How collaborations can elevate luxury brands

Setting objectives and KPIs at the beginning of a partnership is one of, if not the most crucial steps in a collaboration. Objectives, results and ways of measuring success get lost in the initial excitement starting the “creative journey” and anticipation of two brands working together. Always agree where you are starting from, what you want to achieve and where that journey is going to take you.

Decision-makers can get swept up in the creative concept and forget to address key elements of the campaign that play an integral part in establishing success. Primarily, budgeting is often not thought through with large ups from creative costs leaving little to use for activation. The budget should be a 40/60 split between creative and execution. Clear outlines should be established early on with key partners and the expected commitments from each, to ensure the return on investment.

The recent KEF x Savoir collaboration (above), resulting in the Seventy Five luxury bed, stands as a compelling testament to how shared visions and strategic objectives can lead to a successful campaign. Both KEF and Savoir are driven by a commitment to excellence in the interiors sector: KEF with its dedication to high-fidelity sound and Savoir with its meticulous approach to luxury bed-making. At the heart of this collaboration was a vision to merge KEF’s renowned audio expertise with Savoir’s exceptional bedmaking artistry.

The strategic focus of this partnership was clear: leverage the strengths of each brand to appeal to a shared, ultra-high-net-worth clientele and secure visibility and brand awareness in luxury media outlets. By targeting high-end publications and effectively communicating their unique value proposition, KEF and Savoir successfully elevated their brands amongst target audiences.

Limited-edition releases, particularly those tied to a specific event or moment in time, heighten the desirability of a collaboration. Exclusivity reinforces the luxury appeal and creates a sense of urgency for consumers.

The Lidl x Nikolas Bentel Croissant Handbag is a prime example of how exclusivity can elevate a product to cultural icon status. While Lidl may seem a strange bed fellow, merging high fashion with the everyday appeal and most the importantly accessibility of a supermarket brand, allowed democratisation for the brand reaching a new audience who may have felt not part of the luxury world.

Leveraging a strategically timed pop-up at London Fashion Week, Lidl created a perfect blend of appeal and urgency. The handbag selling-out in just two minutes highlighted the power of “scarcity” to drive perceived value and consumer action.

This collaboration not only captivated fashion enthusiasts, but also reached beyond traditional fashion boundaries, driving tremendous interest (probably the key KPI of the activation) and showing the impact of exclusivity on consumer behaviour and market trends.

This strategic move has not only elevated the handbag’s status, but also underscored Lidl’s ability to capture the zeitgeist of contemporary fashion. A win-win for both brands.

In an era where consumer attention is more fragmented and short-lived than ever, luxury brands must go beyond their traditional customer base to remain competitive. Most importantly with the advent of digital, luxury has never been younger, certainly in terms of those driving content and curation. This demographic change may mean that re-introduction and education of these new audiences is important.

At our agency, the view of brands, media and luxury landscape sits squarely upon a contemporary, of the moment outlook underpinned by the foundation a deep knowledge of the history and heritage of the brands in question.

By partnering with brands or creators that cater to different age groups and audiences, luxury houses can broaden their appeal without compromising their core identity.

Take the recent Wedgwood x Palace Skateboards collaboration, for example. Wedgwood, a 260-year-old British homeware brand known for its fine china, tapped into the rebellious, youth-driven world of Palace, a London-based skate brand. On the surface, this might seem like an unlikely pairing, but it allowed both brands to reach new demographics. Palace's youthful, streetwise customers were introduced to the heritage and craftsmanship of Wedgwood, whilst Wedgwood was able to reframe its legacy within contemporary subcultures. This fusion of tradition and modernity created a new narrative, positioning both brands as forward-thinking yet authentic.

All collaborations come with risk. In the world of luxury, a pristine brand image is paramount. Successful collaborations often hinge on the ability to accept calculated risks and to do due diligence on the project. Partners must pass the sniff test and there must also be a consideration for how individual’s actions may affect the collaboration and most importantly your brand.

Some brands may wish to engage in notoriety as it appeals to their consumers. Case in point could be Dior’s decision to retain Johnny Depp as the face of its Sauvage fragrance, despite his controversial legal troubles. It offers valuable insights into how they manage risk to drive innovation.

By maintaining their partnership, the controversy surrounding Depp provided a compelling, provocative marketing narrative and increased attention on the brand. Contrast this to the brand’s actions with Sharon Stone.

In 2003 Sharon Stone, face of Dior Skincare, made comments concerning Tibet that led to her having to issue an apology within hours, as the Chinese Government reacted swiftly to the criticism. Such was the backlash and the implication for the brands within the wider LVMH stable, she was dropped within a day. Two different reactions same brand.

This case underscores a critical lesson for luxury brands: the ability to embrace risk creatively can lead to distinctive brand differentiation and powerful storytelling. Dior’s gamble on Depp reflects a willingness to defy conventional norms and navigate public scrutiny, resulting in a standout brand narrative. Tread carefully, you are judged by the company you keep.

Every activation undertaken is global due to the impact of digital, the high propensity for travel of the luxury consumer and the reach of the brands themselves with their retail footprint. It is possible to fly around the world and see the same imagery in the windows of brand stores and in out of home advertising.

Creating a partnership that fits the required global and cultural requirements is probably the hardest element of collaborations. Choosing the right face or product that provides a one size fits all solution is challenging, especially if budget is a consideration, which it usually is.

Likewise embracing consumer trends, art and culture, trends or tapping into heritage can create meaningful connections that transcend mere consumption. However, it’s crucial for brands to recognise that cultural relevance and interpretations of luxury in other countries and history varies across markets – what resonates in one market may be seen differently in others. Understanding both global and local cultural nuances is imperative. Often brands tend not to sense check partner choices with key markets and the decision is made in the city where the budget sits.

One solution may be to look for individuals who are driving trends or cultural movements that are global, but not yet globally famous themselves. Focus on real stories and real people with a story to tell. This approach tends to provide results, while keeping the budget in check.

An interesting global activation that had caught our attention is the Crocs and Balenciaga collaborationwhich exemplifies how luxury appeal can vary significantly across different markets. This collaboration generated a mix of fascination and criticism due to the stark contrast between the brands' images. In fashion-forward regions such as Western Europe and North America, the partnership was embraced for its avant-garde and ironic nature, illustrating how high fashion can challenge traditional norms and spark viral discussions. In trend-sensitive markets like Japan and South Korea, the collection resonated with consumers seeking bold, unconventional styles, demonstrating the global allure of blending luxury with everyday wear.

Meanwhile, in luxury-centric regions like the Middle East, the collaboration was perceived as an exclusive status symbol, highlighting the role of luxury in signifying prestige. In markets where Crocs are traditionally appreciated for their practicality, the collaboration encountered difficulties in aligning with cultural expectations. This highlights the importance for brands to adapt their luxury strategies to fit local market sensibilities.

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