For over a decade, cross-brand partnerships have been a staple in marketing strategies. Interestingly, the automotive industry has been relatively slow to embrace this trend. However, in recent years, brands like Ford, Dodge, and Volvo have started collaborating with a variety of consumer brands to entice new customers and retain their existing clientele, fundamentally changing how younger generations perceive their first cars.
As reported by Parija Kavilanz, a veteran retail journalist and co-founder of Bagable.com, “Gen Z has become an essential consumer demographic. Various industries are devising strategies to connect with and keep this group, which currently makes up 20 to 25 percent of the consumer market and is on the rise.”
Understanding the significance of this demographic, both retailers and automakers are adjusting their approaches. According to a study by Nielsen IQ, Gen Z’s purchasing power is expected to hit $12 trillion by 2030, outpacing that of baby boomers. Initial concerns about Gen Z’s waning interest in car ownership have shifted, as signs show a resurgence in traditional vehicle ownership as they mature. While technological features remain paramount in their vehicle choices, the appeal of owning a car is making a comeback.
Even as Gen Z’s attitudes towards driving and electric vehicles evolve, this group offers a promising opportunity for car manufacturers. To capture their interest, brands are rolling out innovative products, ranging from vintage-style automotive apparel by Abercrombie to luxury candles in collaboration with Volvo.
Exploring Lifestyle Partnerships: A Profitable Path for Automakers
While the idea of partnerships is not new, they resonate particularly well with Gen Z. Kavilanz observes, “Since 2016, I’ve noticed these unconventional collaborations gaining momentum, coinciding with Gen Z’s rise and their significant impact on marketing tactics, largely driven by their social media engagement and quest for novel experiences.”
Extending a car brand into unexpected areas, like perfumes from Mercedes-Benz, has proven financially rewarding. Exclusive merchandise from licensing agreements and collaborations generates substantial income for automakers each year, although exact figures are often kept under wraps.
Luxury car manufacturers are pushing boundaries beyond traditional partnerships, even delving into real estate. The Porsche Design Tower in Miami exemplifies this trend, featuring a distinctive elevator called the “Dezervator” that allows residents to park their Porsches in their own apartments, creating an immersive brand experience. Similarly, Bentley is planning a high-end residential complex in Miami with comparable amenities and has teamed up with Luxury Living Group to launch a collection of upscale home furniture.
Kavilanz underscores the necessity of innovative collaborations to attract new consumers in a highly competitive landscape. “In a market saturated with options, it’s vital to stand out and engage younger buyers, keeping their interest piqued and their excitement alive,” she explains.
The cat sat lazily in the sun, enjoying the warmth on its fur.
Basking in the warmth of the sun, the cat lounged lazily, enjoying the cozy feeling on its fur.
