<\/p>\n

Charitable Donations
\n<\/u>While CSR for most companies is treated as a cute sideshow to salve the consciences of higher-ups, social responsibility has remained at the core of Patagonia\u2019s business model. Since 1985, Patagonia has given 1% of revenue to grassroots environmental organizations. In 2002, Yvon and friend Craig Mathews, owner of the Blue Ribbon Flies, created a non-profit organization dubbed 1% For The Planet to encourage other businesses to do the same.<\/p>\n

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\n– Operating Model –<\/u><\/strong><\/p>\n

Materials Sourcing
\n<\/u>Since 1996, Patagonia has selected materials in the most responsible manner feasible: clothing is made with organic vs. conventional cotton (although supply costs were initially tripled due to the change), certain lines of fleece jackets are made exclusively from recycled soda bottles, products are durable and timeless enough to require less frequent replacement, 192 styles are fair-trade certified, and as of Fall 2014, all down products contain 100% traceable feathers that can be linked back to birds who were never force-fed or live-plucked. While these practices support Patagonia\u2019s underlying mission, they also serve as effective branding: Patagonia\u2019s high-quality and conscious aura have covertly driven up consumers\u2019 willingness to pay, thereby benefiting the company\u2019s bottom line. [3]<\/p>\n