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Expansion of ethnic beauty further illustrates Target’s aggressive plans

BY Antoinette Alexander

WHAT IT MEANS AND WHY IT’S IMPORTANT — Target is getting aggressive in a lot of ways. Canada. Big holiday plans. And now a plan to take a greater share of the ethnic beauty business.

(THE NEWS: Target unveils new ethnic beauty products at NYC event. For the full story, click here.)

Yes, a lot of retailers have an ethnic beauty aisle — or at least a few shelves, anyway — but few bring the kind of cache and panache to the category that Target can bring. Close to half of Target stores carry the multi-ethnic beauty assortment and, in looking at some of the data, it is clear to see why Target is serious about ethnic beauty.

According to the "Ethnic Hair, Skin and Cosmetic Products in the U.S." report released earlier this year by Packaged Facts, the market for health and beauty care products targeted to minorities posted growth of nearly 13% during 2010, and continued to advance at a healthy pace in 2011 to approach $3 billion.

With the rapid expansion of racial and ethnic minorities in the United States over the next 10 years, ethnic health and beauty care product marketers have a fast-growing target market. Hispanic, African-American and Asian population growth is far outpacing that of whites, with minorities expected to collectively be the majority of the U.S. population as soon as 2042, the report stated.

And, compared with many consumer packaged goods categories, ethnic hair and beauty care products even did remarkably well during the recession, continuing to chart steady growth even though U.S. minorities were especially hard hit by the economic downturn, the report stated. The loyalty of African-American and other minority communities to their HBC products kept the market on track to resume impressive growth as soon as economic conditions began to improve.

As noted earlier, Target is getting aggressive in a lot of ways — not just in ethnic beauty.

The retailer is gearing up for the opening of its first Target Canada stores next spring and has already announced plans to bring its REDcard Rewards program to Canada. Canadians are not only well aware of Target but they are clearly getting excited about the retailer’s upcoming foray into their country.

A recent survey by Kantar Retail and TNS Canada found that 75% of Canadians are aware of the retailer. Furthermore, 43% of Canadian consumers said that they were likely to shop at Target Canada for grocery or health and beauty aids, and 50% were likely to shop at Target Canada for general merchandise or apparel.

Then there’s the upcoming holiday season. This holiday season, the retailer is enticing shoppers with new initiatives, including price match, exclusive gift offerings and shoppable advertisements. It is even offering free WiFi in all Target stores to provide shoppers with better access to its mobile app, and enable guests to redeem Target mobile coupons and scan QR codes throughout the store.

Aggressive … and smart.

What are your thoughts on Target’s growth initiatives, and what do you think will be Target’s next move or major area of focus?
 

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Newell Rubbermaid announces new executive appointments as part of restructuring plan

BY Rebecca Haughey

ATLANTA – In addition to an extensive structural makeover, dubbed the "Growth Game Plan", Newell Rubbermaid president and CEO Mike Polk announced a new leadership team that includes outside appointments to several executive positions.

Among these new appointments is Joe Cavaliere, former SVP customer development for Unilever, who will serve as chief customer officer at Newell Rubbermaid. In this new role, Cavaliere will help globalize the company’s customer development organization, and expand customer partnerships and collaborations around the world. Among his 29 years of experience, Cavaliere helped catapult Unilever to a top 5 ranking in the consumer good industry during his nine-year career at the company.

Richard Davies — also formerly of Unilever, as head of global insights — will join Newell Rubbermaid as chief marketing & insights officer. Davies brings more than 30 years of marketing, insights and brand strategy experience to the new position.

Mark Tarchetti, former head of global corporate strategy at Unilever, will join Newell Rubbermaid in January as chief development officer — leading the new development organization. Tarchetti founded international consulting firm Tarchetti & Co and has been supporting the development of Newell Rubbermaid’s new business strategy over the last year.

"The structural and leadership changes we are announcing today are bold steps that are critical to unlocking our full growth potential," Polk said.

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Survey: Retailers plan to spend more on e-commerce this year

BY Alaric DeArment

DURHAM, N.C. — More than two-fifths of retailers plan to increase spending on online marketing this year, and nearly half have invested in new mobile apps, according to a new survey.

The survey, titled "Loading the Sleigh: Marketers’ Plans & Expectations for the Holiday Season," conducted by Retail Systems Research on behalf of Bronto Software over the summer, included 179 respondents, mostly with annual sales of between $51 million and $999 million. Bronto makes software for retailers and other commerce-focused companies.

Sixty-eight percent of respondents said they expect sales to increase from last year, with more than a quarter saying sales will increase by more than 50%. At the same time, 21% said they would "significantly" increase online marketing budgets compared with 2011, while 22% plan to slightly increase them.

"Retailers clearly recognize the need to market online during the holidays, when they are under the most pressure to capture consumer wallet share," Bronto CEO Joe Colopy said. "This study shows that these marketers have made important investments over the year, so they are poised to accomplish their goals. And while mail is a more established channel and has inherent technologic advantages for communicating with consumers, marketers are getting ready to use mobile and social to break out of the pack."

Retailers have made several investments in e-commerce marketing. Forty-nine percent have invested in mobile applications, while 46% have invested in new e-commerce platforms. Fifty percent have found new email service providers, while 43% have invested in mobile website optimization.

But as Colopy suggested, most are budgeting for email marketing, with 87% saying they would spend on that this year and more than half saying they expect the overall volume of emails they send to increase over 2011.

As many as one-third plan to wait until after Black Friday weekend to begin their first promotions, and all are planning to offer free shipping offers. 

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