Cheap Chic Business Model

“Cheap-chic” is a business model where inexpensive merchandise is marketed as stylish. It emphasizes style and design to distinguish oneself from competitors. (4) This allows for high levels of profit because these merchandise sell at low prices but have an expensive feel to them. Great examples of such a concept include: Target, Trader Joe’s, and Ikea. (1)
As a loyal and regular customer to Target, I have found myself attracted to Target’s sales and aesthetic appeal. While Target and Walmart fall in the same category, I would prefer Target over Walmart any day. My reasoning is that everything just seems more, well, dignified? Target has mastered the marketing secret to attract their target audience, young millennials looking for a good deal but who still want to feel stylish. (2)Target achieves that through their well-known commercials. Named marketer of the year by Advertising Age, Target’s commercials feature catchy beats that capture the
Most notably, Target recently collaborated with Lilly Pulitzer, a brand popular with high society that produces clothing and the likes that feature bright, colorful, floral prints. The exclusive collection was sold out in a matter of hours, both in stores and online. (6) This phenomenon only further piqued my interest in the cheap-chic model that Target utilizes.
To have the cheap-chic model be applied and work in a business, the marketing team will have to do a lot of work both in advertisements and the design of the store to fully grasp this cheap-chic feel. As mentioned before, Target falls into the same categories as Wal-Mart and Kmart. Despite being smaller in size, it has been able to thrive and coexist profitably with Wal-Mart while Kmart is going towards bankruptcy. (7) Target's success can be attributed to their determination to differentiating themselves from competitors as well as their distinctive marketing