In the era where online retailers are everyone’s “go-to” for a quick shopping fix, how can brick-and-mortar shops encourage consumers to come into stores? Aside from providing consumers with an “experience” that they wouldn’t get shopping online, retailers are trying something different. Through either collaborating or merging with other brands, fashion companies are coming together to increase power, exposure, and fight together against common competitors.
A few of our favourite reported collaborations?
- Kate Spade and Coach combined in a $2.4 billion deal this month
- American Eagle, Abercrombie & Fitch and Express are supposedly turning into a miniature mall-retailer conglomerate
- Beauty companies like Estée Lauder and Revlon are fighting against the rise of indie brands by taking them over
- And, Walmart has been buying up e-commerce brands like Modcloth and is in talks to buy Bonobos in order to keep up o speed with Amazon
But, what is the thought process behind these huge collaborations?
“If you’re a brand like Coach, you’re trying to figure out how to attract new customer segments — they’re not reaching as many millennials as they’d like,” Kate Spade does in fact have a good hold on the millennial scene. So, for them, it may be more about expanding into different target markets.
Although this seems like a great idea at first (and, of course, can very well be beneficial in the long run), collaborations can also be quite dangerous. Collaborate with the wrong company at the wrong time and it may just tarnish your brand’s reputation.
Our tip? Make sure to strategize your chic collaborations.
Information derived from Digiday.