This is a widely disseminated strategy between two or more brands for the promotion of an action, product or service that provides added value to the consumer. The sum of both brands leads to the differentiation of the parties involved, especially from the competitors, so that they can reach different markets. This strategy can be used in situations where the company is operating in a market that is over-saturated with brands and ordinary offerings — think about commodities or fast fashion. The sum of forces between complementary brands creates a competitive advantage in this scenario.

Reaching new markets is one of the co-branding objectives and it works particularly well when it’s a market where the brand has never worked or had any experience. In this case, the proximity to an established brand is the best way to “hitchhike” and shorten the path to this new segment.

Some precautions should be taken so that these partnerships are successful. First, we must point out that the brands have affinity and that the relationship must have a “win-win” nature, ie, beneficial for all parties involved. A simple rule for choosing the partnership is to assess whether the result of co-branding will be greater than the value of brands acting alone. Besides that, checking if the brands are in the same level of importance and recognition in the market is also needed. Or else, one brand may give more than it receives in terms of positive image attributes.

Finally, it is needed to have some alignment between the values, philosophy, business vision and ideology of the brands involved, so that there is no clash of cultures. It is crucial that companies interested in implementing co-branding strategies never forget their purpose. They need to think about cooperation in order to deliver real benefits to the consumers.

Before settling for a co-branding strategy, think: what will my audience gain from it? And start from there.