Collaborate – not Compete – the way forward?
Don’t compete—collaborate : Luxury brands should forge partnerships with others who target a similar audience, to maximise their reach and create unique experiences for the customer
The Indian luxury domain continues to grow at a whopping 25% CAGR, but a sure-shot success formula is yet to be ascertained. According to Niti Aayog’s CEO Amitabh Kant, the industry is capable to touch $180 billion by 2025. Brands have been branching out to find that all-important buzz, also led by social media in part. A Western trend that is now catching on in the East—collaboration.
Luxury brands are partnering with others, more often outside of their sector, to shoot out a dual-layered campaign. Historically, such a strategy has worked well globally. Some examples include:
License to thrill with a license to kill:
From the DB5 in 1964’s Goldfinger to the DB10 in the 2015 Spectre, Aston Martin has been 007’s choice of wheels. In fact, for a fictional character, James Bond has been instrumental in writing a history of success for not just Aston Martin, but also Omega and Belvedere Martini—shaken, not stirred.
Mercedes-Benz and Lufthansa Technik:
In 2015, Mercedes Benz partnered with Lufthansa Technik to form a hand and glove collaboration of comfort for a VIP flying experience.
In 2014, while introducing the advanced plug-in BMW i8 Hybrid, Louis Vuitton developed a special luggage collection to precisely fit into the available boot space. Similarly, two iconic British brands, Alexander McQueen and luggage brand Globe Trotter, joined forces for a limited-edition collection of trolley cases.