September 26, 2013
Attention Amazon Moms: Target.com Wants You
If imitation is the sincerest form of flattery, Amazon.com should have felt very flattered yesterday. Target.com announced the launch of a subscription service that allows parents of infants and toddlers to put aside some of their worries and save money by ordering items such as diapers, formula and wipes on a recurring basis.
Like the Subscribe and Save program on the Amazon Mom page, customers of Target.com can now order from a group of items and have them delivered to their doorsteps at regular intervals, from four to 12 weeks. Target says consumers who participate in the program can save up to 15 percent and receive free shipping. Those who pay using Target’s REDcard will save an additional five percent.
A total of 150 items from Target’s up&up private label are included in the program, as well as national brands including Enfamil, Huggies, Pampers, Seventh Generation and Similac.
Target is clearly zeroing in on the infant and toddler market. Last week the company formally announced the test of expanded in-store baby departments complete with iPad-wielding Baby Advisors in 10 Chicagoland stores. No appointment is necessary to meet with advisors who will be on the floor Monday-Friday, 1-8 p.m.; Saturday, 11 a.m.-7 p.m. and Sunday, 11 a.m.-6 p.m.
- Diaper Duty Just Got Easier with Target Subscriptions – A Bullseye View
- Amazon Mom – Amazon.com
- Target Launches Its First Subscription-Based E-Commerce Service, Focus For Now Is Baby – TechCrunch
- Target aims at online rivals with baby goods subscription plan – Reuters
- Target Launches Enhanced Baby Experience Program in Select Chicago Stores – Target
BrainTrust
Recent Discussions
Discussion Questions
Will Target be successful with its new subscription program? Do you expect the retailer to offer subscription options for other categories going forward?
Poll
Yes, I do think they will be successful. Target does very well with moms of means, who tend to shop smarter. I recall a few years ago that retailwire.com had a story about a start-up business specializing in this very category (Diapers.com)? Wonder how they are doing today?
One concern is that if the items are being delivered, will it cause parents to make fewer shopping trips to the store? And is this why Target has not done it sooner?
Target will be successful only if it offers items at prices that are significantly below Amazon’s. Target cannot beat Amazon’s customer service, so it will have to compete on price. Will moms want to switch to Target when they can order so much more from Amazon and have it delivered on a subscription basis? I doubt it.
Great move, Target.com. I love the fact that Target.com is promoting their Up&Up Private Label brand in the service. Keeps them price competitive, helps them avoid price comparison shopping and ties the consumer closer with Target since the items are exclusive.
Yes, I am sure Target will add additional categories as they optimize the process and build a user base. What is really going to be interesting is if traditional grocers and drug stores will attempt to offer the same service to stay competitive.
I expect Target and others (especially Walmart) to push these tactics into other merchandise categories, as Amazon extends its reach into more commodity businesses. But the battle over baby goods is especially important as retailers try to reach young, household-forming consumers at the start of a lifetime of consumption for their families.
Yes, this will be successful. The new baby family has the highest spending rate of any demographic and is the most in need of convenience. This service takes one more “I have to remember” off the table for busy and often overwhelmed parents.
Other categories? Anything that is a regular and consistently timed purchase. Convenience is the future of shopping…or should I say BUYING?
Yep and I, once again, applaud Target for getting in front of the crowd. Adding the in-store Baby Advisors is brilliant as well. This is where they have the opportunity to get their private label in front of the customer and add on stuff that the new mom might not have thought of.
And yep, I do see other categories going in the subscription direction. It is a great move for staple goods.
Prices for infant consumables are through the roof with no relief in sight. Target has a good reputation for having the things you want except perhaps with lower prices. I feel comfortable that Target’s market penetration efforts in this area are not going to be on Amazon’s list of things to worry about for quite some time if at all. If Walmart was to take aim in this direction, the only thing that might hold them back is stumbling over their own feet. It is no secret that they struggle with e-commerce efforts.
I believe Target has built tremendous brand value to consumers and can extend the brand to new areas with relatively low risk. I fully expect them to branch out into other categories.
Drugstore.com (owned by Walgreens) does this too. I see this as Target achieving parity with other online retail leaders and seizing on a fairly obvious opportunity.
With this subscription-based ecommerce program delivering infant and toddler products direct to homes, Target is making life easier for parents and this should build brand loyalty, so these customers will also shop in-store.
Given this, it makes sense to test the expanded in-store baby departments with Baby Advisors using iPads available to answer questions.
I’m wondering if the beauty concierge specialists we discussed early last summer will be cross-trained to work in both places.
Seems Target has created a whole new associate – the iPad-wielding (fill in the blank) expert.
The toddler and baby segment is a target segment for Target. Any program that could make it easy for moms will be helpful for Target. Target has to tread this path carefully though, since if baby is the destination category for this customer segment, they might not have many other reasons to visit Target as often, dropping sales of other categories.
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Yes, I do think they will be successful. Target does very well with moms of means, who tend to shop smarter. I recall a few years ago that retailwire.com had a story about a start-up business specializing in this very category (Diapers.com)? Wonder how they are doing today?
One concern is that if the items are being delivered, will it cause parents to make fewer shopping trips to the store? And is this why Target has not done it sooner?
Target will be successful only if it offers items at prices that are significantly below Amazon’s. Target cannot beat Amazon’s customer service, so it will have to compete on price. Will moms want to switch to Target when they can order so much more from Amazon and have it delivered on a subscription basis? I doubt it.
Great move, Target.com. I love the fact that Target.com is promoting their Up&Up Private Label brand in the service. Keeps them price competitive, helps them avoid price comparison shopping and ties the consumer closer with Target since the items are exclusive.
Yes, I am sure Target will add additional categories as they optimize the process and build a user base. What is really going to be interesting is if traditional grocers and drug stores will attempt to offer the same service to stay competitive.
I expect Target and others (especially Walmart) to push these tactics into other merchandise categories, as Amazon extends its reach into more commodity businesses. But the battle over baby goods is especially important as retailers try to reach young, household-forming consumers at the start of a lifetime of consumption for their families.
Yes, this will be successful. The new baby family has the highest spending rate of any demographic and is the most in need of convenience. This service takes one more “I have to remember” off the table for busy and often overwhelmed parents.
Other categories? Anything that is a regular and consistently timed purchase. Convenience is the future of shopping…or should I say BUYING?
Yep and I, once again, applaud Target for getting in front of the crowd. Adding the in-store Baby Advisors is brilliant as well. This is where they have the opportunity to get their private label in front of the customer and add on stuff that the new mom might not have thought of.
And yep, I do see other categories going in the subscription direction. It is a great move for staple goods.
Prices for infant consumables are through the roof with no relief in sight. Target has a good reputation for having the things you want except perhaps with lower prices. I feel comfortable that Target’s market penetration efforts in this area are not going to be on Amazon’s list of things to worry about for quite some time if at all. If Walmart was to take aim in this direction, the only thing that might hold them back is stumbling over their own feet. It is no secret that they struggle with e-commerce efforts.
I believe Target has built tremendous brand value to consumers and can extend the brand to new areas with relatively low risk. I fully expect them to branch out into other categories.
Drugstore.com (owned by Walgreens) does this too. I see this as Target achieving parity with other online retail leaders and seizing on a fairly obvious opportunity.
With this subscription-based ecommerce program delivering infant and toddler products direct to homes, Target is making life easier for parents and this should build brand loyalty, so these customers will also shop in-store.
Given this, it makes sense to test the expanded in-store baby departments with Baby Advisors using iPads available to answer questions.
I’m wondering if the beauty concierge specialists we discussed early last summer will be cross-trained to work in both places.
Seems Target has created a whole new associate – the iPad-wielding (fill in the blank) expert.
The toddler and baby segment is a target segment for Target. Any program that could make it easy for moms will be helpful for Target. Target has to tread this path carefully though, since if baby is the destination category for this customer segment, they might not have many other reasons to visit Target as often, dropping sales of other categories.