Target and Neiman Marcus Partner for the Holiday Season
Target and Neiman Marcus have announced they will be partnering during the 2012 holiday season. Together they will market a joint limited edition holiday collection, designed by high name fashion icons. Over 50 products will be available at both retailers. Items will be priced between $8-$500.
Many are familiar with Target’s limited edition designer strategy, where the company launches limited quantities of designer products created specially for Target. Recent offerings have been so popular they’ve crashed the Target e-commerce website. These offerings are typically priced well below typical designer prices.
On the other hand, Neiman Marcus typically offers fashions 10 to 100 times more expensive than those found at Target. Usually these items are also not designed specifically for Neiman Marcus.
The two brands decided to join forces because the two companies saw overlap between their consumers. Target found that many of their shoppers go to Neiman Marcus for their higher fashion clothing, but the same consumers go to Target for groceries and pick up lower-priced designer items made for Target as well.
The partnership is rather interesting considering that many Neiman Marcus shoppers is extremely high income. At the same time, we need to remember that the same consumers have to go to other retailers to purchase groceries and household items such as paper towel or even bath tissue.
Given the large range of pricing that they’re listing these holiday items at, $8 to $500, I would assume that the lower price items would be offered at Target and the higher priced items be offered at Neiman Marcus. This pricing strategy would make the most sense. It would keep Neiman Marcus from devaluing their company, but also entice new consumers that may have never entered Neiman Marcus before to shop there.
Due to the still recovering economy, Neiman Marcus is looking for new ways to reach additional consumers. This partnership with Target may be a great way for them to do so. Neiman Marcus is just hoping that consumers will see they offer products at prices that they can afford, especially during the holiday season when shoppers are typically spending more and purchasing more luxurious materials.
The one thing that I do not like about the partnership is the logo, which I feel isn’t reflective of the great design that should come of this partnership.
How do you feel about the partnership?
– Bryan Nagy