Target stores turned 50 years old with a celebration of its “cheap chic” approach that emphasizes style and design in an attempt to distinguish itself from its competitors.
The retailer has convinced dozens of nationally-known designers such as Rodarte and Jason Wu to step into big box store territory with lines that are as fashionable as they are cheap
Often considered the number three brand behind competitors Wal-Mart and K-Mart, the Target brand store just celebrated its 50th anniversary with a press day to preview its coming 2012-13 holiday collection. Few people are aware that Target was founded in 1962, the same year as competitors Wal-Mart and K-Mart got started and in the beginning Target realized that it might not be able to dominate the low-cost marketplace of value-based retailers. As an alternative strategy, Target executives embraced a “cheap chic” approach that emphasized style and design in its products, stores and advertisements in an attempt to distinguish itself from its competitors.
Target’s cheap chic plan paid off and now 50 years later Target has encouraged dozens of nationally-known designers like Rodarte and Jason Wu to move into the big box store territory with lines that are fashionable and still cheap. Although Target’s prices might be a bit higher than its competitors, the products, from beauty and bags to clothing and shoes, are often a bit nicer and more stylish.
Target marked its 50th anniversary with the press day to show off its holiday collection that included designs by 24 members of the Council of Fashion Designers of America, including Prabal Gurung, Marc Jacobs and the pick of Michelle Obama, Tracy Reese. The holiday collection is a collaboration with the luxury department store Neiman Marcus and follows a long string of successful partnerships that Target has launched over the years, starting with architect Michael Graves in 1999 and with fashion designer Isaac Mizrahi in August 2003. In the beginning, designer lines weren’t as popular as they are now and some wondered if the strategy would only serve to water down or cheapen Mizrahi’s high-fashion branding.
Jeff Jones, Target’s executive vice president and chief marketing officer said “It was the same product everywhere, but we wrapped them in this design-driven aesthetic that made them feel different. We had to carve out a different space, and we couldn’t just be another company competing just on price.” The competition in the cheap chic arena continues to increase today, but Target may be able to stay ahead of competitors in the future by increasing its designer partners and expanding the variety of products it offers. For the time being, it looks like Target may be able to retain its crown as the pinnacle of cheap chic today.
