Does co-branding sound familiar, Retailer? If you’re interested in strategic alliances, benefits and Retail business growth, we’re sure you’ve come across the term co-branding on more than one occasion.
Do you want to boost your business and get the maximum benefits? We tell you all about strategic alliances, what they are for and some of the best examples that reflect them.
Co-branding or strategic alliance between companies is a long-term agreement between two or more companies, with the aim of collaborating in a specific business area.
One of its main advantages is that it allows companies to take advantage of synergies and access new markets, reduce costs, increase benefits and efficiency …
To better understand the impact that such agreements can generate, we explain in detail their main benefits:
1. Better perception in the market: “unity is strength”
The market reacts positively when two companies consolidate their strengths. Each can also benefit from the reputation and corporate image of the other. At the same time, such a union weakens the position of the other competitors in the market.
2. Brand Consolidation
Strategic alliances or co-branding are a fundamental part of the brand strategy of many companies. Thanks to them, they reinforce their reputation in the market by association with the allied company.
3. Resource Optimization
Unlike mergers and acquisitions, strategic alliances do not entail high costs. They maintain a certain commercial autonomy and the companies involved only share a certain amount of resources for mutual benefit.
4. Strenghening human capital
Know-how is undoubtedly a company’s most important asset. Employees of both companies can learn from each other’s experiences and skills. It is therefore a natural investment in human capital.
5. Access to new markets and customers
One of the main advantages lies in access to new markets and customers. In some cases, a strategic alliance provides access to new markets with a solution that would not have been possible for either company separately. It can also happen that one of the allies gives access to new markets to the other.
Famous co-branding that made big benefits (yes, also in Retail!)
McDonald’s has done a lot of co-branding with a number of well-known brands. Perhaps the longest lasting is the one with Coca-Cola, which has become the beverage of reference in all its branches worldwide.
McDonald’s continues to bet on strategic alliances on a constant basis, for example with Oreo for its ‘McFlurry’ product, a dessert that brings together the best of both brands.
Co-branding between clothing or retail brands in general is also quite frequent. One of the most active is H&M. The Swedish firm collaborates with many other brands from various sectors. One of its most prominent fashion alliances is with Versace. The goal is to offer designer clothes at an affordable price.
The collaboration between Nike and Apple goes back almost two decades, when the first iPod was launched. Since then, the two brands have continued to work together to continue offering functionalities in their products that provide their customers with the best of their sporting goods coupled with wearable technologies.
Thanks to Uber’s collaboration with Spotify, customers can entertain themselves by creating their own playlist to listen to during their ride.
If big brands are looking for partners, why not you?
Find out here all about alliances