Co-branding against expectations – Apple and Hermes

Apple watch Hermes.

(Image from: apple.com)

During a special Apple event at end of August 2015, Apple have announced that they’ll be co-branding with Hermes to create a new product line – Apple watch Hermes. While this approach to co-branding will surely surprise the audience, it is indeed a meaningful case to look into.

Apple has always been known for its modern and sleek design while boasting its advanced technology.

Hermes, on the other hand, is a brand that’s based on tradition and heritage. Being a conservative brand, it appeals to customers with its timeless designs and leather goods.

Too Diverse – Yay or Nay?

These two brands in question are almost polar opposites of each other – one boasting advanced technology, another playing on tradition and heritage – so why the co-branding?

The answer is rather simple and enlightening in fact.

Being opposites, Apple and Hermes are able to fully leverage on each other’s strong brand name and image, boosting freshness and an element of surprise into both brands.

This partnership with Apple injects freshness and modernity for Hermes and keeps them at the cutting edge of luxury as well as focusing on their strengths – leather goods. As for Apple, the goal for this co-branding is direct – Apple is now a luxurious brand placed beside Hermes and Samsung is not.

Reflection

This article has given me very interesting and crucial insights on co-branding as it challenges the expectations that only similar brands should collaborate. The Apple watch Hermes shows that co-branding works best when two brands with different set of customers and associations partner up. It provides as:

1. an element of surprise to customers

2. An intrigue to customers and therefore raise awareness

3. Reach out to new target audience from partner brand

4. Aids and improve new/existing brand equity

5. Further differentiation from competitors

Another surprising co-branding would be Slim-Fast cake mix and Godiva, both brand positioning clashing with each other. However through the co-branding, it has helped improved both brands positioning and appeal to the larger market audience. EG: Slim-Fast cake mix has appeared to be as tasty as Godiva yet retaining its low-calorie factor and Godiva has appeared to be a more health conscious brand.

This is called the Spill-Over effect where co-branding does not only drive sales, but improve brand equity of both brands.

I’ve learned that by challenging traditional norms, it can bring you surprisingly positive results.

References:

Mark Ritson: Apple’s deal with Hermès is a clear signal that it now considers itself a luxury brand

http://www.prodirectsoccer.com/responsive/adidas/there-will-be-haters/adidas-there-will-be-haters-football-collection-football-boots-f50-predator-11pro-nitrocharge.aspx#/

 

SELF-TEST @ start of the module

Rated from 1-5 against the following criteria: 

Accessing, managing and evaluating online information – 4

Over the years, I rely heavily on search engines (mainly Google) to find all the information i needed, whether is it for school or for personal interests. During my polytechnic years, extensive research are required for almost every piece of work and study done. Therefore I would rate my self a 4/5 as not only am i comfortable with the idea of accessing and relying on the tons of information online, I would think of it as a ‘must-do’ so as to get more accurate and in-depth information. I understand there are certain risks in relying on online information due to online fraud and incredibility, but as i gain experience, I understand better how to filter out incredible information.

However, the internet is a big, growing world with risks and threats lurking around in every corner, and I am very well aware that I should never stop learning about this world so I can protect myself against it.

Participating in online communities – 3

Online communities is a vaguely defined term as many would find it similar to social media websites. However online communities are much more specific to interest. I would rate myself a 3 as I am still in the midst of exploring this part of the internet. A few of the online communities that I regularly check on are  Trip Advisor, Barista Exchange, Buzzfeed, Elite Daily, Quora and Thought Catalog. I would define myself as a silent reader on these sites as I’d rarely leave behind a comment or a review as I had always prefer to stay private.

 Building online networks around an area of interest – 3

Collaborating with others – 4

There are a number of platforms that encourages online collaborations such as Google Documents, Skype and many more. During my poly years, every group project was efficiently accomplished through Google Documents, Powerpoint and Skype as it maximises our time and productivity. We now heavily rely on these platforms to efficiently complete our work and through experience, I have became much more accustomed to online collaboration. I would rate myself a 4/5.

Creating online materials (text, audio, images, video) – 3

As i specialised in Marketing in my final polytechnic year, I have created numerous marketing materials (posters, brochures, websites, other marketing collaterals) with the help of Adobe Photoshop software as part of our project. With a fair bit of experience, I would rate myself a 3/5 but a lot of improvement needs to be made as I need more exposure in creating videos and audios.

Managing your online identity – 3

Managing an online identity can be tricky and tedious which involves a lot of creativity and technical skills. Although we are all ‘someone’ we make ourselves to be on social media platforms with the photos and comments we post and share, that is not all we are. That ‘someone’ we create online is just a vague reflection of our true identity. Therefore, to be able to effectively captivate and reflect my core self, I would need a lot more experience and skills to be able to establish a striking online identity.

Managing your online privacy and security – 3

Yes, I have locked my social media accounts (Facebook, Twitter, Instagram etc) so that only friends are allowed to view my account’s content. However, I find that truly securing your personal information goes beyond that one click. With all the information revolving around the internet, it is difficult to keep your personal details safe. Therefore, I am keen to learn the other methods to effectively manage my online privacy and security, rather than just selecting the ‘Private’ option.