Allbirds’ Strategy: Collaboration over Competition

Good for Business. Good for the Planet.

Recently, I was surprised to learn that Allbirds, an eco-friendly shoe company, shared its carbon footprint calculator with the entire fashion industry. The calculator uses what’s called a life cycle analysis to determine the footprint of each material in a particular product. Its a fairly technical tool and I would argue it was a key resource that gave Allbirds an edge on the sustainability side of things.

So why would Allbirds share something that gave them a competitive advantage? Doesn’t this threaten their position in the market?

I’ve copied the message from Allbirds below because I think it best demonstrates their thinking on this.

“Secrets, secrets are no fun, especially when they could help the public make better decisions for the planet. So we’re giving away our Carbon Footprint tools to the entire fashion industry. We know that sharing proprietary information might not make the most business sense. But the global climate crisis is bigger than business. And if competition got us into this mess, perhaps collaboration can get us out.” — Allbirds press release

Allbirds recognizes this may seem like an odd business decision, but ultimately I think they’ve made a calculated decision that driving the industry overall to be more sustainable will be good for their bottom line. If they can shift the conversation to sustainability then sales of their shoes will go up.

It’s also an opportunity for them to punch above their weight and be seen as a true leader in this space. This is the kind of genuine climate action that sets Allbirds apart from other brands that might be accused of greenwashing.

And I’m speculating here, but they might also hope that this will increase demand from the industry overall for certain sustainable materials, which will lead to increased supply and lowered prices.

In summary, Allbirds’ move will serve the public good (making manufacturing more eco-friendly) as well as their own interests. It’s a win-win.

I expect we’ll see more companies following suit and choosing collaboration over competition as a business strategy.