The American retail corporation has adopted a more agile production model and introduced tools to rapidly bring trend-focused products to market.
Following insights that 85% of Gen Z and millennials are likely to purchase trending products within a day of seeing them on social media, Target has streamlined its production process by employing real-time guest insights and introducing GenAI trend intelligence tools. This shift allows the company to cut up to 80% from its production timelines.
Target senior vice president and owned brands president Bill Foudy said: “We’ve spent decades building and refining our industry-leading merchandising, trend, design and sourcing capabilities. And today we’re leaning into new ways to move even faster to meet the high expectations consumers have for our brand.
“By using consumer insights and leveraging technology to rethink how we design, source and produce, we're building a more agile, responsive model so we can deliver the style, quality and value our guests expect from Target, exactly when they want it.”
A key aspect of Target's strategy is its robust trend forecasting, which involves analysing cultural signals from various sources, including runways and street style. This enables the company to make informed design choices throughout the production process. For instance, Target's merchandising teams recently explored European holiday markets, leading to holiday collections inspired by vintage Nordic patterns and tactile textures, developed swiftly through collaboration with vendors.
Target's "speed tracks" initiative is central to its flexible production approach. This model allows for rapid design processes across multiple brands such as A New Day and Wild Fable. For example, the "oversized perfect hoodie" by Wild Fable was created within weeks, significantly reducing the typical production timeline.
The company's strategy also includes managing raw materials and production capacity to quickly respond to consumer trends. Recent examples include the swift launch of baggy leopard-print jeans by Universal Thread and an expansion into new styles for All in Motion leggings, resulting in significant sales growth.
To further enhance its capabilities, Target is investing in advanced technological tools like the proprietary GenAI-powered Target Trend Brain and 3D design software. These tools facilitate faster trend analysis and virtual product development, reducing manual workload and sample creation times.
