Building a business by building your brand can be a slow-burn. Or not.
We have all seen the trends over the past few decades how easy it has become to reach a million people instantly. On top of this ability of rapid mass awareness, we now have easy trials and repeats via E-Commerce and D2C platforms. Hence, the old marketing model of AIDA which used to be a linear curve has changed in today’s digital world. Amidst everything that can be done, one powerful marketing lever to accelerate your brand awareness and build revenue streams is PARTNERSHIPS.
Some of the partnership examples done globally almost write themselves. Go Pro and Red Bull. Doritos and Taco Bell, BMW and Louis Vuitton et al. I am a big fan of both Starbucks and Nespresso and loved it when both brands came together and created the Starbucks-Nespresso blend.
Partnerships is different from sponsorships, which essentially is a one-sided equity rent paid for by money from the brand. The best partnerships are those which enable both brands to create new revenue streams by reaching out to new audiences (with loyalty towards atleast one of the two brands) or such partnerships which enable brands to be seen in a new light, borrowing equity from each other. Think of limited editions as one form of partnership. Another way to think about partnerships is how social media creators collaborate with each other (collabs) aiming to derive win-win outcomes for both the creators.
Why don’t we see more partnerships in India? My submission is that D2C companies especially should look at symbiotic partnerships as a powerful way of growing their business. According to the Indus Valley report by Blume Ventures, it is the creamy layer of Indian population (about 120 million people) who form the basis of the Indian internet buying ecosystem – example: E-Commerce, or online flight bookings, OTT subscriptions etc. The three things which such businesses would need to consider : first, target audiences which are relevant to both; second, a joint proposition that delights the audiences and is not a force-fit and third, a commercial arrangement which benefits both brands and paves the way for a successful partnership. And my sense is that there are a lot of physical/offline businesses in India which can offer great partnership opportunities for new-age brands – think of Maanyawar or Tanishq or luxury hotel chains with can offer new audiences & new revenue streams.
On this note, a small story to end with. Recently, I was sitting and watching multiple advertisements on the cinema screen in the interval time of Mission Impossible, when I saw this commercial of Century Laminates and Manish Malhotra. What an interesting way for a brand to get into the consideration set of upmarket buyers with a relevant haute-couture designer. Would love to see what results come out of it. Please let me know if you know.
The author is one of India’s leading business leaders and a well-regarded marketer across diverse industries. All views expressed are personal.