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Target Stays On Point With and Without Gilt August 17, 2010 – 6:03 pm				Abdul Fattah Ismail

In today’s news, Target will enter a partnership with Gilt Groupe to do an exclusive flash-sale of its fall collection.  It’s a deft move for brands to leverage two popular consumer bases and improve their online advertising metrics.  Target, for years, has cemented their reach as a haute purveyor with thrifty price points through esteemed labels such as Isaac Mizrahi and Alexander McQueen.  This experiment with Gilt Groupe takes their interactive marketing reach to a higher level, but one must wonder the inverse effect for Gilt?  This is the second premiere retailer they are working with on an exclusive sale campaign.  They initially ran a Rewards Program Sale with Starbucks earlier this month.  Are they trying to sell out for mainstream fervor?  The economic downturn has been a blessing for this online apparel retailer, which gained popularity through exclusive membership offers that allow entrants to purchase quality products at a reasonable price within a certain amount of time.  Their e-commerce model is sound, and the navigable, metallic website creates an aura of mystique.  Why the rush to outreach?

Brands that emerge from obscurity often face a crossroads from an equity standpoint and must decide on whether to branch far beyond their niche on a broad level or make incremental growth strategies.  Some have the product that stands the test of durability and competition, allowing profitability to flow from above.  The other side of that coin are those that do not have the vision to see pitfalls in the marketplace nor make the necessary adjustments to keep the brand afloat.

The partnership of these two firms is interesting in that their approach mirrors the scenario explained in the prior paragraph.  Target has clear advantages in their retail market strategy with a wider level of products and stores to maintain fixed cash flow, such as personal care items.  Their marketing team can afford to create niche strategies, while giving them the resources to develop their own unique consumer base.  

Gilt Groupe, as a novice e-commerce retailer, doesn’t have this same flexibility in terms of risk.  They could be compromising the integrity of their mission, for all we know.  It will be interesting to see if they maintain this aggressive outreach into mainstream brand partnerships.  The sale starts at high noon Eastern Time on Friday, at Gilt.com.  Your fingers and debit card should be ready.

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Posted by Abdul Fattah Ismail
Posted in blog, Interactive Marketing, Marketing, Small Business, World | 1 Comment »
Tags: Blueliner Marketing, gilt groupe, internet marketing agency ny, new york interactive marketing agency, new york web design agency, search marketing agency ny, target fashion labels, target mashable