Introduction

What’s the Story? In 2021, we saw a strong recovery in consumer demand worldwide—especially in the apparel and footwear category. In this context, we continue to see companies turn to brand mashups, whereby two brands collaborate with each other to launch new projects and products. This strategy creates synergies that effectively leverage the unique strengths of each brand, and the limited-edition nature of the products drives sales. In several cases, brand mashups comprise partnerships between highly dissimilar brands—creating highly differentiated products, and ones that have the social media “shareability” factor, magnifying the marketing impact of these alliances. In this report, we look at recent brand mashups that are helping fashion (apparel, footwear and accessories) brands and retailers sustain consumer interest and drive recovery in demand in a pandemic-impacted retail environment. We break down the three primary advantages of the brand-mashup strategy in the global fashion industry.

Why It Matters

While brand mashups have existed for years, this strategy has become more important in the pandemic-impacted retail landscape, as companies look for ways to remain relevant and attract customers. US consumers are drawn to co-branding partnerships that are executed efficiently, according to a May 2021 survey by Visual Objects, a US-based portfolio website for business-to-business consumers seeking leads:

• 71% of respondents said that they enjoy co-branding partnerships—encouraging multiple brands to come together to offer a unique product.
• 61% of respondents occasionally avoid buying products with negative brand equity—highlighting the need for brands and retailers to carefully choose a co-branding partner.
• 43% of respondents would try a co-branded product from a brand or retailer that they already support—making cross-branding a strong opportunity to re-engage returning shoppers.
• 41% of consumers would consider a brand’s values and mission when making a buying decision—emphasizing that co-branding partners should ensure that their values align.

Brand Mashups in Fashion: Coresight Research Analysis

It is important for apparel and footwear brands and retailers to measure the return on investment (ROI) of brand mashups by analyzing key metrics such as resale price. In Figure 1, we present selected brand mashups in the global fashion industry in recent years. Below, we discuss some of these mashups in detail as we explore the three major advantages of the strategy for fashion brands and retailers.

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Figure 1. Key Metrics of Select Brand Mashups in Fashion [wpdatatable id=1606]

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Source: Company reports/eBay/Farfetch/Lyst//The RealReal/Stockx/WWD/Coresight Research 1. Drive Consumer Engagement  Brand mashups can drive online engagement as consumers are attracted by the limited-time appeal and uniqueness of collaborations. Customers are likely to use social media to share content related to a brand mashup if they find it interesting or appealing. A machine-learning algorithm by Launchmetrics, a digital marketing platform, analyzes the impact of a brand’s marketing and public relations (PR) efforts across channels and markets, with the resulting “media impact value” (MIV) being a monetary value that provides a measure of the return on investment (ROI) of a marketing campaign (taking into account factors such as the reach and quality of the content). This enables brands to compare results across various voices, channels, media types, time periods, products and regions, for example, to benchmark performance. In Figure 2, we present three brand mashups involving apparel and footwear companies that managed to generate strong MIV within one month of the collection’s launch—and we discuss each collaboration below.

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Figure 2. Select Apparel and Footwear Brand Mashups: Media Impact Value Within One Month of Launch (USD Mil.) [caption id="attachment_139287" align="aligncenter" width="700"] Source: Launchmetrics [/caption]  

• Jimmy Choo x Timberland

Luxury footwear and accessories company Jimmy Choo, owned by Capri Holdings, collaborated with outdoor apparel and footwear brand Timberland to launch a Jimmy Choo x Timberland collection, featuring four products, in September 2020. The collaboration became an instant hit and generated $1.8 million in MIV within one month, according to Launchmetrics; in that time frame, 603 posts generated an average of $3,050 each in earnings. Furthermore, the two brands saw an additional $2.6 million in estimated MIV in the following month, when three posts were shared by the campaign’s photographer, actor Cole Sprouse.

• Supreme x Nike 

Apparel and footwear brand NIKE collaborated with US-based clothing and skateboarding lifestyle brand Supreme in May 2021 to launch the Supreme x Nike collection of sports shoes. Launchmetrics calculates the first-month MIV of the brand mashup to have been more than $1.6 million, with 1,330 placements across social media and other online channels. Furthermore, in October 2021, the two companies launched the Supreme x Nike Cross Trainer Low Fall 2021 collection of graphic T-shirts. The continuing series of collaborations between NIKE and Supreme highlights the ongoing demand for these powerhouses’ alliances and the companies’ seriousness in driving revenues via such alliances.

• Staud x New Balance

Luxury brand Staud and apparel and footwear brand New Balance have entered into several collaborations since mid-2020 to drive consumer engagement and boost revenues. In May 2020, these companies unveiled their first activewear collection—Staud x New Balance—which achieved $855,000 in MIV, with 273 placements from May 11 to June 12, 2020, according to Launchmetrics. 2. Tap New Audiences and Enhance Brand Status  When two brands collaborate, each partner gains access to the other’s existing customer base and can benefit from the popularity/status of the other company. Furthermore, limited-time availability amplifies the sense of urgency for shoppers to purchase the products.

• Yeezy x Gap

In June 2021, apparel specialty retailer Gap and Kanye West’s streetwear brand Yeezy launched the Round Jacket in blue and black colors, retailing at $200, as the first product of the 10-year Yeezy x Gap collaboration signed by the two companies in June 2020. Resellers have priced this product much higher—the jacket cost $630 on Stockx, as of November 29, 2021. In September 2021, Yeezy x Gap rolled out a $90 hoodie in six colors for both adults and kids. In Gap’s third-quarter 2021 earnings call in November 2021, the company noted that the product delivered the most sales in a single day in Gap.com history. Furthermore, Gap’s management said that more than 70% of the customers buying the Yeezy x Gap hoodie collection were new to the company, and the collaboration is unlocking the power of a new audience for the apparel specialty retailer, particularly Gen Z and Gen X men from diverse backgrounds. While the financial terms of the 10-year deal between Gap and Yeezy have not been disclosed, Kanye West said that his net worth had increased to $5.0 billion, up from $3.3 billion, after inking the deal with Gap. Similarly, Gap’s market capitalization increased by over $1 billion, with the company’s stock increasing by 42% when the deal was announced, according to Gap. The deal has a renewal option in June 2025. [caption id="attachment_139288" align="aligncenter" width="700"] Previously owned Yeezy x Gap jacket for sale at nearly three times the original price on Stockx
Source: Stockx [/caption]   3. Expand into New Categories and Markets When they involve companies from different retail segments, brand mashups provide companies with access to new markets and trends.

• Coach x Champion

In February 2021, Hanesbrands’ Champion banner collaborated with Coach, owned by Tapestry, to launch Coach x Champion. The limited-edition collection featured leather jogging pants, leather bags, jackets and sweaters, and products retailed for $95–$2,300. The collection combined Coach’s statement materials (such as shearling and leather) with Champion’s sporty elements (such as jersey fabric). At the time of launch, Coach’s Creative Director Stuart Vevers said that the partnership will allow Champion to explore a “more elevated product.” Vevers also forecasted a strong response to the collection and expressed his hope to continue working with Champion in the future. Ned Munroe, Chief Global Design Officer at Hanesbrands, noted that this is a creative connection that would generate synergy between the partners. He said that the collection will appeal to both the Coach customer and the Champion enthusiast looking at recognizable silhouettes such as Coach’s jackets and sweatshirts, although in elevated materials. Furthermore, at the company’s Investor Day event in May 2021, Hanesbrands’ Group President of Global Activewear, Jonathan Ram, said that collaborations with other brands, including with Coach, are strong growth opportunities for the Champion brand—and with these collaborations, Hanesbrands is aiming for category expansion and enhancing consumer reach. The company noted that it is creating more new opportunities for global collaboration through its competitive advantage and goodwill. [caption id="attachment_139289" align="aligncenter" width="701"] Previously owned Coach x Champion’s leather shorts and jackets for sale on resale platform The RealReal
Source: The RealReal [/caption]  

• The North Face x Gucci

The North Face (owned by apparel and footwear brand owner VF Corporation) collaborated with the luxury brand Gucci (owned by Kering) to launch The North Face x Gucci collection in January 2021. The collection featured outdoor clothing, footwear, jackets, bags, tents and sleeping bags. it was based on The North Face’s original designs from the 1970s era. The limited-edition collection helped The North Face drive a significant increase in consumer engagement and sales, according to the company. During VF Corporation’s earnings call for the fourth quarter of fiscal 2021, held in May 2021, Matt Puckett, CFO at the company, said that The North Face x Gucci collection had earned the largest media campaign in The North Face’s history, with over 17 billion impressions, yielding 100% sell-through of all collaboration outwear across the globe. [caption id="attachment_139290" align="aligncenter" width="700"] The North Face x Gucci collection on the Gucci online store
Source: Gucci [/caption]  

What We Think

Brand mashup is a useful strategy for brand owners and retailers looking to increase brand awareness, bolster brand image and reputation, increase sales and expand into new markets or categories. Brand mashups bring together the most unlikely parties at times and offer an element of surprise and uniqueness to consumers. However, a co-branded collaboration needs to be strategic and logical, and brands and retailers should be careful while choosing partners—negative brand equity can have a substantial impact on the outcome of the alliance. Furthermore, both companies need to have shared mission and values or some commonality to their brand image; otherwise, they risk eroding brand reliability. Implications for Brands/Retailers

• Brand mashups harness creativity and innovation, with partnering companies striving to create differentiated products, synergize their resources and generate a competitive edge. Apparel and footwear brands and retailers can look to collaborate with brands in different retail segments, such as luxury and beauty, to drive creativity and consumer curiosity.
• Partnering companies can benefit from the status and existing customer base of the other brand—which helps to bolster sales. Furthermore, brand mashups can help brands and retailers to learn from the strategies of those they collaborate with and draw insights from markets to which they do not otherwise have access.
• Brand owners and retailers considering a co-branding opportunity should understand the image and values of the other brand. Identify the compatibility of the two companies in terms of strategic goals and campaigns and evaluate any potential risks.
• It is important to measure the ROI of brands mashups through data on key metrics such as resale price, social media impressions and sales.