Monday, September 19, 2011

Monday Morning QBing: Missoni for Target

So this weekend, I went to Target to buy some stuff - you know, essentials like orange juice and Pop-Tarts - and pick up some Missoni for Target socks.

Yes, I knew there was a run on the Missoni products, but I figured I was safe with socks ... but nope for both Targets (they're 1 mile away from each other, don't ask).

Credit to Target - they did an amazing job with the pre-launch; they were in men's and women's fashion magazines, there was a great buzz built up for the launch.

PR issues for Target - they were wiped out of products almost immediately, and the website was unable to sustain the traffic. And there are close to 35,000 Missoni for Target products on eBay ... and reports of 44,000 at the beginning so people were just buying to sell, and not buying to wear or use. And that's not even taking into consideration the possibility of products hoarded by employees ... .

Questions that this leads to - is it really just a one-time event, and there are no more Missoni for Target products to be sold? According to the stores, that was it. And the website was totally wiped out too. Why weren't there limits placed at the stores for what people would buy, how many they could buy, and, well, the sizes? It's obvious that people were grabbing and buying, especially with all the XL sizes on eBay. And will other top-tier designers avoid Target because they will wonder if their products will be pushed to eBay almost immediately (likely no, because it's about money paid out).

So the reality is that while the public might be upset and annoyed that they didn't get what they might have wanted (I wanted socks, even though I don't wear shoes), Target made money and the stock did rise. For shareholders, and communications employees, that's key. The crisis with the run on goods to re-sell on eBay and the crashing of the site are just blips.

But it's going to take time to repair some of those relationships ... and yet, at the same time, create more demand for the next big designer (so expect a bigger run for the goods). You would expect the company to address the issues on Facebook - actually, there are a lot of issues it seems like they need to address - but it's just a bit of answers and probably not as much as they could/should be. Of course, with a large company like them, it's hard to address every issue. But the anger and disappointment on the page is quite palpable.

All in all, though, it's a push on whether Target will have any long-term issues. People forget, profits went up, and life goes on.