Co-branding is everywhere. Brands in all industries, well-established or newly created young brands, all seem to give in to the temptation of collaborations, probably because benefits are significant! Sportwear brands have understood this very well and multiply the collaborations with other brands, mostly with luxury fashion brands, to create buzz and value to both of the brands. Many co-branding examples probably come to your mind now, but we are going to focus on three brands - Adidas, Puma and Under Armour – and on three benefits of co-branding.
To reach new customers
In the past few years, we have seen an increasing number of collaborations between sportwear brands and luxury brands: Adidas x Chanel (2017), Puma x MCM (2018), Adidas x Prada (2019), Puma x Balmain (2019), Nike x Dior (2020). By collaborating with luxury brands, sportswear brands are tapping into a growing market. Most importantly, it is a win-win strategy: the two brands can extend their visibility to a market to which they may not have had access before. One reason of this success is that the brands release only limited-edition capsule collection, and more a product is rare, more it will be wanted.
To reshape the brand’s image
One of the biggest weaknesses of Under Armour (UA) is that it is well rooted in sports, but contrary to Adidas or Puma, the brand does not have a lifestyle label. To turn the tables, UA have decided last year to collaborate with the fashion brand, Palm Angels. A “Recovery” capsule collection including hoodies, sweatshirts, jackets in striking colours was created. In a press release, UA said it will make “partying and living easier”. Thanks to this collaboration, UA aimed to get people wearing the brand on the streets and out of the gym. One year after this brand crossover, UA still has a long way to go from a performance brand to a fashionable sportwear brand like its rivals, but things may change fast!
To generate lots of buzz and raise awareness
On this point, Adidas, the mastermind when it comes to cross brand collaborations is probably one the best examples. The competition is very intense in the marketplace that brands have to innovate and think out of the box in order to be heard and raise awareness. For instance, a collaboration with a luxury brand won’t surprise much consumers, they are used to it, but a collaboration between two brands of two very different markets like Adidas and IKEA will.
The collaboration with IKEA is expected for 2021 and will probably turn viral. A new collection of accessories, apparel to workout at home will be created. This collaboration mixing Ikea's speciality (the home) with Adidas' (sports) aims to make sports accessible for everyone. Stay tuned!
References:
· Piat, M. (2019, November 15). Nike x Dior, Prada x adidas... Pourquoi les marques de luxe et de sportswear collaborent ensemble ? Purebreak.Com. https://www.purebreak.com/news/nike-x-dior-prada-x-adidas-pourquoi-les-marques-de-luxe-et-de-sportswear-collaborent-ensemble/185446
· Brooks, C. (2019, July 3). Cross Brand Collaborations: ‘x’ Marks the Spot. Red Hot Penny. https://www.redhotpenny.com/insight/cross-brand-collaborations/
· Bain, M. (2018, June 19). Under Armour is collaborating with Palm Angels and A$AP Rocky. Quartz. https://qz.com/quartzy/1308286/under-armour-isnt-giving-up-its-efforts-to-break-out-as-a-fashion-brand/
· RÖRLIGHET - IKEA and adidas to facilitate better at-home workouts. (2019, June 4). Inter IKEA Group | Newsroom. https://newsroom.inter.ikea.com/news/r-rlighet---ikea-and-adidas-to-facilitate-better-at-home-workouts/s/ecff46ea-d204-4a3d-a56e-4b7cbcbbe0f3
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