BrainTrust Query: Is Wal-Mart's new housewares line a case of 'me too' merchandising?
By Don Delzell, Partner, Retail Advantage
Wal-Mart Stores announced on Thursday that it had signed an exclusive deal with celebrity "lifestyle and design expert" Colin Cowie for a holiday home collection. It's part of Wal-Mart's effort to attract more affluent and urban shoppers by offering more stylish merchandise. The holiday housewares line will be available October through late December.
Apparently, Wal-Mart has decided that the best form of competition is to adopt highly successful tactics from its most admired competitor. Yes, imitation is the most sincere form of flattery, but when has it really worked in retail merchandising? Is this a case of "if you can't out think them, copy them"? Or is this an adaptive and intelligent merchandising strategy?
Celebrity merchandising has always been a part of retail and, until recently, one of the most difficult for Wal-Mart to participate in. Wal-Mart's overall discount image has turned off iconic or lifestyle celebrities from the idea of being associated with the retail brand. Why is this different now? Is it that Wal-Mart has been successful in re-imaging itself in the fashion and lifestyle arena? Or is it because of the explosion of celebrity lifestyle pitch-people brought on by cable channels and the internet?
The adoption of Target-style marketing may not serve Wal-Mart particularly well in the long run. The issue for Wal-Mart and for lifestyle celebrities is that you cannot, cannot, cannot move up in the consumer association hierarchy. Starting out in specialty stores and upscale boutiques has always allowed for a gradual down-market movement, trading mystique for volume. No one has been able to move up-market.
Discussion Question: Is following in Target's lifestyle footsteps the right direction for Wal-Mart?
I don't think so. Differentiation is exactly what it implies: being different. Celebrity lifestyle branding is Target's strategy. If Wal-Mart is to be successful in its campaign to persuade existing customers to take a detour into softlines aisles, it will have to do so in a unique and powerful way that does not remind the customer of Target.
Comparing itself to Coke worked to bring Pepsi to a strong #2 market position. But Wal-Mart is the #1 market player. It seems to me that Wal-Mart has thrown in the towel, anointed Target as the market leader, and decided that, "If you can't beat 'em, join 'em."