Innovation

Green Toys Inc. has been built around sustainability, typically an afterthought of most businesses. Their business model of using green practices to create an industry of their own has only laid a path for others to implement themselves. The innovation emerged from a conversation between the co-founder, Robert von Goeben, and his wife. She mentioned the lack of eco-friendly options for children’s toys. That spark mixed with Robert’s experience as a toy designer was the start of Green Toys.

The process starts with high-density polyurethane, a type of plastic, that was previously recycled as milk jugs at local waste management locations throughout California. Next, soy ink, derived from the renewable source of soybeans, is used to color the resins. Each and every lot of resin is tested before entering the manufacturing facility to ensure a high level of quality. From there, local partners make and assemble the toys, then package them into 100% recyclable packaging.

Inspiration

Robert, along with Laurie Hyman, a classmate he met while studying business at the University of Southern California, set out to develop Green Toys. Initially, Robert had to remortgage his home to acquire capital to fund the budding company. Like many other California startups, Green Toys too was ran out of Robert's garage. They started with basic children’s toys based on timeless designs, but have now moved into other markets including a kitchen play line that is food and dishwasher safe.

According to my interviewee, Shahram Baradan, who serves as the quality and compliance project manager, one of the major motivations to start Green Toys was the continuous string of recalls and lingering concerns regarding toys being made overseas. These unfortunate events opened a window of opportunity that Robert and Laurie quickly took advantage of. Today, consumers want to know where products come from, what they’re made of, and even where the materials are sourced. This commitment to transparency has moved far past it's early stages into a global brand.

One of the major insights that I gained from the project was Shahram's commitment in the company's mission and purpose. Being a student, I find myself relentlessly playing the student card, trying to obtain insight, advice, and perspective from people already in that next step of their lives. After speaking to Shahram, I gained a perspective that I hadn't previously allocated much weight to. Being a part of a company that you truly believe serves a bigger purpose. In my future job search, I plan to integrate this into my decision process.

Overall impact

Green Toys has been profitable from the start and continues to drive the space as the world's leading manufacturer of safe, environmental, US-made products for children. Society benefits from this innovation in two major ways. The business world now has a real-world case study to learn from and adopt to create change in their own industries. Second, is that parents now have a safe, domestic alternative they can provide to their children.

The benefit to the environment is the use of recycled materials to produce products that would otherwise end up in landfills. Additionally, a holistic view of their supply chain has reduced waste throughout the entire process. Short–term effects are quantified by a ticker on the website, representing the current 51 million milk jugs that have been repurposed. Long-term effects will be in the years to come as other companies recognize the potential of Green Toys business model and use this groundwork to fuel other startups.

Business benefit

The case study that Green Toys sets for society, whose business model is to recycle materials, add other renewable materials, and ensure high levels of quality and safety, is the benefit of the innovation. Customers of Green Toys know that there will always be cheaper alternatives, but continue to buy these higher priced products. Why? Because they believe in the movement that Green Toys has set in motion. A movement where sustainability isn't something that you just bolt onto an existing business for public relations or marketing campaigns, but at the base of the business model. At the core where it serves as one of, if not the reason that idea will commercialize. Green Toys has been profitable from the start, attracted an outside investor, and continues to drive the space as the world's leading manufacturer of safe, environmental, US-made products for children.

Social and environmental benefit

Society benefits from this innovation in a handful of ways. First, lets talk about the jobs created by using local manufacturing facilities in the greater San Francisco area. These plants are so close in fact, that employees like Shahram drive by them on their daily commute. Next, we can discuss the new option parents have when trying to supply their children with toys that ease their concerns. The last major benefit I would like to point out is the real-world case study Green Toys is, showing that this type of business model is viable.

The environment benefits every time a Green Toy is taken up to the register, two fold. One being that garbage is constantly diverted from landfills to instead, create these classic toys. The second being that less environment conscious competitors toys are in return, not being purchased. This results in virgin materials being used more conscientiously, for things recyclables just cannot support. This double impact may not seem like a big deal, but the current count is 52 million milk jugs and counting, all while supporting the US economy throughout the entire process.

Interview

Shahram Baradaran, Quality and Compliance Project Manager