{"id":7905,"date":"2020-05-18T14:22:33","date_gmt":"2020-05-18T18:22:33","guid":{"rendered":"https:\/\/www.ceros.com\/inspire\/?p=7905"},"modified":"2021-03-10T11:46:19","modified_gmt":"2021-03-10T16:46:19","slug":"julie-guggemos-target-svp-product-design","status":"publish","type":"post","link":"https:\/\/www.ceros.com\/inspire\/originals\/julie-guggemos-target-svp-product-design\/","title":{"rendered":"What to Know About Target’s Julie Guggemos, SVP of Product Design"},"content":{"rendered":"Reading Time: <\/span> 4<\/span> minutes<\/span><\/span>\n

A few years ago, it seemed inevitable that Target was going to buckle under the pressure of Amazon and modern e-commerce<\/a>. Sears and Toys \u201cR\u201d Us had already begun closing down, shuttering stores and losing relevance<\/a> by the day. But since 2017, Target has done the unthinkable and successfully reinvented itself<\/a> as a worthy competitor of the e-commerce giant. How did Target do it? <\/p>\n\n\n\n

It was a combination of factors, including a risky multi-billion-dollar investment in e-commerce enhancements and store makeovers. But also Target had a secret weapon: design leader Julie Guggemos, the so-called \u201cqueen of affordable chic<\/a>.\u201d <\/p>\n\n\n\n

As Target\u2019s SVP of product design, Guggemos has helped to launch over 20 in-house brands, doubling the number of their private labels. She personally oversees more than 25,000 Target-designed products that get put on the shelves each year. <\/p>\n\n\n\n

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A chair from Project 62, Target\u2019s line of affordably priced mid-century modern furniture, which Guggemos helped launch in 2017. <\/em><\/figcaption><\/figure>\n\n\n\n

While Guggemos herself doesn\u2019t have any formal training in design, she\u2019s developed an eye for it as she\u2019s moved up the ranks at Target. Plus, she has a keen sense of what trends are going to hit big. Born and raised in Roseville, Minnesota, Guggemos kicked off her career right out of college as a toy buyer for the retail giant. In 1992, she took a gamble on a stuffed animal, a little known purple dinosaur named Barney, who was the lead of a new PBS show. \u201cIt sold out in two weeks,\u201d Guggemos told the Star Tribune<\/em><\/a>. \u201cI quickly expanded the buy and distribution, so as popularity for the show grew, so did our sales.\u201d Barney quickly became Target\u2019s best-selling toy. <\/p>\n\n\n\n

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The OG Barney, from 1992. <\/em><\/figcaption><\/figure><\/div>\n\n\n\n

Guggemos is not a designer herself, but her ability to think like one has her producing such stellar results. When she first started in product development, her role was \u201ctranslating the business strategy to the design team and also helping Target understand the value that designers could bring to the business, because it was all new,\u201d she said<\/a>. \u201cWith that came more discipline around our products and understanding the guest and guest needs so that we can be very specific in how we develop products.\u201d <\/p>\n\n\n\n

For Guggemos, research is paramount. The design team\u2014which is Minneapolis-based and made up of more than 500 designers and engineers of all backgrounds<\/a>\u2014conducts field missions. They will walk into customers\u2019 homes and open up kitchen cabinets<\/a> to figure out what\u2019s missing, they\u2019ll spend two years watching how plates wear on a restaurant floor<\/a>, and they\u2019ll even camp out in Target-made tents \u201cto build empathy for the consumer,\u201d as Guggemos explained<\/a> in one video.<\/p>\n\n\n\n

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For the prescription drug packaging for the Clear Rx system, designed in partnership with <\/em>Deborah Adler<\/em><\/a>, Guggemos looked at over <\/em>80 prototypes<\/em><\/a>. <\/em><\/figcaption><\/figure><\/div>\n\n\n\n

Target\u2019s investment in building out their \u201cowned brands\u201d isn\u2019t anything new to retail. Traditional grocers and stores like Kroger and Macy\u2019s have successfully followed a similar model, offering high-margin private labels as cheaper alternatives for consumers, compared to third-party products. But what sets Target apart is the quality\u2014the design is good enough to create name-brand recognition and loyalty. <\/p>\n\n\n\n

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In 2019, the company saw apparel sales boosted by over 10%<\/a>. Most of the increase came from in-house clothing brands, including the kids label Cat & Jack, the women\u2019s label A New Day, and the men\u2019s label Goodfellow & Co. All three brands were launched during Target\u2019s overhaul in 2016, and they now bring in more than $1 billion in sales each. <\/p>\n\n\n\n

Guggemos\u2019 passion for research and her appreciation for detail has also made for successful partnerships with the high-end designers<\/a> on capsule collections\u2014like Missoni<\/a> in 2011, Lilly Pulitzer<\/a> in 2015, and Marimekko<\/a> in 2016. In the fall of 2019, Target re-released some of the best-selling items<\/a> from their partnerships of the past 20 years\u2014creating a frenzy online and in stores across the country<\/a>. <\/p>\n\n\n\n

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This Bauhaus-esque stainless steel \u201cSpinning Whistle\u201d tea kettle, designed by architect <\/em>Michael Graves in 2000<\/em><\/a>, is one of Target’s re-released anniversary pieces.<\/em><\/figcaption><\/figure>\n\n\n\n

Between its high-end partnerships and its owned brands, Target\u2019s strategy is clear: Gone are the days when the retail giant tried to appeal to everyone. Guggemos is after those small, committed audiences\u2014and looking for those places where the company can provide something the consumer already wants, but at a Target price. This helps the company \u201cfill a white space,\u201d as she calls it<\/a>. <\/p>\n\n\n\n

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A selection of products from Everspring, Target\u2019s in-house alternative to Mrs. Meyer\u2019s and other \u201cclean\u201d and \u201cnatural\u201d home essentials.<\/em><\/figcaption><\/figure>\n\n\n\n

The success of Target\u2019s owned-brand strategy means that Guggemos keeps adding to the list. In 2019, she helped launch eight new brands, including a healthy food brand<\/a> and a line of sustainable, biobased home essentials and cleaning supplies<\/a>. And so far in 2020, Target has added three more trendy brands to the roster: activewear<\/a>, luggage<\/a>, and a line of \u201cInsta-worthy\u201d ros\u00e9 wines. \u201cA new brand signals change,\u201d Guggemos told the Star Tribune<\/em><\/a>. \u201cWe have a general belief that you can\u2019t keep doing what you\u2019ve been doing to move the needle.\u201d <\/p>\n","protected":false},"excerpt":{"rendered":"

Target was expected to go the way of Sears and Toys “R” Us, demolished by modern e-commerce. But Julie Guggemos has been a big part of its resurgence.<\/div>\n

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