In the world of marketing, cross-brand partnerships and collaborations have been a popular strategy for over a decade. Surprisingly, automakers have been slower to adopt this trend. However, recent years have seen companies like Ford, Dodge, and Volvo teaming up with unrelated consumer brands to attract new customers and retain existing ones, reshaping how young people view their first vehicles.
According to Parija Kavilanz, a seasoned retail reporter and co-founder of the retail news site Bagable.com, “Gen Z has emerged as a crucial consumer base. Industries across the board are strategizing ways to appeal to and retain this demographic, which represents 20 to 25 percent of the overall consumer market and is steadily growing.”
Recognizing the potential of this demographic, retailers and automakers are shifting their focus. A study by Nielsen IQ projects that Gen Z’s purchasing power will reach $12 trillion by 2030, surpassing that of baby boomers. Despite initial reports suggesting a decline in interest among Gen Z for personal vehicles, recent trends indicate a shift as they age. While technology remains a key factor in their vehicle preferences, the appeal of traditional car ownership is resurging.
Although Gen Z’s driving habits and attitudes towards electric vehicles are evolving, they present a lucrative market for automakers. To capture their attention, brands are introducing unconventional products, such as retro-style automotive apparel from Abercrombie or luxury candles in collaboration with Volvo.
Lifestyle partnerships: A lucrative avenue for automakers
While collaborations and partnerships are not new concepts, they hold particular appeal for Gen Z. Kavilanz notes, “I’ve observed these unconventional partnerships gaining traction since 2016, coinciding with Gen Z’s maturation and influence on marketing strategies due to their heavy social media presence and desire for novelty.”
Expanding a car brand into unexpected territories, like perfumes by Mercedes-Benz, has proven to be a lucrative venture. Licensing deals, collaborations, and partnerships with other companies for exclusive merchandise generate substantial revenue for automakers annually, although specific figures are rarely disclosed.
Luxury automakers are going beyond traditional collaborations, venturing into real estate with projects like the Porsche Design Tower in Miami. This innovative residential complex features a unique “Dezervator” elevator that allows residents to park their Porsches inside their apartments, offering a seamless brand experience. Similarly, Bentley is developing a luxury apartment complex in Miami with similar amenities and has partnered with Luxury Living Group to create a line of premium home furniture.
Kavilanz emphasizes the importance of attracting new customers through creative collaborations in a competitive market. “Standing out amidst the clutter is crucial in engaging young consumers and maintaining their interest and excitement,” she explains.
sentence: The cat sat lazily in the sun, enjoying the warmth on its fur.
Rewritten sentence: Basking in the warmth of the sun, the cat lounged lazily, enjoying the cozy feeling on its fur.
