A MANAGERIAL PERSPECTIVE OF CO-BRANDING STRATEGY IN INDONESIAN FASHION INDUSTRY, CASE: TEGEP BOOTS, ELHAUS, AND POT MEETS POP XOXO

• Main Author: Aryo Setio, Wisnu
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/72470
• Institution: Institut Teknologi Bandung

Currently, Indonesia's fashion industry subsector is showing a good potential. One of the potential is emerging collaboration between designer and fashion industry players. Co-branding is one of the most common strategies of collaboration in the fashion industry. In Indonesia, only a few first mover brands have implemented this strategy. The problem faced by fashion industry players is lack of similar perception and lack of standardized concept of cooperation, which resulting in a partial or momentary collaboration. Therefore, Indonesian fashion brands need to know the managerial perspective of co-branding strategy from brands that have implemented it before. This research used qualitative data research method by using semi-structured interview, observation and secondary data. The respondents in the interview were brand managers of Indonesian fashion brands that have done co-branding strategy before. The study is divided into three case selection based on the co-branding partnership typologies: brand with brand, brand with retailer, and brand with celebrity. Thus, the selected case studies are Tegep Boots, Elhaus, and Pot Meets Pop XOXO. The research was conducted to study the motivations behind co-branding, process of co-branding in the creative value chain, and challenges that were faced throughout the process with ways to overcome them. This research revealed that currently, Indonesian brands are pursuing co-branding strategy to gain access to new market, create a good brand association, and gain extra financial benefit using a momentum in the Fashion Industry such as Fashion Week or curated market. Moreover, the process of co-branding is focused heavily on the preparation stage and sales marketing stage, both with the highest level of co-branding integration. Lastly, the challenges that the brands have to overcome were internal related challenge such as communication issue and battle of ego, and also external related challenge such as design changes due to technology and material limitation. Ways for the brand managers to overcome them were to create deeper bond with partner, clarify contractual agreement, and compromising the design to be adjusted. Based on the research analysis, it is recommended for the brands that want to pursue cobranding strategy to set a clear objective since the beginning. Moreover, a good partner selection with a similar mindset is needed to overcome the challenges hand-in-hand. A clear contractual agreement is needed upfront, and product quantity should be kept in a limited amount to minimize sales risk and create delight for customer. After the strategic period ends, brands should also have a more detailed evaluation. In the next future, other brands can explore a more technical resource-sharing co-branding strategy and also partnering up with International brands.