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As drop culture continues to thrive in this day and age of instant gratification, many luxury and departmental stores begin to penetrate the market through working together with famous streetwear brands, coined as Collabs, short for collaborations. A notable example would be the Supreme X Louis Vuitton collab. The collab with Supreme has contributed to LVMH’s (Louis Vuitton Moët Hennessey) increased revenue by 23%. As luxury brands begin to adopt this new marketing tactic, we see that it not only works for fashion brands, but similarly for concert tickets and even pop-up food stores, fueled solely by the power of the “hype”.

 

Collaborations are amalgamations that can reach various different markets segments at one launch. In LVxSupreme’s case, Supreme taps into the high-end luxury market whilst giving LV the opportunity to gain a broader reach of the younger market. This also allows the two brands to maintain a consistent momentum throughout the season for future collections.

 

On another hand, collaborations have proven to be such an effective marketing tactic that now it goes beyond streetwear, take Target and Missoni for example. Missoni, a high-end luxury brand, is so out of reach for the average person in suburban America; Now, everyone has a shot to cop the brand’s merchandise just down the road at a local department store, Target.

 

Although the strategy is great for creating buzz on social media platforms and fetching an array of customers, the very root of its success comes down to the fact that it is a limited collection. Being a restrictive and niche way of marketing means that it isn’t a tactic you can consistently recreate to cultivate brand loyalty, but rather, it should be used as a learning tool to test the limits of a market’s buying power with the upper hand of being able to pull back at any time it is deemed unsuccessful.

 

As for local brands in Malaysia, we see local celebrity influencer Neelofa collaborating with FashionValet to release a collection of sophisticated and versatile modest wear for women. With only a handful of brands exploring this small realm, this collab only marks the beginning of how this concept can change Malaysia’s consumer landscape.

 

What brands can your brand collaborate with to take your brand’s reach to the next level?

 

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How would your brand participate in the golden age of the geek?

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