Blog
The power of product collaborations: 7 ways to make it work
Today’s product collaborations are high-stakes power plays designed to carve out an exciting spot in the retail market. From Balenciaga Crocs to Dolce & Gabbana's Smeg appliance range, the best collaborations not only fulfill a need, but are able to generate the kind of want that creates queues around the block.
Whether it’s entering a new category with the help of a specialist brand, leveraging an influencer’s following, or tapping a brand for its cool factor (hello, Louis Vuitton x Supreme) - nothing will boost your audience reach like the perfect product development at the perfect time.
In fact, Supreme’s collaboration with Louis Vuitton in 2017 helped assist LVMH’s 23% profit increase, citing the collaboration as a ‘highlight’ in their recovery from a poor sales performance the previous year.
At its best, a brand collaboration can turn an entire perception of a brand around. Think the aforementioned Croc, or the Birkenstock. Once dubbed ‘ugly’ shoes, the humble slides have become some of the most talked about footwear in fashion, with Crocs collaborations including Christopher Kane, Justin Bieber and even KFC. Meanwhile, Birkenstock has managed to land with the well-heeled clients of Dior, Manolo Blahnik and Proenza Schouler. At the very least, a brand collaboration is something to talk about.
"Co-creation is a mindset shift and much more energetically aligned to the future of how we want to operate as businesses and creators"
“Gone are the days of a purely competitive mindset and a protective approach to your customer base. Co-creation is a mindset shift and much more energetically aligned to the future of how we want to operate as businesses and creators” says Style Arcade co-founder Michaela Wessels.
“I’ve always been an advocate of collaboration over competition in all forms. It’s only by bringing together different thinkers that you can create something original and expansive. Contrary to instinct this doesn’t cannibalize the individual customer bases, it in fact broadens them by enticing new consumers who deeply appreciate this dichotomy of design.“
Here’s how to make your next collaboration work for your customers, and your brand.
The 7 Secrets of a Successful Brand Collaboration
1. Test and learn to accelerate growth
A product collaboration is the ideal chance to dip your toes into a new category. Here you can test audience reaction before completely investing in expanding your own range, and create the opportunity to attract new customers via brand affinity while you’re at it.
Australian activewear brand P.E Nation leveraged the power of authentic product collaborations to catapult fast growth in the early years of brand development. Quickly known for a range that bridged the sport-to-street gap, the brand was able to test several different sectors to gauge the value of these markets. These included DC for snow and skiwear, Ksubi for denim and H&M as their tipping point for global expansion.
A collab also offers a rare opportunity for you to glean the inner workings of your retail partner, especially if their experience is beyond yours. How does their audience behave? How do they speak to them? What platforms do they use? The learnings will inspire your next move.
2. Play The Long Game To Increase Profit
While maybe you’re trying it out as a one-off brand activation, the shift will happen when you start making decisions for the long term. When a collaboration is launched, your brand awareness and acquisition will be at all-time high, which means you can quickly hone in on supercharging your retention, LTV and AOV strategies.
Take Bec and Bridge for example. Known for eventwear and elevated daywear it seems the one thing missing from their perfect party outfits is the perfect shoe. Enter Alias Mae. By Alias Mae creating footwear styles to compliment each Bec and Bridge collection, the average order value and items per cart is poised to increase. Look-alike data is a great indication of whether your audience already is in cahoots with another brand, to help the collab feel as natural as possible for consumers.
Additionally, thinking about how the activation will change your brand and customer’s behaviour, as well as your market positioning could open the door for ongoing collabs, or new brands who’s interest you’ve piqued.
Take Moncler’s Genius project for example, the Italian luxury brand was able to drive profits up 27% in 2022, thanks to its ongoing collaborations with a rotating cast of designers. Whether it's Palm Angels or adidas Originals, this strategy continually drives the brand into new audiences, and continually attracts attention throughout the year.
3. Reduce The Risk of Cost Blow-Outs
Whether it's production materials or design knowledge, there’s a lot to be said for trading brand expertise for another. Trialling new product development and testing out marketing to new audiences or in new channels can be less risky when you step out of your comfort zone with a brand that has mastered its niche. There is also the added benefit of sharing budgets and resources between each other.
If the Dion Lee and Haydenshapes collaboration suddenly seems like no-brainer, then you’ve been effectively marketed to. Known for close-to-body silhouettes and engaging use of neoprene, Dion Lee has harnessed the expertise of surfboard maker Haydenshapes to create high-end wetsuits crafted from Haydenshape’s performance-grade rubber.
4. Make Some Noise
Though it can feel like brand collabs are a dime a dozen, the key to success is to get the product not only right, but seen - stir hype, create urgency and double-down on the collectable value of the item.
Aside from iconic logos, legendary footwear and celebrity endorsements, Nike and Adidas have both managed to acquire luxury fashion’s cashed-up database. Adidas x Gucci and Nike x Jacquemus are excellent examples of creative direction and marketing awareness elevating the status of a sports brand to the luxury market.
It’s important to note, you do not have to be a major brand to start creating powerful collabs. Smaller or niche brands can make for an equally successful campaign with larger brands when what each brand brings to the table is obvious and organic. Smaller brands contrarily often have an underground cool factor and more engaged following that legacy brands consistently grapple for.
5. Invest In The Moment
Collabs can be a one off, so why not start or join the cultural conversation while you’re at it? Take Heaven by Marc Jacobs for example; tapping the Y2K resurgence led the nostalgia-driven subline to create a community via their choice of collaborators. Whether it’s Blu Marine or Daisy Ltd, these like-minded designers make it a fresh, new moment.
Think about what trends you can tap into with the help of a legitimate brand in the know.
An entire fashion movement - gorp-core - arose out of streetwear enthusiasts' newfound penchant for The North Face puffer jackets and hiking boots. It didn’t take long for brands to cotton on to the commercial appeal of The North Face, with much-hyped collaborations from the likes of Gucci, Comme Des Garcons and Maison Margiela.
6. Make It Make Sense For Everyone
Not everyone can do a Crocs collab. We know customers are doing more research than ever before prior to purchasing, so if there’s even a hint of bandwagon in your collaboration, they will see right through it. By finding the connecting thread between your partnership, and keeping your ‘WHY’ top of mind, you can ensure a strong impact is made.
On the other hand, why should you miss out on someone who loves your brand, but can’t afford it? For JW Anderson x Uniqlo, the quirky minimalist collections make this one of fashion’s most loved pairings at a price point the Uniqlo customer is willing to part with.
Or perhaps, SKIMS x Fendi? The blink-and-you’ll-miss-it collaboration reportedly banked $1 million USD in profits in one minute, with the entirety of the capsule selling out almost immediately. The SKIMS x Fendi collab is expected to be the biggest launch day since Kim Kardashian debuted SKIMS in 2019.
7. Enlist Your Influencers
While we all don’t have a Kardashian on hand, the power of the influencer-driven product launch sell-out is nothing short of a modern phenomenon. For many fast fashion brands and start-ups their marketing is already based around their databases' favourite influencers - so why not go that one step further and collaborate?
Known for her show-stopping Instagram looks and assisting Atoir to sell out a collection in 20 minutes, it made sense that Australian footwear label Billini tapped Rozalia Russian for a flashy collaboration with knee-high boots, stilettos and handbags. The best-performing collections come from influencers who know their audience and engage with them on an intimate level. These types of influencers will say ‘yes’ to the right brands, because they know what their followers want.
Lastly, don’t be afraid to get creative, you want your collab to be memorable and perhaps even a slice of zeitgeist.
