For years now, brands all over the world have been adapting to the changing demand and purchasing behaviours of millennials and Gen Z. We know they love to shop digitally, they hold brands to a higher ethical standard, they care deeply about the environment and most relevant to this corporate startup story, they grew up surrounded by technology.
Having had their own smartphones, tablets and computers from a younger age than any other generation in history, it's easy to understand the rising trend among millennials and Gen Z to personalise their devices as an extension of themselves. Dressing them in the colours and styles that resonate with their values and personalities.
In a market of electronics accessories where everything is overwhelmingly black, white or grey, this could certainly be considered a gap. Enter Target’s in-house corporate venture: HeyDay.
Launched back in 2018, Heyday is Target’s first exclusive electronics accessories brand, with a range of products designed specifically for millennials and Gen Z - based on the latest fashion, pop culture and style trends. The goal? To connect with younger customers by providing affordable, high-quality products that meet the growing demand for novelty and colour.
Parent Company: Target Corporation
Industry: Consumer Electronics
Founded: 2018
Headquarters: USA
Incubation: From scratch
Flagship Products: Electronics and accessories
Let’s take a closer look at how HeyDay went from concept to thriving in-house brand with over 150 products, including speakers, headphones, chargers, phone cases and more.
About Target
Established in 1902 and headquartered in Minneapolis, Target is a leading US retail corporation with over 1900 stores and more than 400,000 employees, all dedicated to Target's mission "To help families discover the joy of everyday life".
Its product and service segments include:
- Clothing and accessories
- Home goods and furniture
- Electronics and entertainment
- Food and grocery items
- Beauty and health products
With a net income of $2.78 B (in 2022), Target’s value creation model focuses primarily on providing a superior shopping experience, inclusive products and services, and sustainable operations. Other significant areas of operation include online retailing, supply chain services, and product development.
Part of Target’s innovation strategy includes its “Target Accelerator” programs aimed at advancing growth through innovative concepts, partnerships and collaboration with cutting-edge retail startups.
Target also builds “only-at-Target brands” in-house, including Hearth & Hand with Magnolia, JoyLab and Wild Fable. As explained by Mark Tritton, former EVP and chief merchandising officer at Target:
“We have an opportunity to better connect with younger guests. So we’ve gone all-in, working with hundreds of teens and young adults across the country to listen, learn and ultimately create new brands that deliver amazing style, quality, value—and that special spark of joy—like only Target can.”
HeyDay is one of the brands that resulted from those efforts.
Meet the corporate startup: HeyDay
Built and launched in 2018 by Target’s in-house product design and development team, HeyDey is a fashion-forward consumer electronics and accessories brand geared toward millennial and Gen Z customers.
The brand was created to meet the growing demand for trend-forward, high-quality pieces that are affordable and accessible. The brand invites guests to give their look a splash of colour and style through their devices and accessories. The line is made up of over 150 products that include fun cell phone cases, colourful headphones, chargers, speakers and more.
Considering that now, in their 20s, Gen Z has 86% less purchasing power than baby boomers did at that age and that many are struggling with student debt - the strategy to make the brand affordable is a smart one. Most HeyDay brand pieces can be purchased for under $20 and are well under the price of established brands like Apple and Samsung.
HeyDay products are available for purchase at most brick-and-mortar Target stores or through Target.com.
How HeyDay works
HeyDay primarily sells its products through Target's retail outlets and online platforms, leveraging the parent company's extensive distribution network and loyal customer base.
A big part of what differentiates the brand is its eye-catching design, which is partially the result of collaborations with different artists that use “visual design to redefine voice, culture and identity.”
HeyDay's strategies and products are based on real consumer data and pain points, specifically from millennials and Gen-Z. This insight-driven approach has enabled HeyDay to deliver products that not only meet functional requirements but also align with the fashion-forward sensibilities of its target audience.
The benefits of launching HeyDay for Target
Here are just a few of the benefits the launch of HeyDay offered Target:
- Expansion: The launch enabled Target to tap into a rapidly growing segment, catering to a wider audience with diverse needs.
- Differentiation: The introduction of HeyDay enabled Target to distinguish itself from other retailers by offering exclusive, in-house designed products.
- Adaptability: By identifying a gap in the market and swiftly launching a product line to fill it, Target has shown doesn’t just react to industry changes, it anticipates and shapes them.
- New revenue stream: The brand has attracted a younger demographic, enhancing Target's appeal to a wider audience and creating a new source of revenue.
What’s next for HeyDay?
Moving forward, Target plans to continue expanding HeyDay's product range and exploring new avenues for its growth. This includes potential collaborations with tech companies and designers to introduce more cutting-edge, stylish, and affordable electronic accessories. Moreover, HeyDay is expected to play a crucial role in Target's broader strategy to boost its digital sales and enhance its omnichannel retail experience.
Even five years after its launch, HeyDay is still making headlines with recent features in Gadgetany and HuffPost, highlighting the brand's relevance and appeal.
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