Target, DTC backpack brand State Bags team up ahead of back to school

Dive Brief:

Just as back-to-school shopping season kicks off, consumers are about to have another digital native brand available to them in physical retail. Brooklyn-born backpack brand State Bags is now available in Target locations nationwide, according to an announcement emailed to Retail Dive Monday.
As part of the deal, the direct-to-consumer brand will be launching an exclusive collection at 600 Target stores with prices ranging from $50 for backpacks and $20 for lunchboxes, per the release.
The partnership marks State Bags' first entry into a nationwide big-box retailer, the company said. The brand is expecting to double its back-to-school business year-over-year in 2021 with the Target launch.

Dive Insight:

Target continues to grow its roster of DTC brands with its latest partnership with State Bags.

State Bags was founded by Jacq and Scot Tatelman — a husband and wife "on a mission to make beautiful, well-made products while using the power of business to give back and work to shift narratives around social injustices," the announcement said. The prints featured in the collection were designed by Jacq Tatelman, who also serves as the brand's creative director and was a previous buyer at Henri Bendel.

State Bags is a certified B-Corporation and touts a business model that balances profits and giving back. For every bag purchased from the brand, State Bags will support American children and families in need through initiatives like donating "fully-packed" backpacks at its bag drop rallies.

Over the past year, State Bags saw 200% year-over-year growth during the back-to-school selling period. Last year, it also grew its back-to-school business by 45% year-over-year.

Despite the business' growth online, State Bags said partnerships like that of Target allow the brand to participate in retail transactions and reach new customers.

This, along with the increasing customer acquisition cost, has made big-box retail partnerships attractive for many DTC brands.

Target is among the most popular destinations for DTC brands who want to display their products in physical stores. Target teamed up with razor brand Harry's back in 2016 and has not stopped striking deals with digital natives since. Grove Collaborative ventured into physical retail with Target in April and, not long after, added dog wellness startup Jinx and sustainable homewares brand Stojo to its DTC assortment.