CORNUCOPIA OF IP COLLABORATION

IP Collaboration collage created using Canva

With each passing year, the number of IP collaborations with consumer brands is increasing. It appears that the entire market has transformed into a playground for brands to create unexpected cross-industry partnerships that resonate with their audience. Among these strategic collaborations, one thing that remains an old trick in the book of marketers is celebrity endorsements. Well, in the current scenario it’s more like celebrity collaboration. In the current era, celebrities themselves are considered individual brands. And when talking about celebrities, it is not limited to just actors; new categories of celebs have evolved over the years, from fictional to non-fictional characters and from performing artists to influencers. The options are quite extensive.

Let me briefly explain the concept to you, especially if you're new to it. Intellectual property (IP) collaboration is a strategic partnership where one brand teams up with another brand, an artist, or a franchise to leverage their existing intellectual property for shared marketing goals. You might be wondering why this strategy is beneficial. Based on my understanding, the following reasons explain this strategy's benefits and why the marketers are going gaga about it:

Impact of Globalization and Access to Information 

With the advent of the internet and specifically smartphones and social media platforms like Instagram and TikTok, it has been easier for people to find other people who are equally enthusiastic about a particular notion or person. This phenomenon has led to the emergence of numerous subcultures and fan communities. This trend has made it easier for brand managers and marketers to identify and target the client base that aligns best with their brands. Even better, they can expand their consumer base by developing products that resonate with the existing community of intellectual property holders.

Dealing with Market Competition in a Crowded Landscape

Every other day, new competition crops up in the marketplace, like thistles and weeds in an unattended garden. And it becomes excruciatingly painful for the existing businesses to maintain their market share. When starting out a new brand, businesses have the liberty to do a focused investigation and develop products that are right under the nose of the established enterprises. But, it gets quite risky for the established entity to come up with a new portfolio of products and services that their consumers and customers are not acquainted with; the clouds of “What-ifs” burden the boardroom, and the vote goes to the boat of stability.

So, instead of developing something new and exciting out of the box products(which the major entity prefers to do occasionally), they sail the boat to the shores of different IP holders to develop the point of differentiation, which helps the brands to create products or use the IP branding on their existing products (E.g. : Naruto, Barbie),with least risk and saves the brand from sinking down the market share rank and keeps up “the brand-who-gets-it” sails up. Additionally, it saves a significant amount of investment that would otherwise be spent on R&D and product launches if new products were developed frequently.

Consumer Behavior in Changing Environments

The saying, "Too much of anything is bad," which has been quoted by many authors, applies to the overconsumption of information. The human mind literally experiences a brain freeze. And when the logical brain freezes, the emotional side of the mind takes over. Thus, humans shift their attention to things they can emotionally connect with. Stories, both fictional and nonfictional, provide a strong emotional connection. Stories of singers, artists, athletes, the boy next door, the girl at the cafe, and stories woven through animation, crafted over paper, all contribute to a strong emotional connection.

These stories forge strong connections and cultivate a sense of community among individuals, rekindling an authentic experience that has been eroded by the rise of virtual reality.

Collaborating with the IP who provides such experience readily allows a brand to access a pre-existing and highly engaged audience that provides the brand with an increase in brand visibility and awareness.

Challenges and risks of IP collaboration

Like any coin, it has two sides, as does the path of IP collaboration. Having explored the benefits, let's now shift our focus to the drawbacks.

Legal issues and copyright infringement

IP collaborations, when done right, can help a brand create an edge of monopoly among its competitors, but if done wrong, they create classic “UNO Reverse” scenarios.

The legal framework around IP is quite complex due to its multiple types, territorial and jurisdictional issues, and the constant evolution of technologies. Without clear legal agreements, collaboration between two parties can lead to disputes over rights, profit sharing, and intellectual property ownership, which may result in expensive lawsuits and long-term reputational damage.

Misalignment of brand values and goals

A cross-industry collaboration or celebrity collaboration may look like a match made in heaven but comes crashing down as soon as it hits turbulence. Challenges can arise due to a misalignment of brand values and goals. For instance, consider the collaboration between Neiman Marcus and Target. Another issue may arise if the IP holder gets into a scandal or has a conflicting idea with the audience. Such events might result in strong reputational damage for both parties and sometimes take a heavier toll on IP holders, both emotionally and financially.

Dilution of brand identity

A friend to all is a friend to none and it leads to brand dilution. Sometimes brands make a huge mistake when they start chasing and pleasing people coming from different schools of philosophy. They try to fit in by collaborating with multiple parties at a time without a clear goal about what they actually stand for, ultimately failing to satisfy new audiences as well as the current consumer base. But there might be a few exceptions, like the 2023 Barbie Campaign, as they were clear about what they are looking for from their existing consumers (nostalgia factor) and the new audience (the reality and connection factor). 

In conclusion, IP collaboration has evolved from a passing trend into a vital marketing and branding strategy that is here to stay. This shift is driven by the numerous benefits it offers, including increased brand awareness and visibility, maintaining a competitive edge, differentiating products in the market, reaching new audiences, and establishing a brand identity that aligns with evolving consumer preferences. However, it remains to be seen how it adapts to evolving technological advancements and interacts with various industries such as toys, HORECA, recreational, fashion, and technology. Furthermore, it will be crucial for marketers to create authentic collaborations that resonate genuinely with audiences, avoiding mere viral stunts. Moreover, what new challenges will brew up and what new legalities will be developed to stop it from turning into a lethal potion? For this post I will take a pause now but will return soon with some studies to discuss.