Brand and retailer co-branding

Abstract

PurposeMany fashion brands employ growth strategies that involve strategically aligning with a retailer to offer exclusive co-brands that vary in duration and perceived fit. While growth and publicity are enticing, pursuing collaboration may change consumers' evaluation of the brand. Utilising commodity and categorisation theory, this research tests how a brand may successfully approach a co-brand with a retailer.Design/methodology/approachThree experimental studies manipulate and test the effect of co-brand duration (limited edition vs ongoing) (Study 1), the degree of brand-retailer fit (high vs low) (Study 2), and its combined effect (Study 3) on changes in consumers' brand evaluation.FindingsResults reveal that consumers' evaluations of brands become more favourable when: (1) brand-retailer co-brand make products available on a limited edition (vs ongoing) basis (Study 1), (2) consumers perceive a high (vs low) degree of brand-retailer fit (Study 2) and (3) both conditions are true (Study 3).Research limitations/implicationsIn light of commodity and categorisation theory, this study helps to understand the effectiveness of a brand-retailer co-branding strategy.Practical implicationsTo increase brand evaluations, brands should engage in a limited edition strategy, rather than ongoing when collaborating with retailers. It is also important to select an appropriately fitting retailer for a strategic partnership when creating a co-brand.Originality/valueWhile previous studies highlight the importance of perceived fit upon extension, perceived fit between brand and retailer co-brand had yet to be investigated. Additionally, this research investigates changes in brand evaluations to more accurately understand how co-branding strategies impact the brand.