Let’s face it, in retail, discounting only gets you so far. Margins quickly become so thin that even volume can’t put things in the black. The solution? Unite and conquer with exclusive designer products.
To boost their bottom-line “Holiday Cheer,” retail giants Target and Neiman Marcus recently announced their Target + Neiman Marcus Holiday Collection. The unlikely partnership between a mass merchandiser and a luxury purveyor brought as many as 50 limited edition designer products to each company’s shelves—everything from handbags to home goods, with prices ranging from $7.99 to $499.99. Designers include Tory Burch, Marc Jacobs, Alice & Olivia and Robert Rodriguez.
For Target shoppers, offering curated designer collections usually found in NM will be a big draw for cache-hungry, price-conscious consumers. Neiman Marcus can expect a whole new channel of shoppers who traditionally avoid often pricey NM goods. Both retailers can look to benefit from their exclusive offerings. And both can stem showrooming, wherein shoppers use physical stores to try out products and get information before buying elsewhere online for a lower price.
The unlikely union of Target and NM finally puts price on the back burner. It’s a once-in-a-lifetime marriage of two retail giants that not only creates product buzz but makes designer items more accessible. “Ultimately, to be able to engage a brand wherever and whenever you want is where we’re headed,” says Jeff Jones, Target’s chief marketing officer.
Target pulled out all the stops to promote its Target + Neiman Marcus Holiday Collection. On its Bullseye View website, consumers can become intimately acquainted with the crafty crew of Council of Fashion?Designers of America members and visionaries.
Target also launched a number of videos. Creating the biggest buzz ever in promoting the NM/Target link up was a move by Target to take over a full episode of the ABC show, ”Revenge.” The Sunday, November 11 episode aired with limited commercial breaks, as fans watched a show-within-a-show complete with twists and turns. Target worked directly with the “Revenge” creative team to develop the five-part vignettes, dubbed “The Gift of Revenge,” to showcase the Target + Neiman Marcus Holiday Collection. The vignettes featured such fan favorites as Nolan Ross, Jack Porter, Charlotte Grayson, Declan Porter and Amanda Clarke.
“Our partnership with Neiman Marcus propelled us to go well beyond the traditional approach and develop marketing initiatives that reflect the historic nature of this collaboration,” said Jeff Jones. “Working with the team at ABC has been invigorating. We’re confident the November 11 episode of ‘Revenge’ will blow our guests away and provide an unforgettable element of surprise this holiday season.”
If you’re looking to score big this holiday season, take a lesson from Target and Neiman Marcus. Yes, discounting will draw customers, but exclusives and opening up new channels will do even more.
Image courtesy of Target "A Bullseye View"
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