Crafting label debuts for the first time in a decade by Target

Crafting label debuts for the first time in a decade by Target

Target's activewear brand, All in Motion, joined the ranks of its 10 billion-dollar owned brands just over a year after its release, marking a significant milestone for the retail giant. This success is part of a broader trend at Target, as the company boasted 10 of its own brands each generating $1 billion or more in 2020, with four crossing the $2 billion per year threshold.

In response to the growing interest in arts and crafts during the pandemic, Target has launched a new private label called Mondo Llama, its first in the crafting space in over a decade. This brand, co-created with guests to meet their arts and crafting needs at an affordable price, includes approximately 400 arts and craft products, most of which are available by March 28. Most items under the Mondo Llama label retail for under $25.

Staying true to its promise of inclusivity, Mondo Llama features a 24-shade skin tone palette in products like markers, crayons, and paints. The rapid response of Target to consumer trends is evident in its launch of several new private labels, including Mondo Llama.

Target's senior vice president and chief design officer, Julie Guggemos, emphasised that the focus of Mondo Llama is on providing activities with easy-to-follow instructions. The creative products industry has seen a 4% increase over the past five years, according to Joann's internal research, indicating a growing market for such products.

Target's private label strategy in 2025 prominently focuses on expanding and strengthening its owned brands, including newer and growing labels such as Mondo Llama, to respond to evolving consumer trends favoring private labels that offer quality, value, and style.

The success of Mondo Llama, as well as other private labels, contributes significantly to Target's profits. This approach leverages Target’s brand trust, extensive trademarking, and broad portfolio to reinforce customer loyalty and market share in a highly competitive retail environment.

The introduction of Mondo Llama is not the only sign of Target's commitment to private labels. The company leads the U.S. in trademark applications, filing hundreds annually to protect and grow its portfolio of private labels. This includes launching new brands like Dealworthy (value essentials) and Gigglescape (toys), along with expanding assortments under existing labels like Auden and Up&Up.

The shift toward acceptance and preference for private labels since the pandemic is evident. Consumers, especially millennials and Gen Z, increasingly trust retailer-endorsed private brands and view them as equivalent or superior alternatives to national brands. Nearly half of U.S. consumers are buying more store brands than ever before, with private label sales growing faster than national brands at 4.1% year-over-year.

This trend benefits not only Target but also other retailers in the home and gardening sector, such as Home Depot and Lowe's, as around 70% of consumers began at least one home or gardening project over the last few months.

In a recent earnings call, Christina Hennington, executive vice president and chief growth officer, mentioned that Target will launch several new private labels in response to consumer demand. This private label blitz is part of Target's broader strategy to meet the needs of its customers while maintaining its competitive edge in the retail market.

Even as Target continues to expand its private label offerings, other players in the crafting industry are also making moves. For instance, Joann, a crafting retailer, filed for an IPO last month, indicating a growing interest in the sector.

In conclusion, Target's expansion of brands like Mondo Llama fits within a wider, deliberate private label growth strategy responding to increasing consumer demand for affordable, high-quality, trendy private brands. This approach leverages Target’s brand trust, extensive trademarking, and broad portfolio to reinforce customer loyalty and market share in a highly competitive retail environment.

1. In addition to expanding Mondo Llama, Target plans to launch several new private labels, such as Dealworthy and Gigglescape, to cater to various consumer needs.
2. The focus of Target's private label strategy in 2025 is on expanding and strengthening its owned brands, including Auden and Up&Up, to respond to evolving consumer trends.
3. The rapid response of Target to consumer trends is evident in its launch of private labels not only in arts and crafts, but also in areas like activewear, food and drink, fashion-and-beauty, home-and-garden, and shopping.
4. The success of Target's private labels, including Mondo Llama, significantly contributes to its profits by leveraging brand trust, extensive trademarking, and a broad portfolio to reinforce customer loyalty and market share in a highly competitive retail environment.

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