Macy's recent success can be attributed in large part to the chain's emphasis on tailoring product selection and promotions to local markets as part of its "My Macy's" micro-marketing initiative.
Part and parcel of that effort has been the chain's emphasis on specific demographic segments. Last year, for example, the company announced plans to become "the store of choice" for Millennials by 2015. Now the chain appears to have similar plans for Latinas, as well.
Earlier this week, the department store announced an exclusive deal to market a new fashion brand inspired and fronted by Thalía, an actress and popular music star who was born and raised in Mexico and later became a U.S. citizen. The new line called Thalía Sodi, which will include dresses, pants, tops, shoes and jewelry, is expected to debut in 300 of Macy's stores across the country as well as on Macys.com in spring 2015.
"Hispanic women are one of the fastest-growing consumer segments in America and already important customers for Macy's in major markets across the country," said Terry Lundgren, chairman, president and chief executive officer of Macy's, Inc., in a statement. "With this new Thalía Sodi brand, sold only at Macy's, we will have an even stronger fashion offering that directly addresses the style, fit, and color preferences of this customer."
"We saw white space in this more mature, meaning nonmillenial, Hispanic or Latina customer," Jeffrey Gennette, chief merchandising officer at Macy's, told The New York Times. "We were not addressing her as fully as we want to."
"I am very excited and honored to partner with Macy's, an iconic American brand that believes in our community, to launch a collection that will be fabulous, fun and flirty — truly representative of who I am as a Latina," said Thalía. "This new fashion venture of apparel and accessories has been a longtime passion of mine and I can't wait for my fans and women from all over the world to wear my collection."
How likely is Macy's to succeed with its Latina target marketing strategy?