Dive Brief:
- Target has yet again collaborated with a DTC company. Personal wellness brand, Care/of, on Wednesday announced the release of a new vitamin line at Target's stores and website.
- The partnership is Care/of's first "foray into the retail market." The product line will be comprised of multivitamins for women, men and prenatal care, as well as benefit-led blends for sleep, immunity, relaxation, energy and focus, according to a company press release.
- The vitamin line will be available via in-store, pickup or delivery beginning March 28. The multivitamins and blends have a suggested retail price of $14.99 and $18.99 for the prenatal multivitamins, per the release.
Dive Insight:
As Care/of's latest product launch appears on the shelves, the saga of Target's DTC partnerships continues. This time, Target is trying to give people a reason to stop by its vitamin aisle.
Care/of's vitamin line at Target was produced based on findings from the six million people who have taken the brand's quiz in the past four years, the company said. "All products are Certified C.L.E.A.N., non-GMO, sugar-free, gluten-free, vegan or vegetarian, and contain no unnecessary fillers," the release said.
Partnerships between DTC brands and big-box retailers have grown increasingly popular in recent years. And Target, with its identity as a one-stop-shop destination, has served as a popular middleman for DTC brands that want to expand their reach to a new group of consumers, including those that opt to shop in physical locations.
Men's grooming brand and subscription service Harry's also teamed up with Target to have its products in physical locations and online in 2016. Mattress brand Casper has partnered with multiple retail giants over the years, including Target, to display its sleep products in Target's assortment as well.
Even non-DTC brands like tech giant Apple and beauty retailer Ulta, who have physical locations of their own, have found value in collaborating with Target. Both companies previously announced they would be opening Target shop-in-shops this year.
For years, Target has leveraged partnerships with both DTC and name brands to drive sales — and it seems to work in favor of all parties involved. DTC brands gain immediate access to Target's consumer base, while the string of product launches and brand collaborations has helped the retail giant flourish during an economically turbulent time for the retail industry.
Target's sales growth in 2020 ($15 billion) was higher than the company's total sales growth over the last 11 years, according to the company's fourth-quarter report. Target Chairman and CEO Brian Cornell told investors and analysts that its multi-channel shopping and fulfillment options were key to gaining customer loyalty.
"The tactic for the company appears to be one of taking a forensic look at certain categories and plotting ways to engineer growth – something it has so far done with the Apple and Ulta partnerships in electronics and beauty, respectively," Neil Saunders, managing director of GlobalData, said in response to Target's Q4 results.
