The Industry/Market Structure Innovation – Designer Brands
Target’s idea to provide designer brands at a cheaper price is an example of an innovation within the industry/market structure. Target realized that there was a trend in the environment where consumers saw higher-end, luxury items as a status symbol. Buying designer brands made customers feel good about themselves and made them feel set apart. As time has passed consumers have become more and more concerned with the things that they have, the way it looks, and how it makes them feel. By Target offering designer products at lower prices it allowed the average American to have these products that they would not have previously been able to purchase. This made customers feel like they could still have a little luxury and not necessarily spend a fortune on it. From Target’s conception its mission has been to differentiate their company from its competitors by offering more upscale products at lower prices. In combination with their mission and this trend Target came up with a very innovative and successful idea. This trend not only has been successful among regular customers but has begun to attract customers who would not normally shop at the store. The idea has been vital to Target’s new image and it has most definitely differentiated them among their top competitors.
This idea started when Target decided to begin recruiting designers to design products for their stores. Target’s partnership with architect and designer, Michael Graves, kicked off this concept. Graves started the revolutionary trend by designing a line of housewares, which was launched in 1999. This decision set Target apart from its toughest competitors, Kmart and Wal- ...