When Target added its high-fashion Mossimo line in April 2003, the company was able to "create a destination in apparel the same way Michael Graves established an anchor in home goods."
According to Gregg Steinhafel, a president of Target, this strategy was to encourage this type of "one-brand seasonal event to create some in-store excitement." Target enlarged its designer brand portfolio. The aim was to increase about eighteen percent of overall sales that apparel accessories and footwear provide. Such companies as Bear Stearns and the NPD Group estimated the category sales between six billion to seven billion dollars (Target has thirty six point four billion dollars in revenues).
Target's later extension of its brand agreement with Mossimo meant a more dedicated approach to keeping strong brands in the apparel accessories department. It used to exhibit by such designer names like Todd Old-ham and Stephen Sprouse before. Their swimwear and beach apparel accessories were in and out a season later, so it was not a merchandise but marketing.
Thus, Target introduced a full-blown designer apparel line from Isaac Mizrahi in women's wear in 2003 and was thought to be "the one plus ultra of mass-market fashion." You can hardly think of Mizrahi as Donna Karan or Calvin Klein, though its high-fashion cachet with consumers was valuable for Target. Mizrahi's peak of popularity was when his clothing and apparel accessories were inaccessible to women in their late 20s and early 30s (his shoes are still sold for one hundred and eighty five at Nordstrom). Target was going to attract women by offering an extensive line that included everything from eyewear to footwear (including aprons) at affordable prices: tops at nine point ninety nine dollars, outerwear at sixty nine dollars, etc.
In 2003, some other new brands also joined Target's proprietary selection. One of them was the Physical Science by Marc Ecko, and the demand-based Liz Lange maternity wear became a hit. Cynthia Rowley was introduced with limited apparel SKUs in her program, predominantly in sleepwear. According to Stein, her line was performing "slightly under plan". Perhaps, Target should have included more apparel SKUs, as this is the very thing the designer is known for. It might generate more improved sales.
Target merchandised such famous brands like Xhilaration for the youth market and relaunched its Merona for young career types. It brought the company success and with Mossimo and Isaac Mizrahi, Target hoped to back its image.
Target offers both private and national brands. Nevertheless, it seems that the company has more success with private brands. Target is claimed to be competitive on prices with Wal-Mart and Kmart brands and items. However, one-quarter of its storewide SKUs fall into this category. Introducing more proprietary brands can be a much easier way to avoid comparisons with Wal-Mart. Wal-Mart is bringing in Levi's and besides there was a moment, when Liz Claiborne left Target.
Therefore, with the help of Isaac Mizrahi, Target tried to revolutionize its apparel presentation by offering its most comprehensive designer apparel in the most important category - women's.