Two’s company, three’s a charm in multi-brand collaborations

If your retail or restaurant brand isn’t already collaborating, it may be time to explore multi-brand partnerships as part of the experience portfolio approach to format growth. Partnerships brought to life in unique branded environments are becoming a destination for consumers, with 32% likely to travel 20 or more minutes to get to one, according to JLL research.

Collaborations have become a powerful component of today’s retail marketing strategy, with brands typically teaming up in pairs to leverage the cachet of each other and extend the reach of both in a mutually beneficial relationship. While the partnered format historically involved two-brand collaborations, brands now are experimenting with three-way collaborations that allow for more robust content creation and storytelling than ever before.

The partnered format offers numerous benefits for retailers and consumers alike:

• Extended reach. Partnered brands gain exposure to a broader audience for awareness and acquisition than they would alone. 
  
  
• Enhanced brand image. The exchange of brand equities can potentially elevate or change brand perceptions.
  
  
• Unique product lines. Partnered brands can offer limited-edition collaborations that generate buzz and traffic.
  
  
• Customer convenience. Consumers can experience multiple brands’ offers in a single visit.
  
  
• Increased efficiency. Both brands can reduce their operating costs by sharing space and staff.
  
  
• Boosted sales. The whole may be greater than the sum of the parts, with potentially increased sales and market share for both brands. 

In addition to the added exposure to consumers, the investment in a multi-brand environment can be shared across numerous partners. All parties can gain numerous benefits from the partnered format, while potentially generating a greater return on investment together through healthier profit margins than could be achieved separately.

Tripling down on collaborations: retail

Target first established the retail collaboration trend 25+ years ago and has continued to popularize it ever since, bringing high fashion to its customers through collaborations with such renowned brands as Isaac Mizrahi, Diane von Furstenberg, Lily Pulitzer, Joanna Gaines and Ulta Beauty. Each partnership is supported not only with an exclusive and/or limited-time assortment, but also a physical change in the store environment, ranging from dedicated endcaps to full, branded shop-in-shops. Target’s success has paved the way for other brands to follow suit. 

Retail couple: Burberry and Minecraft

Burberry’s 2022 “Burberry: Freedom to Go Beyond” capsule collection with popular video game Minecraft was inspired by the brands’ shared affinity for the natural world. In pop-up stores around the world, large screens signaled the introduction of the collection with replicas of the game’s pixelated digital landscape. Minecraft players were given access to matching digital wearables from the collection for their game avatars to wear.

Three’s a charm: Dick’s Sporting Goods House of Sport, Hoka and FP Movement

Spearheading the three-way collaboration trend, Dick’s Sporting Goods (DSG) recently launched an exclusive running shoe collection between DSG; Hoka, a popular athletic shoe brand; and FP Movement, a yoga and fitness apparel brand for women. JLL Design Solutions supported DSG in designing a limited-time shop-in-shop in DSG’s experiential House of Sport locations.

Tripling down on collaborations: restaurants

In the restaurant sector, Yum! Brands has championed the collaboration trend by co-locating Taco Bell and Pizza Hut, Pizza Hut and WingStreet, and Taco Bell and KFC over the years. The co-location strategy has not only reduced real estate and operating costs for the brands, but it also has enabled Yum! Brands to diversify its offerings and expand its reach.

Restaurant couple: Applebee’s and IHOP

In the spirit of nurturing its brands and embracing new ideas and collaboration, Dine Brands Global brought two of its legacy brands together as one restaurant concept: a dual-branded Applebee’s and IHOP. The interior pays homage to both brands’ iconic images, with a diverse, yet complimentary, menu. With IHOP shining in the morning and Applebee’s thriving at lunch and dinner, the collaboration captures all dayparts and optimizes operations with shared costs.

Future vision for branded triple-play environments

As this trend of brand partnering continues, the future could see an even more dynamic brick-and-mortar experience. Technological innovation will enable brands to meet consumers’ needs on a near real-time basis. Physical retail spaces may no longer have fixed roles but instead be designed with the flexibility to be transformed more frequently.

For example, imagine that a retail environment was cohabitated by different combinations of brands each season or quarter. What if consumers could build a head-to-toe wardrobe from 3 or more brands in a single fitting room? What if this multi-branded space evolved over the course of the day? What if it changed according to the mode or mindset of each consumer who walked in?

Source: JLL Design Solutions

Whether you are designing a multi-brand environment strategy for the next year or for a future-oriented strategy, success requires careful partnership selection that allows brands to trade on each other’s equities in a mutually beneficial way. In addition, a deep understanding of brand experience design will ensure that the necessary synergies are created in the environment.  

The partnered format is a powerful tool to ensure that your consumer experience is always compelling and relevant. What will your next partnership become?