Target launches first handmade brand in a decade

The brand includes nearly 400 arts and crafts products , including paint sets , canvases and drawing kits , according to a company news release . Most products retail for under $25.

Mondo Llama is currently available in Target's stores , platforms and same-day delivery services, with most items available on March 28.

Target is currently on a private-label blitz , and that war won't end anytime soon as the company continues to monitor consumer trends .

Crafting and DIY activities have surged as consumers have spent much of their time at home during the pandemic . Target launched Mondo Llama in response to the growing interest in arts and crafts, particularly for those who want activities with easy-to-follow instructions, the company said in a press release.

Consumers have been tapping into their creativity in some form over the past few months. According to research from GlobalData, 70% of consumers last year started at least one home or garden project in the third quarter, and this enthusiasm has benefited Home Depot and Lowe's.

Craft retailer Joann is riding that wave when it filed for an IPO last month. Internal research from Joann shows the creative products sector has grown 4% over the past five years .

“After extensive consumer research, we worked with our customers to create a new brand that meets their arts and craft needs at an incredible value,” Julie Guggemos, Target’s senior vice president and chief design officer, said in a statement. “It’s the perfect complement to our private label portfolio. ”

Executive Vice President and Chief Growth Officer Christina Hennington told investors and analysts on a recent earnings call how Target is responding quickly to consumer trends based on its Seeking Alpha report card and will launch multiple new private-label brands based on demand.

In recent years, Target has used private-label brands to drive sales and expand its presence in different categories. The strategy appears to be working for the company’s intended purpose. Last month, Target’s activewear brand, All in Motion, became its tenth multibillion-dollar brand, more than a year after its launch.

“We ended 2020 with 10 of our own brands exceeding $1 billion in revenue, and four of them exceeding $2 billion in annual revenue,” Chief Executive Officer Brian Cornell said on a conference call. “Any one of those brands alone would be a massive retailer , and their contribution to the bottom line is huge. ”

Target

Private Label

Handmade Brand