Monday, November 23, 2020

The power of co-branding

    


Everyone is doing co-branded partnerships these days. Across retail and DTC, consumer brands are teaming up together to leverage the power of their independent brands and drive more buzz to their products. Just a few of the latest -  Ulta and Target, Peloton and Spotify, Lyft and Chase, Madewell and thredUP, adidas and Allbirds.

This strategy has become even more prominent in recent years. As industries increase in competitiveness, co-branding is a great way to drive new consumers to your brand by leveraging the customer base of your partner.  

One of the most recent partnerships was between Kith, Coca-Cola and Pendleton. They launched a hoodie (link below) that sold out in minutes.  https://kith.com/products/kith-x-coca-cola-x-pendleton-terry-williams-3-hoodie-ivory-multi

While this is clearly an example of a partnership that worked, there do seem to be limits to what a reasonable partnership can be. I don't think there are many combinations of brands that could get away with a 3-way partnership - at a certain point your product starts to look like a billboard vs. a thoughtful partnership of brands with a shared objective. 

When forming a partnership with another brand, its important to make sure the union of your brands feels authentic and purposeful. Consumers today can see right through inauthenticity (cc: Gap removing their election-themed "unity hoodie" after backlash).  While Kith may have been able to pull off a 3-way partnership because its Kith and they have a wild cult following, it's important to remember that not every brand has that same cache. 




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