Co-branding is when two (or sometimes more) companies work together to create advantages in the market for themselves. The collaboration could for example take place in the form of a new product, service or sponsorship.

The idea behind co-branding is to combine two or more, trademark-specific, individual strengths and advantages in order to boost interest amongst consumers, or to make the joint product or service stronger than the competitors’ versions. Co-branding means that the link between the trademarks – and the joint marketing – will lead to positive synergies for the companies concerned. 

Co-branding is a relatively new concept within business speak. Interest in co-branding has increased in line with globalisation at a time when many trademarks are at risk of disappearing and companies are afraid of losing awareness and market shares in the mass of competing trademarks around the world. For many companies, co-branding has proven to be an effective way of raising awareness amongst consumers and strengthening trademarks, while at the same time sharing costs with other companies and trademarks.

An example of co-branding is the collaboration between the music service Spotify and the social networking company Facebook, where a person’s Spotify account can be linked to their Facebook account and generate added value for both the individual user and both companies. Another example from recent years is the collaboration between fashion company H&M and various world-renowned designers and fashion houses, such as Karl Lagerfeld, Marni and Maison Martin Margiela. 

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