Michelle Moran's business plan: Do well by persuading shoppers to do good.
And the plan is about to be tested. Her two clothing lines, imparted with the lofty mission of educating women about breast cancer and heart disease and raising money for nonprofit groups fighting the illnesses, appear this month at Saks Fifth Avenue in Boston and nearly 50 area T.J. Maxx stores.
''My goal is to use fashion as a vehicle to help women," Moran, 38, said. ''Not just as a promotion, but every day."
Her aim may sound better suited for a nonprofit venture than a money-making entity. But Moran's Allston company, Clothes for a Cause, is decidedly for profit. Founded in 1996, the company first turned a profit in 2001. Last year, it generated millions of dollars in revenues. Because the company is private, however, Moran does not disclose its financial details.
Moran commits as much as 10 percent of all her wholesale sales, or roughly 5 percent of the retail price, to a cause. So far, that hasn't translated into huge sums. The American Heart Association expects to raise at least $16,500 from the sales of the Red Dress Collection at Saks Boston store. The Big Bam!, a nonprofit dedicated to providing mammograms and breast cancer treatment for uninsured women, is expecting its first check for $7,300 from sales of the Pink Ribbon Collection.
''I think the potential for this project is massive," said Janice Bonadio, the president and founder of The Big Bam!
The move to imbue Clothes for a Cause with a social conscience is as much about smart business as it is about doing good. Fashion goliaths such as Jones Apparel Group, Ralph Lauren and Tommy Hilfiger dominate department stores while small clothing makers fight for slivers of space on the store floor. At a time when retailers are struggling to offer something different from their rivals and consumers are increasingly concerned about corporate responsibility, Moran's social mission gives her an edge over the thousands of other small clothing makers knocking on retailer's doors.
''It opened the door," said Bill Lynch, Saks's senior vice president of merchandising. ''Whether we decide to buy her clothes ultimately depends on the product."
Though few companies go as far as Moran in promising to donate a percentage of all sales to nonprofit causes, corporate marketing in the name of philanthropy is on the rise. Corporate sponsorship of nonprofits reached $922 million last year, up from $125 million in 1990, according to IEG Sponsorship Report, a Chicago newsletter that tracks corporate partnerships with nonprofit groups. Saks donates 2 percent of all sales during a four-day stretch in September to nonprofit groups as part of its ''Fashion Targets Breast Cancer" campaign.
Companies like Target Corp. are moving beyond annual promotions to link their brands with broader charitable commitments. Through its Take Charge of Education program, Target donates 1 percent of sales made at its stores with a Target Visa or Target Guest Card, giving about $2 million a week to the nation's schools. In perhaps the most extreme example, actor Paul Newman's firm, Newman's Own, donates 100 percent of its profits to educational and charitable organizations and has raised more than $150 million for nonprofits since 1982.
T.J. Maxx, which is operated by Framingham's TJX Cos., plans to support Clothes for a Cause's Pink Ribbon Collection with plenty of signage in its stores. The line features ready-to-wear walking and running suits, cotton polo shirts and capri pants in colors from aqua to black, and bear just a hint of the pink ribbon in their designs. Down the line, TJX will also feature the Red Dress Collection at its Marshalls stores. Shoppers can expect to see both collections in the fall on a major shopping network, though Moran can't disclose which one.
''It's nice to know the money goes somewhere to help people," said Fran Marroni, as she perused the Red Dress Collection at Saks with her sister Anne Marroni and their friend Patti Abrams. ''It makes you feel good about shopping."
Tags attached to the pieces at Saks give information about heart disease and stroke. Pamphlets on a nearby table provide more information about heart health. Anne Marroni bought a $278 red silk jacket, and Abrams said she'd likely return for the collection's $190 halter dress.
Research shows that one-time or annual promotions do boost sales. More comprehensive efforts can improve a company's image. But the social good remains secondary behind more typical considerations, including price, quality and store location, said Mark Feldman, executive vice president at Cone Inc., a marketing firm that specializes in cause branding.
''That said, in a time when it is harder than ever before to differentiate yourself from rivals with similar brands and products, cause-related marketing is rapidly becoming a cost of doing business," Feldman said.
As companies team up with nonprofits to further their commercial interests, however, nonprofit executives are wary of being exploited. Bonadio, of The Big Bam!, said she receives a stack of 20 proposals each month from retailers seeking her permission to use the group's name or logo in connection with some promotion. In most cases, she said, she turns them down because the companies offer little to nothing in return for using Big Bam!'s name.
''The dominant perspective among charities is that some money is better than nothing," said Peter Frumkin, an associate professor of public policy at Harvard University's John F. Kennedy School of Government.
For charities, however, there's more to gain than money. The Red Dress Collection furthers the mission of the American Heart Association to raise awareness about heart disease and about the organization, said Heather Maloney, spokeswoman for the association's Boston division. The group sent emails to 15,000 volunteers, donors and invitees to its annual gala event, set for Saturday, letting them know where they can find the red dresses.
''This is one more way to reach out to a new group of women," Maloney said.
On a recent evening at Saks, three 20-something friends browsed through the Red Dress Collection. They stopped at the nearby table to flip through the heart health pamphlet. Tean Wong, a 27-year-old fashion school graduate, said the idea was smart. But she thought the collection should include shoes, makeup, and a broader range of styles. She and her friends found the Red Dress Collection a bit mature for their tastes.
No sale. But Moran still sees it as a small victory.
''If a woman gets the information, even if she doesn't buy anything, well, I think we've achieved something," she said.
Naomi Aoki can be reached at naoki@globe.com.![]()