From fashion to beauty, toys to necessities, collaboration collections have captured the attention of shoppers worldwide. Who can resist the allure of a brand collaboration collection? No one! This phenomenon drives brand collaboration into one of the most popular and effective marketing strategies, which acts as a golden ticket for brands looking to stand out in a crowded marketplace.
In this constantly evolving market, collaborations have become the hallmark of trend, raising the bar for innovation and creativity. With each new collaboration, consumers' expectations skyrocket to new heights, making it a challenge to stay ahead of the curve. So, what exactly is collaboration?
The 2 Types of Brand Collaboration
Collaboration has stood the test of time, dating back centuries. While we may never know for sure when the groundbreaking partnership took place, what we do know is that collaborations today fall into two distinct categories: those that blend the best of two brands to create something entirely new, and those that leverage the star power of celebrities to create buzz.
(1) Brand x Brand
Collaboration between 2 or more brands is the most common marketing strategy yet batting a thousand. Co-branding concretely catches people’s mentality of loyalties to brands they like, and by leveraging strengths of brands, unique and appealing products are created to capture the attention of both sets of customers. Examples include:
- Louis Vuitton x NBA -
Louis Vuitton, under the direction of Virgil Abloh, launched a collaboration with the National Basketball Association (NBA) in November 2020. The collaboration featured LV's iconic leather goods and luggage styles, with the aim of celebrating the values of basketball.
- Gucci x The North Face -
In 2021, Gucci joined forces with The North Face, producing a line of clothing and accessories that revolve around the concept of exploration. The collaboration aimed to ‘revisit the archives to amplify heritage and discover new definitions of iconic’.
- Oreo x Supreme -
The collaboration between Supreme and Oreo caused a stir in the fashion and food industry in 2020. The limited edition of red “Supreme” oreo immediately became a highly sought-after item for fans of both brands. The unprecedented demand for a packet of oreo even led to bidding wars on eBay, which received bids of up to $96,100, according to Forbes.
(2) Brand x Celebrities
Rather than launching a collection of products, in most brand x celebrity cases, brand partners provide material support to the celebrity in creativity generation. The collaboration can be of different forms, including but not limited to product endorsements, co-designing products, appearing in advertising campaigns, or even launching a new product line together. Through this kind of collaboration, brands can leverage the celebrity's star power to increase brand awareness, drive sales, and establish a deeper connection with consumers.
The examples include:
- Tiffany & Co. x Beyoncé -
In the latest Tiffany campaign video 'Lose Yourself in Love', Beyoncé shines as the star and features the final song 'Summer Renaissance' from her acclaimed album. From the gorgeous jewellery pieces to the enchanting visuals, the collaboration is a true testament to the power of creativity and imagination, captivated audiences worldwide.
- Coach x Lil Nas X -
In 2021, Coach partnered with Lil Nas X to release the ‘Courage To Be Real’ campaign. Incorporated with Lil Nas X’s his song ‘Call Me By Your Name’, this collaboration successfully drew attention of the crowd and was praised for its representation of diversity and inclusivity in fashion.
- Michael Jordan x Nike -
The Air Jordan, a game-changing sneaker that needs no introduction, has left its mark not only on the basketball court but also in the fashion world. The iconic collaboration between Michael Jordan and Nike in 1984 revolutionised the sneaker industry, setting a new standard of excellence. The instantly recognizable red, black, and white design with its halo of light made Nike a household name and cemented Jordan's status as a legend both on and off the court.
Benefits of Collaboration
Now that we've explored the world of brand collaborations, let's take a look at the motivations behind these partnerships. So, why do brands choose to collaborate in the first place?
(1) Increase Exposure & Brand Awareness
Collaboration often features in the headlines. The announcement of collaboration (especially unexpected ones) can immediately generate buzz and capture the attention from the crowd, including potential customers who may not have been familiar with either parties.
(2) Cost-effective Innovation
Team up creates a fantastic two-way street that benefits all parties involved. By leveraging the expertise of the parties, fresh and innovative ideas can be generated. The pooled resources can also enhance product development processes. This creates mutual benefits to both parties, pushing the industry to a higher level.
(3) Generate Profit
Undoubtedly, profit generation is one of the primary goals of companies, and collaboration is an excellent strategy to boost profits. While it is true that limited edition collaboration products are often priced higher, this pricing strategy can create a sense of exclusivity and desirability among consumers. People are often willing to pay a premium for something unique and limited in quantity, which can be exclusively provided by collaboration products.
Drawbacks of Collaboration
Collaboration is often seen as a win-win situation, but it is not always the case. Despite the numerous benefits, there are potential drawbacks that should be considered. For instance, if collaboration is not executed well, it can harm the reputation of the brands involved. The Kendall Jenner and Pepsi collaboration is a notorious example of such failure. Therefore, it is crucial to ensure that the values of the parties are aligned and the campaign aligns with social norms and beliefs to avoid any potential backlash.
Key to a Successful Collaboration
Determining how well a collaboration campaign aligns with customer desires is the key factor in determining its success. As a generation that highly values uniqueness and specialty, Gen Z is particularly receptive to collaborations that create products that appeal to their underlying values and lifestyles. Nevertheless, authenticity is also crucial in collaborations, as customers can easily distinguish genuine from inauthentic collaborations. High-low collaborations with varying pricing strategies can create an inclusive atmosphere for all customers, regardless of their purchasing power. Ultimately, collaboration success lies in striking a balance between meeting customer expectations and maintaining authenticity.
Having read this far, have you gained more insight into what brand collaboration truly means? Now is the time to think outside the box and break free from traditional constraints, unlocking new levels of creativity. With endless possibilities, all you need is a spark of imagination and the willingness to take risks. Are you ready to join the collaboration revolution?
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