Dive Brief:
- In the latest addition to its private-label line-up, Target on Monday released Mondo Llama, the retailer's first private label in the crafting space in over a decade.
- The label includes almost 400 arts and craft products, including paint sets, canvases and drawing kits, according to a company press release. Most products retail under $25.
- Mondo Llama is currently available at Target's stores, website and same-day fulfillment services, with most items available by March 28.
Dive Insight:
Target is on a private label blitz. And as the company continues to monitor consumer trends, it looks like it won't be over anytime soon.
Crafting and DIY activities have surged during the pandemic as consumers spend most of their time at home. Target's introduction of Mondo Llama rides on the growing interest in arts and crafts, specifically focusing on people looking for activities with easy-to-follow instructions, the company said in the release.
Over the last few months, consumers have been tapping into their creative side in some form. Around 70% of consumers began at least one home or gardening project over the third quarter last year, according to GlobalData research — a fervor that benefited both Home Depot and Lowe's.
Crafting retailer Joann is also riding this wave as it filed for an IPO last month. Joann's internal research showed that the creative products industry has seen a 4% increase over the past five years.
"After extensive guest research, we co-created a new brand with our guests that meets their arts and crafting needs at an incredible value," Target's senior vice president and chief design officer Julie Guggemos said in a statement. "It's the perfect addition to our portfolio of owned brands."
Christina Hennington, executive vice president and chief growth officer, told investors and analysts in a recent earnings call about how Target rapidly responds to consumer trends and will launch several new private labels in response to the demand, per a Seeking Alpha transcript.
In recent years, Target has used private labels to drive sales and grow its presence in different categories. This strategy appears to do what the company intended. Last month, Target's activewear brand, All in Motion, became its 10th brand billion-dollar owned brand a little over a year after its release.
"We cleared 2020 with 10 of our own brands each generating $1 billion or more and four of those crossed the $2 billion per year threshold," CEO Brian Cornell said on the call. "Any one of these brands alone would be a sizeable retailer, and as you know, their contribution to profits is outsized."
Staying true to its promise of making all customers feel more included, the company also said the Mondo Llama features a 24-shade skin tone palette in products like markers, crayons and paints.
