In the competitive world of business, many brands seek to stand out through innovative strategies. Co-branding emerges as one of these solutions, promoting partnerships between companies to offer a joint product or service. However, it is necessary to analyze and understand whether this strategy always brings benefits or may pose a risk to the brands involved.
According to the research conducted by Visual Objects, 71% of consumers are attracted to co-branding and approve of this type of partnership between companies. Furthermore, this strategy can contribute to increasing brand engagement and also help them differentiate themselves from competitors.
Co-branding is a powerful tool, but it must be used with caution. The idea of merging two brands to add value to the consumer can be advantageous when there is synergy between the partners. Partnerships such as Carmed, Cimed's lip moisturizer brand, and Fini are examples that can be cited. This collaboration resulted in a significant increase in Carmed's revenue. According to released data, in 2023, Cimed recorded a revenue of R$ 400 million from the sales of Carmed products, representing a growth of 1,566% compared to the R$ 24 million generated in the previous year.
Another example that can be cited refers to the partnership between Burger King and influencer Mari Maria, resulting in the launch of an exclusive line of glosses inspired by flavors from the fast-food chain's menu. The main idea behind this partnership was to offer a unique experience to consumers and explore new ways of connecting with the audience, as well as potentially expanding the presence of the Mari Maria Makeup brand in the international market by leveraging Burger King's global reach.
However, not all collaboration results in success, and this is where the risks appear.Firstly, the identity of the involved brands must be aligned. When this doesn't happen, the partnership can seem forced and even harmful. A clear example of poorly planned co-branding was the collaboration between Shell and LEGO, which faced strong public rejection due to environmental issues. This incompatibility can cause image crises and drive away loyal consumers.
Furthermore, there is a risk that one brand may benefit more than the other. If a partnership is not well balanced, one company may come out strengthened, while the other gains little from the benefits of collaboration. This can cause internal conflicts and discontent among those involved. Another point of attention is the excessive dependence on the partnership. Some brands can become so associated with a partner that, if the relationship ends, the public's perception of the company may be negatively affected. This highlights the importance of maintaining a unique identity and not relying solely on co-branding as a marketing strategy.
Furthermore, co-branding, often celebrated as a successful strategy among major brands, can easily become an exclusionary tool in the market. Partnerships between giants further consolidate their dominance, leaving smaller companies on the sidelines of this practice. However, smaller brands can overcome this barrier by seeking strategic alliances with complementary businesses within their niche, exploring authentic values and innovative proposals. Instead of relying on validation from larger players, well-planned partnerships between small and medium-sized companies can create a real impact, as long as they are based on relevance to the audience and the development of a strong shared identity.
Finally, co-branding should be adopted with strategic planning and careful risk analysis. When well executed, it can be an excellent way to generate innovation, expand markets, and strengthen brands. However, without proper alignment, it can become a shot in the foot. Before betting on this strategy, it is essential to assess the compatibility between the brands and ensure that the benefits are mutual. After all, the strategy depends on building an authentic and relevant partnership for the consumer.
