Let's get together
Collaborations are becoming increasingly popular in the fashion world. The intense hype and buzz surrounding the recent Versace x H&M and Target x Missoni collections are proof that people will go to extreme lengths to get their hands on “limited edition” luxury at affordable prices. Over 7,000 items from the recent Versace x H&M collaboration were listed on eBay at prices well over retail, some even priced higher than actual Versace items!
So what can other brands learn from the success of these types of collaborations?
1) Customers want luxury for less
The majority of collaborations taking place in the fashion world offer consumers an opportunity to get designer goods at mass retail price tags. It’s the reason why retailers like H&M, Target, Kohl’s, Zales, the Gap and countless others have partnered with premium designers to create affordable luxury designs. These retailers are known for their affordable price points, and partner with reputable and popular designers to appeal to their customer base.
2) Limited edition means infinite demand
Customers want something that belongs “just to me”. Creating limited edition collections creates demand and allows consumers to participate in an event. As evidenced by the hoards of consumers that camped out overnight for the H&M and Target collections, people are willing to go to extreme lengths to be one of the select few to own a product.
While the majority of brand collaborations are currently in fashion, there have been successful collaborations in other sectors too. In 2010 and 2011, Karl Lagerfeld partnered with Diet Coke to design limited edition bottle designs that flew off the shelves. And spirits brands like Veuve Clicquot constantly produce limited edition and luxury designs that quickly become collectors items.
So how can other brands benefit from these trends in consumption? By thinking collaboratively! With the right partnerships, brands in a wide range of categories can benefit from consumers desires for limited editions and luxe for less. Cosmetics brands could definitely benefit from collaborations with on-brand designers, or even material partners. Swarovski x L’Oreal anyone? And as Lady Gaga’s holiday collaboration with Barney’s (http://thewindow.barneys.com/lady-gagas-workshop/) proves, collaborations don’t even need to be product specific to be successful. Perhaps a Justin Bieber Zone at the Gap could bolster their falling sales? The important thing is to keep collaborations genuine, and make sure that brand partners fit the brand personality.
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