Target reopened its San Francisco-based showroom, which features an array of Smart Home products. Open House officially opened in July 2015 to give consumers hands-on experience with Smart devices. The company will begin selling its own Internet-connected Smart Lamp online under Threshold, a premium home furnishings brand.
Target is taking a major step forward, by designing and selling its very own Smart gadget, which played out very well for Amazon. If the lamp is successful on the market, it very well could become the company’s first private-label Smart device. With the Smart Home market expected to continue growing and be worth $16.2 billion by 2020, Target is feeling pretty hopeful.
“We’re figuring out what it will take to actually create these products, not by doing that in a boardroom with Post-it Notes and a whiteboard, but by walking the talk and trying it out,” said Gene Han, who heads Target’s San Francisco innovation office.
Analysts always have a saying about private-label products and that is they offer a higher profit margin compared to third-party products. This is hardly new for the retail market. Just take a look at Wal-Mart and Lowe’s, which have had great success creating and selling their own products.
In the past year, Target has placed greater emphasis expanding its private brands. The idea is to set its stores apart from the major competitors. With the reopening of the newly renovated Open House showroom, consumers will have the opportunity to see Smart devices in action.
According to a report released by Parks Associates, in 2016, nearly 26 percent of American homes with high-speed Internet also had a Smart Home device. This number is compared to 19 percent from the year before.
To learn more about the Threshold Smart Lamp, please visit the company’s official website.