What is Co-branding Marketing?
Co-branding marketing refers to a strategy where two or more brands collaborate to launch a combined product and enhance its appeal through their joint branding. From real estate and automobiles to clothing, shoes, lipstick, and beverages, anything labeled as a "co-branded" product tends to create a sensation. There are three main forms of co-branding marketing strategies:
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Brand x Celebrity Collaboration
With the rise of fan-driven economies, influential celebrities have become popular partners for cross-industry collaborations. These partnerships often feature the celebrity's signature, image, or even their involvement in product design. Adding a "limited edition" tag almost guarantees a hit. For example, last year, Uniqlo’s UT collection co-branded with artist KAWS was wildly popular and sold out quickly. -
Brand x Brand Collaboration
In this type of collaboration, the brands usually belong to different industries with no direct competition. They leverage complementary or shared characteristics to create a new product. For instance, Heytea’s collaboration with FENDI resulted in the "Joyful Yellow" series, and slogans like "Get a FENDI starter item for just 19 yuan" flooded social media. -
Brand x IP Collaboration
IP (Intellectual Property) collaborations have grown popular in recent years. This is an upgraded version of celebrity collaborations, where the IP is not a person but an artistic creation, design, city, or cartoon character. Examples include Peppa Pig, the Forbidden City, and the British Museum. These trending IPs hold immense commercial potential.
How Long Will the Moutai x Luckin Collaboration Stay Hot?
On September 4 last year, Luckin Coffee and Kweichow Moutai jointly launched the "Sauce-Flavored Latte" at a promotional price of 19 yuan per cup. It sold over 5.42 million cups on the first day, generating over 100 million yuan in sales and dominating social media. Moutai, a brand traditionally favored by older consumers, teamed up with Luckin, a coffee brand popular among young people, resulting in the "Sauce-Flavored Latte." Many commented that Luckin had "hitched a ride with a luxury brand."
In this collaboration, Moutai—the top stock in China’s A-share market—acted as a booster, but it also had multiple strategic interests. The usually exclusive Moutai, by partnering with a youth-oriented beverage brand, "embraced the younger generation," allowing many young people to taste their "first sip of Moutai." This flavor introduction could cultivate younger consumers' acceptance of Moutai’s signature sauce aroma, laying the groundwork for future sales.
Additionally, from the launch of Moutai ice cream in 2021 to the development of liquor-filled chocolates and now the sauce-flavored coffee, Moutai is clearly expanding from liquor to broader consumer goods. While the Moutai x Luckin collaboration is undoubtedly a short-term success, its long-term viability depends on the product’s competitiveness—can its taste gain lasting acceptance or even become addictive? Is it more energizing than a regular latte? Can this "baijiu + coffee" combo cure young people’s "morning Coffee, evening Alcohol (早C晚A)" habits?
