Target Partners with Dwell to Take on IKEA
Retailers are seeing potential within the home space. As a result, we can expect to see a shift towards creating furniture and partnerships that will bring consumers more options for stylish, quality-made furniture, at affordable prices.
Target teams up with Dwell
While Target is a common stop for college-aged millennials, its affordable wares are enjoyed by consumers of all ages. Recently, Target announced its partnership with Dwell – a design and lifestyle brand – to create a line of affordable, modern furniture. Prices in this line, named “Modern by Dwell Magazine”, will range from $39 – $399, making this very attractive to shoppers on a budget who are not willing to sacrifice style. The mid-range market segment is widely coveted by Home and Housewares brands, and any strategy that allows a brand or retailer to reach this demographic is always a smart move. Many luxury furniture lines are catching on and making this move as well.
IKEA’s competition is growing
Ikea has long-since been a go-to for cheap, fast (well, maybe not so fast if you’ve ever built IKEA furniture before), and accessible furniture for smaller spaces and starter homes. With a monopoly on millennial consumers, IKEA has, until now, enjoyed almost unrivalled success. It was only a matter of time before other brands and manufacturers took notice and went for a piece of the furniture pie.
IKEA (and now Target) isn’t the only retailer trying to dominate the mid-range furniture segment. Here are some brands that have already made their mark within this market:
CB2 by Crate and Barrel
Crate and Barrel is known for their higher-end furniture and home accessories – out of reach for most consumers under 40 years old. This company saw potential shoppers going to places like IKEA and decided to create CB2. CB2 is less expensive and caters to smaller spaces such as college dorms, apartments, condos, and starter homes.
Online megastore Wayfair is perhaps one of the retailers closest to being in direct competition with IKEA. With over 5000 brands of furniture, lighting, cookware and more, Wayfair is one of the world’s largest online destinations for shoppers looking for an array of incredibly affordable options.
West Elm by William Sonoma
When most people think William Sonoma, they think, ‘expensive kitchen-ware and gadgets’. However, William Sonoma is the parent company to Pottery Barn – a high-end furniture and home accessory brand. Like Crate and Barrel, William Sonoma realized just how much of market they were missing out on, so they created West Elm. This brand is also geared towards consumers looking for affordable and stylish furniture and accessories at reasonable sizes.
With each new brand or partnership, options for consumers increase, and the playing field for competing retailers becomes more level. Companies are recognizing the need for housewares that aren’t always luxury or always low budget, but in between. This provides an alternative for shoppers looking to stay on budget without sacrificing style.
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