Leather lotion helps to both clean and aid in leather health, so to speak. It moisturizes and helps maintain the elasticity of leather, thusly contributing to longer shoe life. Is it essential to use only Allen Edmonds leather lotion on Allen Edmonds shoes? No, but for the beginner it would be advised to use their products. From brand to brand the most commonly found ingredient in most leather lotions appears to be neatsfoot oil.
Does lotion soften the leather? Yes.
Does it help the shoe conform to the foot? Yes, provided the shoe fit properly in the first place. Lotioned leather offers maximum pliability to the leather so it will help.