STATE Bags

A Company That Does More Than Retail

Authors

Janine Shieh

Janine Shieh

Fenisha Kapadia

Fenisha Kapadia

Grace Nastasi

Grace Nastasi

Armand Longo

Armand Longo

Katherine Diaz

Katherine Diaz

School

Rutgers Business School

Rutgers Business School

Professor

Joe Markert

Joe Markert

Global Goals

4. Quality Education 10. Reduced Inequalities 16. Peace, Justice and Strong Institutions

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Summary

STATE Bags’ business innovation is the generous distribution of a fully stocked bag of school supplies to a child in need for every bag purchased on their website. The goal of STATE Bags is to light a spark in these underprivileged kids’ minds to get them to see that their surroundings don’t define them, and that regardless of the cards they were dealt circumstantially, they can defy any odd they desire.

Innovation

STATE Bags’ business innovation is the generous distribution of a fully stocked bag of school supplies to a child in need for every bag purchased on their website. STATE Bags founders, husband and wife Scot and Jacq Tatelman, have created an online service in which they distribute high-end backpacks, totes, and wristlets for a profit, and for every one bag sold, they voluntarily give a bag filled with necessary materials to a child in need. As Scot Tatelman disclosed during an interview with our team, STATE Bags is, “Not interested in a company where we are just selling stuff.” This multi-purposeful innovation emerged out of the experience that the Tatelman’s went through in their hometown of Brooklyn: They’d frequently see young children carrying their belongings in tattered garbage bags, something that the couple found to be heartbreaking and devastating. The couple decided to do something about this recurring event and paired their fashion-forward backgrounds with their philanthropic passions to ultimately create STATE Bags. STATE Bags’ purpose is to address the immediate needs of local children living with challenging, and in some cases critical circumstances. Their mission, as found on the STATE Bags website, is to make, “beautiful, well-made, inclusively cool product while using the power of business to give back and shift narratives around social injustices.”

A Company That Does More Than Retail

Inspiration

The original idea came about from the founders’ experience in underfunded neighborhoods. As they first-handedly witnessed hardship within their community, the pair strived to build a company that inspires children to believe in themselves, despite the poor circumstances they cannot control. The Tatelmans developed their innovation not only by perfecting their physical products, but also by expanding their philanthropy projects. After STATE Bags established their bag drop events that leave participating children with a renewed sense of spirit and new STATE backpack, the founders developed the #WhatDoWeTellTheKids projects that aim to educate children of the social injustices that exist in the world today. In sharing the stories of the marginalized populations across the United States, STATE Bags informs the children and therefore inspires them to take matters into their own hands and to produce change.

The inspiration of STATE Bags allowed for the Tatelmans to create a company in which they can give back to their community while still being a for-profit organization. STATE Bags also offers kids guidance from “Pack Men” and “Pack Women”, who are men and women who have walked in the same shoes as these children with financial struggles, which is something Scot or Jacq could never have understood themselves as they had both grown up in the suburbs. The goal of STATE Bags is to light a spark in these underprivileged kids’ minds to get them to see that their surroundings don’t define them, and that regardless of the cards they were dealt circumstantially, they can defy any odd they desire.

Overall impact

Since their inception as a benefit corporation in 2013, STATE Bags has made significant impacts on society. As a benefit corporation, their main intentions are to provide a positive influence on society, the environment, and the economy related to their goals. As referenced on STATE Bags’ website, Scot and Jacq Tatelman created their business “as a for-profit company with a nonprofit pedigree” for the greater good of the community. Part of their profits are donated to societal initiatives. To be specific, movements STATE Bags has engaged in include Houston recovery after Hurricane Harvey, helping with the water crisis in Flint Michigan, and the Chicago initiative, all of which fall under the #WhatDoWeTellTheKids movement created by STATE bags. During the interview with Scot, he mentioned how the company is interested in, “helping social issues… social injustices, telling stories, and sharing narratives,” meaning that distributing bookbags is only a small step of what STATE Bags wants to achieve. It is evident that STATE bags cares about the wellbeing of their community and because they have such a strong platform, the influence they have in the community and on other businesses continues to increase. Their goal to “raise awareness of the water crisis in Michigan”, as explained by Scot during the interview, creates an impact that is not only beneficial to the children, but also to others who live in the community.

In addition to these movements, STATE Bags holds motivational rallies where, as mentioned earlier, Pack Women and Pack Men travel to cities and encourage hundreds of underprivileged children. Their involvement is important in enhancing the quality of the bag drops because they are able to understand the struggles the children are currently going through. Additionally, their insight creates value in their presentation and rallies, as well as their ability to really connect and impact the kids. Scott states that he wants to serve the community in “a way that is not just about donations, material goods, but actually bringing in life changing experiences and role models.” These students will not only receive a brand new book bag, they will also leave the rallies feeling motivated, positive, and hopeful to not just continue dreaming but also achieve their goals and ultimately defeat their poverty.

Some of the short term and long term effects from this business are towards the kids they are supporting. The societal impact they have is connected with reduced inequalities and quality education. In the short term, kids will receive school supplies and bags that can help them throughout their time at school, but in the long term, kids will have an increased sense of self-efficacy and motivation to change their perceived future.

Business benefit

STATE Bags has attracted hundreds of people who are willing to help STATE’s plan of motivating and inspiring underprivileged children. Through the sales of STATE Bags, the “Pack Men” and “Pack Women” are able to provide the children with the tools for success and the self-efficacy to achieve what seems to be impossible. STATE Bags was started without any external stakeholders, only being supported by the friends and family of co-founders Scot and Jacq Tatelman. In doing so, STATE Bags is able to maximize the amount they are able to give back to the community.

Social and environmental benefit

STATE Bags has provided and continues to provide hundreds of children with materials needed to prosper in the real world, where such opportunities may not have been administered to these children if there were no interaction between the in-need children and STATE Bags. The company benefits their community as well as communities across the nation by not only generously donating these supplies, but also contributing to and participating in numerous charitable events such the ones mentioned earlier under the #WhatDoWeTellTheKids movement. The local society has benefited greatly from the work done by STATE Bags. STATE Bags is motivated to create a sustainable and equitable future for all kids that can be translated to influence other organizations to share a similar mindset and do the same.

Interview

Scot Tatelman, Co-Founder

Business information

STATE Bags

STATE Bags

New York City, NY, US
Business Website: https://www.statebags.com/
Year Founded: 2013
Number of Employees: 51 to 200

STATE Bags is an online service that distributes high-end backpacks, totes, and wristlets for a profit, and for every one bag sold, STATE voluntarily gives a bag filled with necessary materials to a child in need. Their mission is to make “beautiful, well-made, inclusively cool product while using the power of business to give back and shift narratives around social injustices.”