October 8, 2012
Haute brands have gone mass! Consumers no longer need to shop at Bloomingdale’s, Nordstrom or Saks Fifth Avenue to come home with a luxury brand. We’ve seen Missoni at Target, DVF at GAP Kids and Vera Wang expand her offerings at Kohl’s. H&M has offered countless high fashion brands at affordable prices: Versace, Marni and Stella McCartney to name a few. And retailers have even more exciting new partnerships on tap this fall and winter (more on that in a minute).
But first, why do these high-end brands and everyday shopping destinations make such good business partners? There are plenty of reasons.
For retailers, these collections help create a sense of urgency and excitement for consumers that can translate into big sales numbers. Budget-minded fashionistas crashed the Target website for a full day trying to get their hands on limited-edition Missoni skirts, shoes, bags and even patio sets, and they camped out for first shopping dibs on the Versace merchandise at H&M. Items from both fast-selling collections were marked-up by enterprising shoppers on eBay in a flash.
Mass retailers raise their worth in the eyes of consumers by rubbing elbows with these haute brands. Having those fun, colorful, and classic Diane von Furstenberg prints in the window displays at GAP Kids instantly made the retailer seem more fashionable and desirable. Not to mention the reams of press that came from the high-profile collaboration—it was covered everywhere from The New York Times to the Today Show.
These exclusive brand partnerships also give retailers a reprieve from competing strictly on price. As a report from Wharton noted, Kohl’s shoppers don’t hesitate to pay $64 for a Vera Wang sweater even though that’s a high price point for the retailer. The cachet of the brand name makes consumers feel the goods are worth the splurge.
But rest assured, the benefits of these partnerships aren’t one-sided. The Wharton report we mentioned above put it perfectly in a quote from marketing professor, Stephen Hoch, “Every designer is interested in the middle market. If they are only designing for the runways and doing haute couture, they will be famous in Women’s Wear Daily, but they won’t be rich. They know that the money is in the mass market. This is where they will get scale.”
With all that in mind, it’s no surprise that retailers and haute brands are lining up for more of these partnerships. In November, H&M will launch a collection with fashion industry darling Maison Martin Margiela. The label is known for its edgy, avant-garde looks.
This fall Target launched round two of The Shops, which creates collections in partnership with upscale boutiques. This time around the promotion includes clothes from New York City’s Kirna Zabête. Normally, this high-end shop offers designer dresses that sell anywhere from $500 to more than $1,000. Nothing in the Target collection—nearly 100 items strong—costs more than $199.99.
At Christmas, Target will try out this same approach with a twist. They’re partnering with a high-end retailer—Neiman Marcus—to introduce more than 50 limited-edition gift items from some of the hottest names in high design. Consumers will find designs from Tracy Reese, Oscar de la Renta, Tory Burch, Jason Wu, Rag & Bone, and more. Prices will go all the way up to $499.99, but most should land under the $60 mark.
What do you think? Will Neiman Marcus, already known for high-end brands, benefit as much as Target and the designers?
If you liked this post, check out:
The Brands Have It: How Bed Bath & Beyond Beat Walmart at Home Textiles