We look at how Target is aiming to grow its share in the baby category through private label development.
Extending Cloud Island private label
Following the exit of Toys R Us and Babies R Us from the US market last year, opportunities to gain share in the toys and baby categories emerged. Building on its private brand expertise, Target is extending its Cloud Island brand into baby essentials, including diapers, wipes, toiletries and feeding products.
Developed with input from parents
The retailer worked with parents to develop the range of 30 products, hosting in-home interviews, focus groups and accompanied shopping trips. Products have been benchmarked against premium brands with pricing around 30-40% lower. Target also worked with pediatricians and dermatologists to verify product claims.
Private label powerhouse
The Cloud Island brand was launched in 2017, offering a unique range of nursery décor, bedding and bath products. This formed part of the retailer’s aggressive private brand strategy which has seen over 15 new ranges launched in 18 months. Most of the recent new ranges have been focused on clothing and homewares, although last October it launched, Smartly, its first new brand in personal care and consumables for several years. It also moved into the electronics space with the Heyday brand, while also bringing several digitally-native brands into its stores.
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