It’s a pretty competitive market out there, what with a plethora of homogenous products and services available out there for customers to choose from. With so much competition, it is undoubtedly challenging for brands -, and that’s where co-branding comes in – a smart strategy for brands to stay relevant and build customer loyalty.
A strong partnership between two brands can be beneficial for both, provided each of the two has a strong holding and reputation. How? Just like, two minds are better than one, two brands are better and stronger together, with their combined brand value being more than the individual value of either of the brands provide an even greater value for the consumer.
Through brand partnerships, you can reach out to new markets, those that you probably wouldn’t have been able to access on your own, thus helping you to capitalize on your partner’s customers and connecting with them in new ways. Such partnerships can be both short term and long term and happen across industries, so long as the collaboration is such that it not only complements your brand but offers value that would not be possible without the said association. For instance, clothing brand, Pestle & Mortar Clothing (PMC) and AirAsia have entered into a partnership to launch their collection,” PMC x AirAsia: S.E.A. Pride”. The collection comprises of clothing as well as accessory items that will be available at PMC’s physical stores, AirAsia’s e-marketplace and select Southeast Asian flights. Apart from the objective of championing Southeast Asian culture and people, connecting with consumers in a new way was the thought that propelled this partnership into action.
Many times, the reason why brands opt for certain partnerships is because of the switch in their focus to exclusivity. Partnering with a high-end, exclusive brand works just right as per the shift in their strategy to solidify their position as a more aspirational brand.
Celebrated Italian fashionista and entrepreneur, Chiara Ferragni and one of the most loved cookie brands in the world, Oreo came together for an iconic collaboration. As a part of the collaboration, Chiara published a specially created video announcing the launch of limited limited-edition Oreo, that has gone viral with over two million views. The limited-edition cookies will dress up in a new packaging dominated by Chiara’s famous eye logo. There’s more – the fashionista is also launching a contest, “Free Your Oreo Style”, wherein on buying two packs of Oreo, the buyer will get a chance to win merchandise from the very exclusive, Chiara Ferragni x Oreo capsule collection. The association will not only give Oreo a fashionable makeover but also increase Chiara’s international popularity by leaps and bounds, a win-win for both!
It’s evident that co-branding brings a range of benefits with it. However, it’s important to carefully consider all factors involved, such as fit, resources or mission alike and come up with a smart strategy to ensure the success for both brands.