Co-branding Casts a Wider Net

We’ve all seen it before. Whether it’s a Swarovski encrusted reusable Starbucks cup, an Hermés-made Apple Watch band or Patrón’s collaboration with Lalique to make limited edition crystal bottles, today's brands are using co-branding as a strategic alliance to speak to consumers outside of their known market.

In this edition of The Culturalist, Daniel Passos , Head of Digital at DAf, gives us his perspective on what brands can hope to achieve by forming these partnerships with other, sometimes seemingly unrelated, brands. 

When we talk about co-branding, it’s a technical term, it gives you a direct knowledge of what it is. If there are two brands, most likely they have two different target groups.” Brands can apply the “if you like X you’ll love Y” approach.

The simplest level of co-branding is a visual linking of the two, he says. Contests on Instagram abound, go on a weekend spa getaway and take home a box of sparkling wine. Collaborations can drum up extra interest in product A through product B and vice-versa.

Co-branding can be so much more

More and more we are seeing co-creations between two brands, say Gucci and Adidas, or even people-as-brands in the pairing between Louis Vuitton and Yayoi Kusama, a collaboration which has featured art installations and yielded more than 450 pieces in the collection, from clothing to fragrance.

Passos says this heightened level of co-branding “created an experience that neither of the brands could create on their own, and it’s so unique, that you actually also capture a third target group, people that are watching for new movements, and who are always attuned to what’s going on right now.” 

Co-creation forges a bridge between people and luxury brands

In many cases, Passos says, people are not interested in buying luxury brands because they do not fit their own ethos, or the consumer’s vision of themself. Even when people can afford these items, they are not interested until they see the connection to their own identity or the reflection of who they are in the brand.

In the case once again of Louis Vuitton, which has been collaborating with singer songwriter Pharrell Williams for years, Passos says, the brand makes an entry point to the brand for people who would otherwise have found it off-putting precisely due to its high prestige.

With Pharrell as part of the brand, these people feel a connection, a certain tugging at their heartstrings, which translates to sales.

The most interesting thing about co-creation is that you can speak different languages and broaden the way you communicate. It is not just about adding visibility, or a way of making your brand look more luxurious, it is also about connections. How do I connect with other people from other cultures, creating something that is unique but still makes sense to my brand?

Passos goes on to give three examples of luxury brands who have gone beyond the traditional to become relevant outside of their luxury sphere without compromising quality.

Rolex

Rolex has sponsored the French Open (Roland Garros) since 2019, thereby cementing itself into a sport that is watched worldwide and spreading its appeal beyond its traditional consumer. 

Donatella Versace

Donatella Versace designed dresses for Taylor Swift’s Eras Tour, the first music tour in history to gross more than US$1 billion, putting her name in the mouths of millions of people who might otherwise be unaware of or not interested in her brand.

Dior

Finally, Passos asks, “why did Dior make the clothes for BLACKPINK? Who would ever imagine Dior making clothing for a K-pop band to wear during their concert? If you think about it, it doesn’t seem to make sense. But then when you see it create a visually beautiful thing, when all comes together, it does make sense,” he says.

In summation, Passos leaves us with his thoughts that co-branding is not just possible, it represents a path forward for many high-end brands. 

"Luxury brands have a tendency to try to speak from their past and from where they originated, but nowadays if you want to be a contemporary, dynamic brand, you have to co-brand. You have to collaborate and understand the culture that people are living in right now."

Love luxury? Learn more about how these brands create mystique in the previous edition of The Culturalist: What If We Told You a Secret About Added Luxury Value?

Learn something new? Subscribe, like or comment to let us know - and don't forget to share with your network.