Hype Better Than Sales for Target-Neiman Marcus Tie-Up
By ANN ZIMMERMAN
In Ann Zimmerman's Wall Street Journal article titled "Hype Better Than Sales for Target-Neiman Marcus Tie-Up," the readers learn about the the two companies attempt to launch a designer collaboration in both stores. The plan is intended to be a collaboration of opposite styled companies merging together to sell a fifty-piece collection of clothing and accessories of big name brands.
The announcement earlier this year that told the world about this match-up was followed by a lot of hype. Hype that included several big-time advertising stunts, including commercials on primetime television.
Following these past Saturday's opening, the results seem to be below expectations. Despite, the high-profile publicity Target is failing to see the sales they saw last year with their series of Missoni products.
The holiday gift project is not living up to the hype and for a several reasons.
One main problem was addressed by "J.P. Morgan retail analyst Christopher Horvers when said he thought the collection prompted Target customers to shop in other parts of the store, which was one of the program's intentions. But he still said sales were less than expected."
Ultimately, neither side will release the details of their sales. Neiman Marcus claims that they are fairly pleased with the outcome, but nothing is actually known. However, based off the reads of analysts the likely hood of success seems incredibly small.
Personally, I do think this collaboration is a smart one. I think the companies are far to different and represent opposing styles, views, and pricing-techniques that the chance of success seems impossible. Neiman Marcus customers are not likely to shopping at Target, and vice versa. I do not see why they both do not just spend their time and money on things that suit themselves instead of merging.
Also, I think that the early showing of results is telling of how the rest of this operation will play out. The messy shelves to me serve as a representation of the cluster of collaboration that this plan is. Maybe I am wrong, but in my opinion, it just does not seem like a solid strategic plan.
Topics: Brands, Holiday discounts
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