Sales in the global luxury industry are creeping up. Slowly. However, luxury brands haven’t broken out the champagne to cheer the economy’s cautious upturn; they’re looking for ways to make inroads into the buying choices of the rich and famous. And one consideration is partnering with other luxury brands who, while they don’t compete, share the same wealthy audience.
Is it Strategic Alliances or Fusion Marketing?
Call it what you will, fusing the marketing efforts of two, non-competitive companies it is the most inexpensive, yet effective form of marketing, that while totally underused, generates the most rewards: mutual profits. Best-in-class companies, working together, sharing expenses and manpower build brand equity, increase their customer base and deliver on their promise of quality service. While their customer database is a valuable asset for any company and would never be shared outright, partnering on a project by linking both their names on a marketing piece for promotion is smart business. It’s also a great way to infiltrate a different marketplace to generate new business..
Partnering to Control Secondary Markets
Luxury companies often, and unhappily, see their high-end merchandise being auctioned off on sites like e-Bay, and they can’t stop it. Gucci is one luxury retailer who has taken matters into their own hands by partnering with Christie’s (an auction house specializing in fine art) to provide a service that gives owners of vintage Gucci handbags and luggage the opportunity to have their items appraised. After the collector has her piece appraised, she’ll be notified if the piece is suitable for an upcoming Christie’s vintage sale. The beauty of this partnership for Gucci is that they are controlling their secondary market, while Christie is gaining vintage pieces directly from the owner.
Other examples of successful collaborative marketing partners that have boosted the bottom lines of each of the companies, and provided customers with a unique experience.:
- American Express partnered with Hilton Hotels and generated a specialized credit card for travel rewards.
- Fairmont Hotels teamed up with Lexus to provide hybrid Lexus cars to their best customers.
- Frequent Flyer Clubs fused with hotels, car rental companies and cruise lines.
Strategic alliances can be formed with the unlikeliest of bedfellows; there just has to be a common denominator and that is usually the customer. Luxury companies willing to recenter their brand positioning and partner with other like-minded, prestige brands will continue to create passion, desire and a new customer experience for their jet-setting clientele. Not to mention that profits will start to tick upward.