Target’s decision not to deploy its most potent weapon for the most crucial sales period of the year follows its failed collab with Neiman Marcus last Christmas season. Despite an ambitious collection — 50 products from 24 top designers — the collab fell flat with consumers. Weak sales forced Target to sell off excess inventory by slashing prices, something that in past years would seem unthinkable for the savvy purveyor of cheap n' chic.
By selling the collaboration through the first weeks of December, Target executives hoped to drive people into stores during a relatively slow period in the holiday season. The collection was meant to create excitement and allow Target to shift holiday shopping to something other than the lowest price.
In the end, Target executives say the Neiman Marcus partnership didn’t work for a variety of reasons. First, it was complicated, both from a marketing and inventory perspective. It was unclear whether Target and Neiman Marcus were selling the designers or selling themselves. Also, Target’s decision to start marking down merchandise left Neiman Marcus, a luxury retailer, in an awkward position since they sold the same products.
1 comment:
The products in that line were pricey and low quality with little market appeal. I really wanted to buy something from that line, but there was nothing worth buying even at the slashed prices. A $60 plain Marc by Marc Jacobs scarf? Really? I think most would have gone crazy for a $100-125 Marc by Marc Jacobs handbag instead. I could go on but I won't. Who does this market research anyway? People who live under rocks?
Post a Comment