Collaborative Couture: Decoding Relative Pricing Strategies and its Impact on Brand Equity

Abstract: Purpose: This paper aims to analyze the relative pricing of co-branding collaborations in the fashion industry to gain a deeper understanding of the effects on their respective brand equity. Design/method: This paper adopts a qualitative approach involving case studies on several co-branding collaborations in the fashion industry (H&M x Balmain, Adidas x Gucci, Fendi x Versace). In addition to qualitative case studies, this study collects primary data through two semi-structured interviews with professionals within the field of pricing and marketing. Findings: The findings of this paper suggest that different relative pricing strategies affect different dimensions of brand equity within luxury fashion collaborations. Depending on how you want to affect brand awareness, brand loyalty, brand associations, or perceived quality different strategies can be applied. The 3 strategies The Lobster Roll Strategy, The Steak & Ketchup Strategy, and The Surf & Turf Strategy are then presented. Original/value: Several studies have been made on how brand equity is affected by co-branding. However, the phenomenon of how relative pricing strategy in luxury fashion collaborations affects their brand equity respectively is a research gap this study contributes to. The implications of this research contribute to an understanding of how different relative price points within luxury collaborations may affect brand awareness, brand loyalty, brand associations, and perceived quality.