Marketing Co-Operation and Co-Branding in the Fashion Industry - Research Proposal Example

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Abstract

As strategy of co-branding receives popularity in the different business fields, where fashion industry is no exception because there have being certain positive attitudes developed towards the consistency of brands and which increase consumers’ awareness of these particular brands. The aim of this proposal is to display the importance of marketing cooperation and co-branding in the modern fashion industry with the particular attention on the benefits of fast fashion co-branding to consumers and brands. This paper also investigates the differences in uniqueness needs of fast fashion co-brands amongst the consumers and the effects of the uniqueness on the purchases perception. The paper also presents review of literature regarding concepts, theories and any other relevant information that is connected to the topic. The section of method includes the research design and data collection where the justification, advantages and disadvantages are presented. The final mission of this paper is to explore the perceptions of co-branding strategy in facilitating understanding of motivations behind the formation of cooperation between brands and to offer interested in the fashion area people methods to better attract customers and how co-branding can help them in this.

Introduction

The changes in markets, effects of shortening of product lifecycles and changes in customer preferences have made manufacturers and retailers to search for alternatives in developing and sustaining their brands. Consequently, one of the best ways in creating competitive advantage for the firm is to cooperate with the similar manufacturer or retailer in order to make brand stronger. In the modern time, such cooperation means co-branding of two or more companies regardless its sizes and degrees of innovation. All the company needs is to extend the brand, where co-branding and cooperation is the unique opportunity (Clifton, 2010). It is for same reason why co-branding, where companies cooperate on the level value chain of marketing, has become so popular. Such strategy is usually based on the assessment of operational and strategic opportunities as well as on the analysis of risks that are related to the brand equity. This paper seeks to investigate how the strategy of marketing co-operation benefits fashion industry and how the consumers’ perception of the fashion product is created. The context of this research is focused on the value of the assets of fashion brands and is connected to the concept of consumers’ expression of fashion.

The theoretical perspective of co-branding refers to the alliance of common efforts for the brands to be better presented to the public. Such is the cooperation or co-branding within fashion houses, where efforts are gathered to create the new line of clothing that would be presented to the mass (Parmentier, et al., 2015).

The purpose of co-branding is in propelling of popularity of a particular firm, and if such cooperation is successful, the results pair in the eyes of customers. Then all the brands are able to respond to the changing marketplace in the way that will increase their revenues and will generate higher consumer interest (McCarthy, 2014). The current research proposal is structures as follows. Firstly, the research question and objectives are highlighted. Next, relevant literature will be reviewed and applied to argue for the topic. In the methodology section, additional information about the topic of marketing cooperation and co-branding in fashion industry will be explained. Finally, the paper will be summarised in the conclusion section with the implications made for the interested individuals.

Research question and objectives

The main question under this research is whether and how are fashion brands affected by marketing brand cooperation. The following objectives of the paper are:

• to understand the benefits of fast fashion co-branding for both consumers and the constituent brands
• to examine the difference in uniqueness needs of fast fashion co-brands among consumers
• to investigate the effect of the uniqueness on the perception of purchases of the fast fashion co-brands

Method

The type of research that will be used in this paper is both qualitative and quantitative as it rallies numerous views on the topic in the literature and examines the topic through data collection and data analysis.

The qualitative research was made in the phase of examination of the dynamics of co-branding in the fashion context, where the relevant theories and concepts were taken from The International Review of Retail and Springer Science & Business Media, Westlaw Journal and Advances in Consumer Research. The part of qualitative research was based on the cross-sectional data included in the articles drawn from the fashion coverage of the last years of Forbes magazine, The Independent, Fashionbi, IGI Global and Jing Daily and on the basis of the interview questions and analysis of the results. Following the type of method, it is possible to say that the research choice is of mixed methods. It is because the strategies used for research include information taken from the review of literature and the survey of individuals. The sources have provided an understanding of the main benefits of fast fashion co-branding for the consumers and the brands (See Appendix A). Following the information provided, the companies have realized the strategy of co-branding as it allows them to use of knowledge and experience of brands of partners in brand management and helped to refresh the brand image and reinforce the brand equity. The quantitative part of research methods chosen relates to examination and investigation of difference in uniqueness needs of fast fashion co-brands and the effect of the uniqueness on the perception of purchases of the fast fashion co-brands. Here, the data was collected through focus group and the responds on the topic (See Appendix B).

Literature Review

In the organisational, promotional, product and ingredient level, co-branding occurs when two or more brands are combined into the joint product in order to ensure the stability and popularity of the brand. Thus, according to Grebosz (2013), co-branding is the long-term brand alliance where one product is branded and identified simultaneously by two brands. In the last twenty years, the fashion industry has significantly evolved and mass production has increased the number of fashion seasons.

Marketing and capital investment become the driving forces of competitiveness, thus making the sector able to rapidly response and have greater flexibility maintaining closer relationships between the consumers and the companies (Bhardwaj & Fairhurst, 2010). For the same reason, co-branding has become a new way to innovate and support the brand under the new business environment.

In the fashion business, the brand name is essential as it attracts consumers and creates relationship with it. In the fast fashion companies, the brand name is not only understood as the central means of marketing and product differentiation, but it also gives the brand an opportunity to have new ideas and lifestyle, which people will identify. Here, the importance of brand positioning should not be underestimated as it is the central success factor to the brand performance (Wason & Charlton, 2015).

Researchers emphasise the need to distinguish between the strategic market positioning, which refers to the competitive market standing of the company and brand positioning, which focuses on the perceptions of consumers about the products and brands of the firm. Partner brands are beneficial when they signal high-quality cues that provide information of product attributes. Here, Levy and Rook (1999), state that the foundations of co-branding’s influence on the consumers come from the theories of signaling and attitude generation. Thus, the attitude formation refers to the accessible brand attitudes and close cues that influence consumers’ perceptions of the brand partnership.

Choi (2014), states that for consumers, co-branding is a positive aspect of their lifestyles, as then companies have an opportunity to introduce loyal customers of one brand to another, build wider customer based and use another brands’ reputation.

Specific for the fast fashion brands is that they provide the customers with the benefits of trendiest items and create uniqueness in the fashion market. At the same time, there are differences between the fast fashion consumers and designer-label consumer in Asia-based marketing and brand-consulting firm. Jung (2013), considers that desire to obtain uniqueness from the brand is what drives consumers in purchasing the specific item. Co-branding, hence, is a sort of pairing of more brands that a person expects to obtain. That forms a new unique product and is important as for the consumer as for the brand.

One essential aspect refers to the consumer perceptions of brands, which appears to have social function. Thus, for the fast-fashion company it is the unique opportunity to provide its buyers with the products and service that are recognised within certain social group. The need of consumers to purchase unique thing is called by the uniqueness theory, which Shen, Jung, Chow and Wong (2014), highlight as the need of individual to experience positive emotions in the low similarity condition and negative emotions in the condition of high similarity. The uniqueness of the product is not only in the thing itself, but in the way others accept it. Therefore, such theory is very important in building strategy by the fashion firms, which they either provide uniqueness through luxury design of brand or through fast fashion co-brands. In any case, the clothing that a consumer buys will be associated with the uniqueness and differentiation of one from others (Mosca, 2016). Despite the considerations of the theory of uniqueness that call for the need to look differently from others, there are individual differences in the strengths of such need.

For the fashion firm to use such individual differences means to adopt new products before others and such way will make the company different and will give the consumer opportunity to satisfy the need to differentiate oneself (Lynn & Harris, 1997). The desire of the consumers to buy certain product reflects their perception of such purchasing. Here, the quality of the product is among the main determinants of the consumers’ subjective judgment about the brand. Other literature shows purchase decision influenced by the need for uniqueness of the product.

Research Ethics

Based on the three objectives in research ethics, there is a need to protect human participants and ensure that research is conducted the way that better serves their interests and the society in general. In addition, there is also a need to examine research activities looking at the process of research. In this research, no vulnerable individuals were interviewed and during the interview, respect for the dignity of research participants was prioritized. In addition, the protection of the privacy of research participants was ensured.

All communication in relation to the research was done with honesty and transparency. The interview with the participants was made on the voluntary basis and no use of offensive and discriminatory language was made.

Timescale

This research project will take 6 weeks. Following there is a list of tasks associated with the proposal:

Start Date

Task Description

End Date

Comments

June 1, 2016

Selection and Formulation of Research Problem

June 7, 2016

Establishing of purpose of research and its objectives

June 8, 2016

Literature review

June, 14, 2016

Search for appropriate review in literature

June 15, 2016

Research methodology

June 21, 2016

Choose appropriate methods for research

June 22, 2016

Interview Preparation

June 30, 2016

Start developing interview questions

July 1, 2016

Responses Collection

July 7, 2016

Interview sessions conducted in accordance to plan

July 8, 2016

Analysis of Data

July 14, 2016

The information obtained from the interviews is organized and final report is ready

July 15, 2016

Summarizing Research Findings

July 20, 2016

Presentation of findings of research

Successful cases of fashion co-branding

The alliances of brands, which are defined as the situations where two or more brands are joined provide means for investigation of the brand equity effects on the consumer reaction to the brand combination. Thus, Suh and Park (2009), consider that evaluation of the unknown brand becomes more positive if the firm has partnership with the well-known brand. Following such statement, it is possible to assume that consumer evaluation of the co-branded product is moderated by the degree of the partner brand’s favorability in the brand alliance meaning. So far, the world of fashion is familiar with the number of successful alliances, which have become strategic partnerships in the most effective way with the following ability to compete in the markets and offering its customers uniqueness and competitive advantage.

Greenwald (2014), reports about Christian Dior Fusion Sneakers and Colette retailer partnership, where the last one was honoured by the prestigious distribution outlet with generating great PR for the ground breaking retailer. The other perfect alliance is known to the world as Alexander Wang and H&M, where H&M continues tradition of offering limited time and high end fashion. Such co-branding has driven more people to their stores and supported the brand positioning as the trendy fashion destination. Verot (2014), states that the cooperation between Alexander Wang and H&M became the real sensation in China. Co-branding between the mass a market fashion and the high-end fashion designer appeared to be effective and influenced the consumers’ purchasing decisions. Sceptics tried to find the negative pattern in such co-branding proposing different reasons of why H&M collaborates with the designers, such as Alexander Wang and Balmain. One of the explanations that is available in the news is that the attention of media is what helps the brand of H&M to grow and focusing on media rather than on profit benefits H&M and other mass retailers who choose to collaborate with the world designers (Rodionova, 2015).

Conclusion

Fast fashion has become an important aspect in determining the strategies for other global brands with the particular focus on luxury fashion firms, which are now in the minds of consumers. In addition, the number of successful alliances with the top world designers have enabled customers to feel deeper attachment to the well-known brands. That is why co-branding is a relevant strategic means for revitalizing fashion industry. In this research, the marketing co-branding was investigated from the perspective of the consumers’ perception and the data obtained from the relevant resources has given an opportunity to value cooperation and co-branding as essential strategic move for fashion firms.

Appendices

Appendix A

Source: Grebosz, (2013).

Appendix B

Interview questions

Question 1. Name of the participant

Question 2.Age

Question 3. Occupation of the participant

Question 4. Do you often visit clothing shops?

Question 5. Is there any preference in visiting shops?

Question 6. How often do you purchase high-fashion clothing? What brands do you prefer?

Question 7. How often do you visit fast-fashion shops?

Question 8. How much do you spend on clothing a month?

Question 9. Did you know that H&M cooperated with several luxury brands?

Question 10. Did you know the names of luxury brands before they started collaborate with H&M?

Question 11. What is your opinion on the co-branded clothing? Do you think it is good or bad? Why?

Question 12. Do you think that any fast-fashion brand can be as successful as H&M in cooperating with luxury brands?

Question 13. Do you agree that need for uniqueness determines individuals’ desire to purchase luxury clothing?

Question 14. Have you purchased any luxury item? What brand?

Question 15. Would you consider buying the co-branded clothing made by fast-fashion and luxury brand? Which one?

Question 16. Does any particular designer influence your desire to purchase fashion item?

Question 17. What are your expectations from the co-branded item?

Question 18. Do you feel that co-branding collaborations affected your interest in fashion?

Question 19. Do you have an intention to purchase luxury clothing more often now?