Benefits of Brand Collaborations
by Adwright, 26 March 2021
Collaborations, or collabs for short, have been the rage in recent years. Brands within and across industries are pairing up to offer fun and new experiences for consumers. Collaborations happen when two brands team up to launch a novel product, service or experience. It is a marketing and advertising strategy that aims to find success for both brands in the partnership. This article will discuss the benefits of collaborations and how brands have utilised this strategy to their advantage.
II. Why collaborate?
i. New audience and new markets
Each brand has its own set of customers. When two brands collaborate, they will now have access to a different group of customers. The collaboration leverages each consumer segment’s strength and builds reach, which will increase trust and eventual patronage.
Often, the two brands have groups of customers with differing characteristics. Taking one of the most famous collaborations as an example – Louis Vuitton (LV) and Supreme – Supreme has a young fanbase who values independent thinking and original expression. In contrast, Louis Vuitton has a mature fanbase who desires prestige and classic designs. Supreme’s original fanbase viewed Louis Vuitton as traditional and stuffy, while Louis Vuitton’s customers viewed Supreme as childish and lacking prestige.
Louis Vuitton and Supreme’s unexpected but effective collaboration (Image credit: The Cut)
When Supreme and Louis Vuitton collaborated, it brought these two groups of customers together. Supreme was thrust into Louis Vuitton’s customers’ attention, and vice versa. It changed the perception that customers had of each brand, with Supreme elevating its prestige and Louis Vuitton shedding its “old-fashioned” image. The collaboration allowed Louis Vuitton to tap onto Supreme’s younger fanbase, while Supreme could appeal to a more mature customer group. This strategy has led the brands to enter into new markets.
ii. Get noticed
An unexpected collaboration sets people talking, hence creating publicity for the brands involved. In a crowded marketplace filled with many brands, collaboration is one way for brands to stand out and be heard. Furthermore, when a smaller brand collaborates with a bigger brand, the former can capitalise on the latter’s reputation and larger customer base. Typically, the bigger brand sees potential in the value within the smaller brand. Thus, the collaboration positions the bigger brand as an industry leader who has the foresight to place itself with the next up-and-coming trend.
Cotton On and Irvin’s collaboration set people talking (Image Credit: Cotton On)
An example of this in Singapore is the collaboration between Cotton On and IRVINS. Cotton On is a well-established Australian fast-fashion brand, while IRVINS is an increasingly popular snack brand. The collaboration catapulted IRVINS’ name to a broader audience base, while Cotton On positioned itself as a fashion brand cognisant of Singapore’s trends. The partnership created much hype and brought about strong brand awareness for both brands.
iii. A new experience
Collaboration gives customers a new experience, which creates positive buzz and reinvigorates brands. It allows brands to showcase their trendiness and relevance while resonating with modern consumers. Collaboration can also signal to consumers where the brand is heading in the future.
A new experience being greeted by WoBo at Courts’ new digital-themed store
In Singapore, GT Wonder Boy, or “WOBO”, collaborated with COURTS to open its first IoT-themed store in the new Funan mall. An open display platform showcased WOBO, who greeted customers entering COURTS’ new store. The collaboration promoted COURTS’ focus on digital innovations while creating a novel retail experience. The positive buzz created around this experience showcased both COURTS and WOBO as forward-looking and innovative brands that are ushering in a new future.
Collaborations are fun and effective ways of getting your brand in front of a new consumer base while signalling to consumers that your brand is innovative and trendy. Interesting collaborations liven up the marketplace while offering consumers novel ways to experience a familiar brand. Collaborations also create marketing buzz, which raises awareness about your brand. If you are looking to shake up your branding identity and pique your consumers’ interests, or if you are a brand looking to get in front of a new consumer base, collaborations may be an option to consider!
Adwright has accumulated a wealth of experience in helping brands stand out from their competitors with unique and attractive brand stories. For over 20 years, Adwright has collaborated with clients that range from local SMEs to global corporations, spanning across a myriad of industries. We provide integrated solutions in branding, design, communications and beyond. Partner with us and embark on your unique brand journey today. To find out more about the services that Adwright provides, call us today at +65 6227 7227 or email firstname.lastname@example.org.
(Cover Image Credit: Women’s Wear Daily)