Ideas shared

Co-branded products are here to stay. Last year, Luckin Coffee collaborated with makers of the Tom and Jerry cartoon to introduce themed items such as cups and cup sleeves for consumers. On the lifestyle-focused social media platform Xiaohongshu, users share how they transform such items into pen holders, for example.

Xiaohongshu features a tag for Tom and Jerry merchandise transformations, with users sharing their creative ideas. Some turn paper bags into tissue boxes, and cups into pen holders, while others make decorative art, fridge magnets, and night lights. Users also craft bookmarks, phone cases, themed calendars, and even a Christmas tree.

One user, "Bizhi Niangaogao", shared the step-by-step process of turning stickers into fridge magnets. Using materials such as cold laminating film, soft magnets, scissors and a carving knife, she spent an afternoon transforming nearly 20 sticker designs into these magnets.

Co-branding has extended beyond being a sales competition among major labels. Beverage companies are using various methods to showcase the cultural essence behind their products to achieve mutually beneficial outcomes.

In October, an exhibition featuring coffee from Yunnan was held at Sanyuanli market in Beijing to promote four key coffee destinations in the province — Menglian, Simao, Mangshi, and Ninger.

For the event, the entire market — inside and outside — was adorned with numerous captivating hand-drawn illustrations. Visitors sampled the latest coffee from Yunnan and exchanged stamps they collected at booths for exclusive refrigerator magnets.

The event was a joint venture between Grid Coffee, a chain focusing on single-origin coffee, and the animation director Hu Rui.

Hu, director and art designer for the second episode of the highly popular series Yao-Chinese Folktales, created a short animation film for the event titled Red Deer Dance, drawing inspiration from the culture and art of the Dai ethnic group in Yunnan.

Chen Ziyu, founder of Grid Coffee, said it plans to host promotional events on the origins of coffee beans, twice a year, and the second event will always feature such beans from Yunnan.

"We're a Chinese brand, and Yunnan is an important place for coffee in China, making our connection even stronger. Our annual event not only bolsters our ties, but also brings more business and income to local coffee farmers," Chen Ziyu said.

He added that in the past, information about Yunnan coffee, such as cultivation and production methods, proved too technical for consumers to grasp. This year, the coffee has been introduced in a more collaborative manner, with the brand working with Hu to make a short film featuring stories about Yunnan to showcase the province's attractions.

"Hu Rui's style is distinctly Chinese, with an Eastern vibe. We wanted to connect with young people by using labels and keywords. As Hu's animation works have become a big deal this year, we decided to team up with him," Chen Ziyu said.

"Sanyuanli market is the perfect place to hold this event. Quality ingredients are always linked to a well-known place, so a top-notch ingredient, especially one from a specific region, is a great choice to be shown at the market."

The event not only attracted Grid Coffee's regular customers and Hu's fans, but also actively involved shoppers at the market. There was also lively participation in the exhibition on Xiaohongshu.

"In addition to showcasing coffee from Yunnan, the event produced increased foot traffic and sales for the market vendors," Chen Ziyu said.

Chen Shenghua, the researcher, views co-branding as a mutually beneficial choice for both parties, as it essentially involves an exchange of audiences.

By using each other's brand influence and resources, it enables channel expansion, mutual access to audiences, and resource sharing. This, in turn, brings together diverse audience groups, triggering traffic and ultimately boosting brand awareness and improving brand image, Chen Shenghua added.

However, last year, some co-branded products did not deliver positive marketing outcomes. For example, luxury skincare brand Helena Rubinstein's collaboration with Manner Coffee failed to attract potential customers.

Chen Shenghua said this lack of success may be due to the failure to choose the right co-branding partner, an inability to seize traffic opportunities, or the absence of distinctive features in the co-branded product.

"Some brands have not invested in product or category innovation. Rather, they have engaged in co-branding simply for the sake of it, or pursued innovation without a clear purpose," the researcher added.

Chen Shenghua predicts that this year a wider variety of co-branded products will match consumer trends such as individualism, practicality, and a laid-back lifestyle.

He said the approach to co-marketing will become more diverse, with a shift toward digital and intelligent strategies.

"For example, advanced artificial intelligence will be used in consumer goods technology for analysis and to create smart marketing plans. This also involves using smart devices to enhance human-machine interaction," he added.

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