Brands’ Dilemma: Target Elbows Way Into Upscale Beauty World
By Molly Prior and Faye Brookman South Plainfield, N.J. ? On April Fools’ Day, two shoppers tossed six beauty products into a large, red shopping cart at the Target store here, racking up a bill of more than $205.
A glance inside the shopping bag ? containing Clarins, Kiehl’s, Origins, Bare Escentuals and Bumble and bumble products ? revealed the hefty register ring was not an April Fools’ prank, but evidence of Target’s move to go upscale by aggressively plucking department store brands in a bid to plump its ever-in-flux beauty business.
The prestige brands mentioned above are vigilantly guarded by their firms, and contained to high-end retailers, replete with high-end service. Their leakage to downstream retailers could undermine the sizable marketing budgets designed to telecast their luxury positioning to consumers. That said, a number of industry experts surmised that Target does not have a direct relationship with these brands, and that the products have been diverted from legitimate sales channels. The rapid consolidation of departments stores, which in addition to shuttering hundreds of doors, seems to have thrown ample amount of product into the gray market.
Executives from the Est?e Lauder Cos.-owned Origins and Bumble and bumble brands, the Klein-Becker-owned StriVectin, and Clarins said they have no business relationship with Target.
Target signaled its intentions to move upscale to shoppers by merchandising these brands, along with the Finland-born brand Lumene, in a 4-foot planogram display called “Professional Skin Care.” On each of its four shelves, matching signage further punctuated Target’s climb toward luxury. For instance, a sleek, black sign alongside the Origins items read, “A holistic approach to skin care” and another next to Clarins and StriVectin products proclaimed, “A breakthrough wrinkle treatment.” Above the products hung a large photo of a model with glowing skin. The graphics match the decor that Target has recently added to other categories, including hair color and premium hair appliances.
That same afternoon, a shopper on the opposite coast spotted an identical Professional Skin Care display in Target stores in Culver City, Calif., and West Hollywood, Calif.
Target Corp. declined to comment on the presence of luxury brands. But another mass market vendor, speaking on the condition of anonymity, remarked that Target is said to be testing the Professional Skin Care display ? positioned alongside Procter & Gamble’s Olay lines ? in 300 to 500 units across its 1,589-store chain.
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