Target announced this week that it is teaming up with “thredUP” to buy high-quality, previously-worn clothing. Target particularly wants fashionable brands such as J. Crew and Calvin Klein. Here’s how the program works. Customers pick up a “clean-out bag” from a Target store or order one online from thredUP. They place the women’s and children’s clothing items that they want to eliminate in the bag. Then they drop it off at a participating Target store or send it via FedEx or mail. The shipping is free. For all the items that are accepted, the customers receive credit in Target gift cards. The items that are not accepted are recycled by a textile recycler. The customer does not receive credit for those items nor does she get the items returned to her. Once she sends the items to thredUp, they are out of her hands.
This program is designed to get customers into the store to use their Target gift card that they received from sending in their worn fashionable items. It also helps customers clean out their closet easily. Either an empty closet or a gift card would be incentive to buy new clothes. Together, they are double encouragement to purchase the clothes at Target.
One customer confirmed this. “I buy a lot of clothes at Target, so it would be like an exchange.”
Target would not attempt this program without the online component. The Internet is important in several ways. First, ordering the “clean-out” bag online makes getting it easy. The customer merely assesses how much she wants to eliminate from her closet, goes online, orders the bag, fills it when it arrives, and sets it on the doorstep for the mail or FedEx person.
Second, teaming up with thredUP.com enables Target to launch the program with minimal cost and effort. ThredUP is already in this business with a Web site that instructs the customer and facilitates the process. It can handle the items that are sent by customers, sort them, and assign a value for the gift card. It can then send the unacceptable items to a textile recycler and sell the rest. (Target has not stated that these items will be available in its stores.)
Third, announcing the program online reaches its target market. These customers are online. They get their information online. They expect to find out about a program of this type online, and their interest is piqued by online presentations. The Internet component is critical to the launch and success of the program.
The Internet continues to open opportunities for businesses. Unfortunately for consignment stores, Target’s program jeopardizes their intake of inventory and their customers shopping at their stores for previously-worn fashionable clothing. Target’s acceptance of these items will reduce their availability. The gift card from Target will prompt shoppers to spend money at Target that they may have spent at a consignment store. Suddenly, Target has inserted itself as a direct competitor to consignment stores. That is shocking to store owners and may have an impact on the stores’ revenues.
This situation is an excellent example of the Internet affecting businesses in ways businesspeople never anticipated. Do what you can to avoid being caught off guard. Ask yourself, “Is my business next? How will the Internet change the environment in which my business operates?”
This week's marketing trivia challenge is How has the Internet changed your business environment? E-mail your answer.
This program is designed to get customers into the store to use their Target gift card that they received from sending in their worn fashionable items. It also helps customers clean out their closet easily. Either an empty closet or a gift card would be incentive to buy new clothes. Together, they are double encouragement to purchase the clothes at Target.
One customer confirmed this. “I buy a lot of clothes at Target, so it would be like an exchange.”
Target would not attempt this program without the online component. The Internet is important in several ways. First, ordering the “clean-out” bag online makes getting it easy. The customer merely assesses how much she wants to eliminate from her closet, goes online, orders the bag, fills it when it arrives, and sets it on the doorstep for the mail or FedEx person.
Second, teaming up with thredUP.com enables Target to launch the program with minimal cost and effort. ThredUP is already in this business with a Web site that instructs the customer and facilitates the process. It can handle the items that are sent by customers, sort them, and assign a value for the gift card. It can then send the unacceptable items to a textile recycler and sell the rest. (Target has not stated that these items will be available in its stores.)
Third, announcing the program online reaches its target market. These customers are online. They get their information online. They expect to find out about a program of this type online, and their interest is piqued by online presentations. The Internet component is critical to the launch and success of the program.
The Internet continues to open opportunities for businesses. Unfortunately for consignment stores, Target’s program jeopardizes their intake of inventory and their customers shopping at their stores for previously-worn fashionable clothing. Target’s acceptance of these items will reduce their availability. The gift card from Target will prompt shoppers to spend money at Target that they may have spent at a consignment store. Suddenly, Target has inserted itself as a direct competitor to consignment stores. That is shocking to store owners and may have an impact on the stores’ revenues.
This situation is an excellent example of the Internet affecting businesses in ways businesspeople never anticipated. Do what you can to avoid being caught off guard. Ask yourself, “Is my business next? How will the Internet change the environment in which my business operates?”
This week's marketing trivia challenge is How has the Internet changed your business environment? E-mail your answer.
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