The letter “x” has been hot in the retail industry. It’s become a small but mighty letter that signifies a partnership between two brands, like the infamous Kardashian-born partnership, Fendi x Skims.
However, as Vogue argued earlier this month, “x” may soon fall out of fashion in retail.
“The sun is setting on the x,” Vogue said. “Once the universal symbol of brand partnerships, the ever-present x has been replaced by creative new ways to message a joint effort.”
This is an interesting point. Perhaps it’s not so much about the act of collaborating, but more about the actions to follow. From the lens of a consumer, what does someone really get out of a partnership after they’ve made a purchase? This key question is driving a new kind of business.
Going Beyond the Scope of “Business as Usual”
Indeed, retailers’ creativity seems to be at the heart of partnership strategy. This creativity aims to put consumers in the driver’s seat in new ways, offering them more targeted and more seamless experiences — ones they perhaps wouldn’t have without two names merging as one.
For example, take Nike’s recent partnership with Roblox, an iPhone game earning nearly $3 million daily. Both companies coming together allowed consumers to partake in a virtual metaverse. This metaverse mirrors Nike’s real-life headquarters where gamers can play playground classics like “the floor is lava” and dodgeball in a 3-D virtual world.
See also: Nike Creates Virtual World Within Roblox
It’s a unique idea to target people who enjoy both fitness apparel and online interactive sports games. Perhaps the ultimate dream is to have a consumer physically wearing Nike in real-life while walking around Nike’s virtual headquarters online.
On that note, Nike continues to play in the metaverse partnership space. Earlier this month, Nike bought shoe company and non-fungible token (NFT) fashion startup RTFKT. RTFKT makes sneakers — ones that exist virtually, that is — and NFTs. This is a hot business, to put it lightly, and also one not well understood due to its abstract and complicated nature.
Last February, as RTFKT reported on its Instagram, a teenage artist by the name of FEWOCiOUS sold 600 pairs in six minutes, banking over $3 million in the process.
Also consider Walmart’s augmented reality (AR) partnership with Yahoo, launched in alignment with this year’s holiday season. As part of this deal, consumers can play Instagram games and watch influencer videos that are optimized for AR.
Like Nike and Roblox, Walmart and Yahoo together offer a unique, interactive virtual experience.
See also: Walmart, Yahoo Beef up Social Commerce, AR Offerings for Holiday Shoppers
More traditional company pairings are also making an impact. Fashion retailer Chico’s recently partnered with Walmart GoLocal across markets in Chicago and Florida, offering two-hour delivery services to local consumers.
Walmart said that this partnership shows that WalmartGo is customizable to all kinds of businesses, regardless of what they’re looking to buy.
Read more: Chico’s Teams With Walmart GoLocal for Same Day Delivery
Another example is the arts and crafts retail giant Michaels partnering with Affirm, a platform that lets consumers buy something today and then pay for it later down the road.
Here, consumers can break up payments into monthly or bi-weekly installments for as low as 0% APR. In a statement, Affirm said that this decision allows more people to get creative and providers more makers with the ability to pay more easily for purchases – especially during the holiday season. Consumers are also able to pay up-front for purchases and earn rewards for doing so.
Related: Michaels Taps Affirm for BNPL
Greater Implications
Whether a partnership involves the act of helping consumers buy things faster or the arguably sexier immersion into the metaverse, retail partnerships that cause the most disruption offer consumers a variety of benefits.
Retailers must alleviate more basic consumer frustrations with things like slow shipping. In the meantime, they must also strive to better pique consumers’ curiosity to experiment with new offerings and avatars. As consumer needs and wants evolve, so must retailers’ offerings — both the real life ones and the metaverse versions.
Those retailers that win will perhaps do both successfully — alleviate a consumer problem or frustration while also maintaining a consumer-centric experience built on things like trust, brand loyalty and the desire to try something a little different.
They say “x” marks the spot. Perhaps it’s this juxtaposed sweet spot retailers should be paying attention to.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
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