The key to any brand's success is remaining relevant to the target consumer and resonating with them through culture and consumer needs. This is even more vital in the heavily saturated world of media and in a time when consumer demands are amidst a shift as a result of the global pandemic. It could be for these reasons why in the last year, there has been a surge in fashion industry brands collaborating.
Perhaps we’ve learned that unless we stand together, we fall apart. And that successful creative collaboration can generate a serious buzz.
Why do we keep seeing fashion brands collaborate more and more?
Collaborations are important for brands as they enable them to reach a new audience. More crucially for fashion brands, collaborations unlock the ability to deliver a collection that is outside of their typical design, in a refreshing and different style. Typically collaborations are very much a short-term phenomenon, lasting a season, which also puts emphasis on the limited edition nature. As such they sell out fast which drives further brand hype.
To Reach “Aspirational” Audiences
Yes, collaborations reach new audiences, but one trend we’re seeing in particular for Luxury is the chance to cast the net wider, reaching the Aspirational Audience. The Aspirational Audiences are those who typically cannot afford Luxury but aspire to the brands, the lifestyle, the look. It’s a key market, with 37% of global consumers fitting into this category – a huge audience for brands to be tapping into.
Collaborations provide Exclusivity and Scarcity
Some luxury brands are creating a sense of exclusivity and scarcity for their audiences, driving demand for the product even higher. We saw this with the Dior and Nike collaboration on the Air Jordan 1 High OG Dior limited-edition sneaker. The sneaker was designed by creative director Kim Jones during Dior’s pre-fall 2020 show. In total 13,000 pairs of sneakers were produced and priced at $2,000 for the low-top version and $2,200 for the high-top version.
Dior launched an online draw in June 2021 (delayed because of the coronavirus pandemic), creating a dedicated microsite where customers could register to purchase the sneaker. Dior’s president, Pietro Beccari, told WWD that five million people registered on the microsite upon the site’s launch. The limited range of sneakers has increased the high demand for the product. The fashion collaboration shows how brands can create extreme hype and demand when done properly. Dior and Nike, two massive style brands in different markets coming together and merging “luxury streetwear”.
The New Gen Z Conscious Audiences
Luxury brands are also collaborating with alternative brands in order to reach Gen Z audiences. A great example is a collaboration between Gucci x The North Face, announced in November 2020 on Gen Z’s playground, TikTok, with the campaign celebrating the great outdoors.
The capsule collection between Gucci and The North Face arrived at a moment when luxury brand revenues had slowed down because of the pandemic. The North Face is portrayed as a fearless and relatable brand compared to the super glamorous Gucci. But for Gucci, connecting with a brand that has serious sustainable bonafide tells an important story to younger audiences who value and demand environmental stewardship from brands.
For The North Face, the collection reinvigorates the got-to-have-it factor that High Fashion brings and that Gucci delivers with a free-spirited campaign that drives cultural relevance so critical to this audience.
The #thenorthfacexgucci gained over 8.6m views on TikTok, which shows the popularity among stylish Gen-Z TikTok stars and celebrities. There is no question this collaboration has a huge driving force in reaching younger audiences.
Especially post-COVID, the data overwhelmingly shows that Gen Z prefers brands that stand for something and that live up to their values through action, with 89% expressing a brand preference for brands that seek to help solve community problems. This brand collaboration example shows brands don’t need to reinvent themselves to attract Gen Z, but they do need to meet this generation that lives to support and connect.
Ultimately…
Brand Collaborations are enabling brands to create in sectors they wouldn’t traditionally have ventured, giving them access to newer (and in many cases younger) audiences, and often shifting the brand market perception, creating cultural relevance. For the consumer, collaborations are too, creating new and exciting products and experiences.
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