George in a very large bag
Friday's Wall Street Journal carried two stories that develop at the intersection of haute couture and marketing. In the first article, which appears here, Wal-Mart's private label, George, is not meeting industry expectations. In Marketing, many professionals examine the congruence, or fit, between a brand and a product. Wal-Mart appears to have congruence issues. Do consumers think that Wal-Mart offers affordable, trendy clothes?
Wal-Mart could be taking on H-M, a European retailer that has successfully exported its model of ever-changing fashions geared to families. George, which was a European label, may not translate as well. Also, George just may not appeal to Wal-Mart's rural demographics? After all, H-M has stayed primarily on the East Coast and IKEA, another European retailer, has opened two stores outside of the coasts.
In the second article, which appears here, bags are the next women's THING to be surprised along with homes and SUVs. Do these bags match women's lifestyle, or do they enable women's lifestyle? A subtle question, but with different answer for managers at Coach, L.L. Bean, and Gucci.
Perhaps designers saw how women used backpacks in college. Backpacks are not the most feminine article, and I doubt many would pay over $400 for it. An all-leather bag from Coach with roughly the same volume is a different matter.
1 Comments:
Wal-Mart is not the first and will not be the last retailer to roll out a private label. Target has a successful line of clothing for men and women. K-Mart brought in Jacquelyn Smith of Charlie's Angel's fame nearly two decades ago for a mutually beneficial relationship. In the 1970s, JC Penny's ran comparison advertisements between its jeans and Levi's.
In general, private labels cause a lot of tension between manufacturer labels like Levi's and retail store. By offering a private label, the store becomes a competitor to the manufacturer's label. Should Ralph Lauren complain when Macy's promote its private label golf shirts? Does Polo increase its promotion budget in response? Should it withdraw its line of clothing from Macy's?
Specifically to Wal-Mart, George underscores where WM's competitive advantage lies. George is a different animal than Sam's Choice because fashion is not a homogenous product. I predict WM will pull George in about 12 months and try again with a different label.
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