Lowe’s wants to inspire a new generation of consumers, Gen Alpha, to become DIY enthusiasts. Enter MrBeast.
The home improvement retailer said Monday it’s rolling out MrBeast-themed kids workshops in its stores starting May 30. Children will receive MrBeast badges for each workshop they complete. Lowe’s is also releasing a series of buildable MrBeast toy kits, tied to his Swarms collectibles brand. MrBeast will earn royalties from the toy sales.
Lowe’s CMO Jen Wilson told Business Insider in an interview that the company aims to sell out of both workshop places and the $14.98 (plus tax) toys. It’s also looking to increase registrations on the Lowe’s app and encourage children and their parents to shop for extra items while they’re in-store.
“If we’re not selling out or selling through, then we’ve missed the mark,” Wilson said.
Home-improvement retailers are navigating a challenging period as high interest rates hamper the US housing market and some consumers put off big renovation projects. Lowe’s reported a 1.3% rise in same-store sales in its fourth quarter, which it said was driven by growth in its Pro, online, and home services businesses. The company is set to report its first-quarter earnings on May 20.
Lowe’s has been placing bets on what it calls a “viral and trending” product strategy — such as mini tool boxes, teeny totes, spring candles, and now MrBeast toys.
“These are sort of the lipstick effect of home improvement,” Wilson said. “Give me a small, impulsive item that I can buy that makes me feel good, that brings me joy.”
The lipstick effect is a theory that sales of affordable luxuries, such as lipsticks, rise during economic crises as people seek smaller purchases to give them a lift without breaking the bank.
Lowe’s is also actively seeking to grow its relationships with younger generations living in the homes of its millennial target audience.
“Gen Alpha actually has a larger influence on where their parents shop and what they purchase than any other influence,” Wilson said.
Jimmy Donaldson (aka MrBeast) is the world’s most-popular YouTuber, with more than 480 million subscribers to his main channel. His Beast Industries business empire spans the candy and food brands Feastables and Lunchly, MrBeast Lab action figures, philanthropic projects, and the Amazon Prime show “Beast Games.”
Lowe’s first partnered with MrBeast last year to launch its creator network. Creators can earn commissions by curating product selections on Lowe’s website storefronts. Lowe’s also provided materials for building the BeastCity complex featured in “Beast Games.”
Neil Saunders, a retail analyst at the analytics and consulting firm GlobalData, said Lowe’s strategy to increase brand visibility among a younger age group with the MrBeast partnership is a smart move because its bigger rival, Home Depot, is usually top of mind when consumers think about home improvement.
“The other thing the partnership does is get more young people interested and confident in home improvement tasks, which is something many struggle with,” Saunders told Business Insider. “It’s a sort of way of seeding demand for the future.”
Read the full article here
