1. Introduction

In the context of rapid globalization and digitalization, brand marketing is facing an increasingly complex market environment. Changes in consumer behavior and intensifying competition among brands have prompted the need for innovation in marketing strategies. Cross-industry marketing and co-branding, as important strategies that have emerged in recent years, are gaining popularity due to their ability to break industry boundaries, integrate resources, and create unique consumer experiences. These strategies have gradually become effective tools for brands to enhance their market competitiveness. Despite existing research on the application and effectiveness of these two strategies, how to effectively adjust them in response to changes in consumer behavior and market trends still requires further exploration. The paper aims to analyze the role of cross-industry marketing and co-branding in the current market environment, exploring how these strategies can help brands tackle market challenges and enhance competitiveness through innovation. Specifically, the research focuses on how to optimize these marketing strategies using methods such as big data analysis and consumer behavior research to maximize brand value. To provide a comprehensive analysis, it adopts a mixed-method approach, combining literature reviews and case studies to explore the practical effects of cross-industry and co-branding marketing on brands, providing valuable insights to help brand managers adjust their strategies and gain a competitive edge in a rapidly evolving market.

2. Theories of Cross-Industry Marketing and Co-Branding

2.1. The Definition and Characteristics of Cross-Industry Marketing

Cross-industry marketing is a market strategy that integrates brands or elements from different fields to create unique products or experiences. This strategy breaks industry boundaries, leveraging the strengths of different brands or sectors to achieve resource sharing and market innovation [1,2]. Cross-industry marketing goes beyond simply combining products; it focuses on creating cross-domain brand value through innovative design and marketing strategies. For example, Nike’s collaboration with Apple led to the launch of the Nike+ sports watch, combining sports and technology to meet consumer demand for fitness devices while enhancing the brand's technological appeal and attracting a broad consumer base.

The innovation in cross-industry marketing lies in breaking traditional boundaries and combining elements from different fields to create a completely new consumer experience. This innovation extends beyond product design to include a comprehensive overhaul of marketing strategies and consumer experiences. Moreover, differentiation strategies help brands stand out in highly competitive markets by offering unique products and services through collaborations and co-branding, thus strengthening their market positioning. The synergy of brands enables them to leverage each other’s strengths, expand their audience, and enhance market recognition. For instance, the collaboration between Gucci and Tencent, combining digital platforms and offline events, attracted a large number of young consumers and increased the brand's influence in the Chinese market. Consumer-driven cross-industry marketing strategies involve in-depth research and accurate insights into consumer needs, choosing partners whose values align with those of the consumers, and creating products that resonate with them. In the era of the internet, cross-industry marketing deepens consumer engagement through interactive online and offline experiences, enhancing brand affinity.

2.2. The Co-Branding Strategies and Models

The marketing strategy and model of brand collaboration are key to successful joint marketing. Co-branded products capture consumer interest with innovative concepts, generate buzz, and drive purchasing desire through limited edition or time-limited sales strategies [3]. In addition, collaborations between different brands or intellectual properties (IPs) can appeal to a variety of consumer groups, boosting brand exposure [4]. The first step in co-branding marketing is choosing the right partner. Brands should ensure that their characteristics align with those of their collaborators to maintain brand image consistency. For example, Wang Xiaolu tends to partner with companies that share similar styles, such as Wusu Beer, helping create a more unified image in consumers’ minds. Moreover, collaborating with influential partners is crucial, as their influence can bring greater exposure and attention to the brand. For instance, Wang Xiaolu’s collaboration with the popular IP, Calabash Brothers, leveraged the broad influence of this national-level IP to boost brand recognition.

Co-branding marketing goes beyond product collaboration, and it focuses on creating unique market value together to attract consumers. Brands must leverage their distinct features to craft one-of-a-kind products or experiences. The partnership between Moutai and Luckin Coffee broke traditional boundaries between the liquor and coffee industries, introducing innovative products that not only eased market pressure but also showcased the brand's keen understanding of consumer needs and its proactive response [5].

Image integration is another key element in co-branding marketing. Companies must ensure that product design, packaging, and promotional activities reflect the shared values of both brands, creating a visually harmonious effect. This approach not only increases consumer recognition of the product but also enhances the overall brand image. Collaborations between the fashion and art industries often incorporate artistic elements into fashion products, adding artistic value and attracting consumers who seek unique, niche styles. At the same time, innovative content and communication strategies are crucial for the success of co-branding marketing. Brands attract consumer attention by creating valuable and engaging content, leveraging social media and other channels for widespread distribution to increase brand exposure. For example, Wang Xiaolu’s collaboration with Wusu Beer generated widespread discussion via the “overdramatic expression” topic, illustrating the importance of innovative content and communication strategies in co-branding marketing. Besides, co-branding marketing needs to precisely seize market timing, with companies launching co-branded products during holidays or peak consumer periods to maximize marketing effectiveness. Wang Xiaolu’s collaboration with Calabash Brothers during the New Year’s Festival is an example of leveraging the holiday consumption boom to achieve ideal market feedback.

3. Analysis of Brand Cooperation Cases

3.1. Successful Brand Co-branding Practices

The success of co-branded marketing often arises from a brand's deep understanding of market trends and consumer needs, coupled with its ability to leverage strong market influence through innovative collaborations and unique product integration. By engaging in cross-sector partnerships, brands not only enhance their market presence but create highly relevant, attention-grabbing campaigns through precise target audience positioning. The effectiveness of this strategy is typically reflected in the brand’s ability to transcend its original market boundaries, combine strengths with partners, and attract a diverse consumer base.

For example, Louis Vuitton’s partnership with Supreme successfully captured the attention of two distinct consumer groups by bridging the gap between high-end fashion and street culture. This collaboration was driven not only by careful market research into the complementarity of the two brand audiences but also by extensive social media engagement and rapid product sales. The partnership demonstrated the powerful potential of co-branded marketing to craft compelling narratives, amplify brand visibility, and strengthen influence. This phenomenon aligns with the social identity theory in consumer psychology, where consumers not only purchase products but express their social and cultural identities through brands. Particularly in the intersection of street culture and luxury brands, consumers’ purchasing decisions often serve as a powerful form of identity expression. Through their collaboration, Louis Vuitton and Supreme allowed consumers to showcase their identity while blending the two cultures.

Cross-industry collaborations between art and fashion, such as the collaboration between Gucci and artists, further demonstrate the unique power of co-branding marketing. By incorporating artistic elements, Gucci not only added deeper cultural value to its fashion products but also attracted consumers who pursue unique artistic styles, thereby strengthening the brand’s high-end positioning. Such cross-industry partnerships go beyond simple product integration, focusing on the joint creation of brand values and cultural significance. Consumer behavior here reflects an emotional-driven psychological response: when a brand integrates with elements like art and culture, it can trigger emotional resonance with consumers, thus enhancing their loyalty to the brand. Additionally, the collaboration between Holiland and Hello Kitty targeted the young female market. By launching limited-edition Hello Kitty-themed cakes and creative marketing strategies, Holiland successfully reinforced its youthful and feminine brand image. This attracted young consumers’ attention, and created significant buzz and viral effects through social media. Social media played a crucial role in this type of collaboration, serving as not only a channel for product dissemination but also a platform for consumers to express their identities and engage socially. By sharing and discussing co-branded products, consumers could strengthen their sense of brand identity and promote word-of-mouth communication.

3.2. Examination of Failed Co-Branding Marketing

Understanding failed cases is just as important, as they offer valuable lessons that can help brands avoid repeating the same mistakes. Cross-industry co-branding marketing is not without its risks, and failures are not uncommon [6]. Thus, brands must carefully evaluate potential collaborations to prevent foreseeable pitfalls, such as over-collaborating, which can dilute brand identity, lead to product quality issues, or cause an excessive reliance on brand labels at the cost of innovation.

For example, Disney’s collaboration with Irregular Choice on the Mulan shoe collection failed to achieve the expected market performance. The main reason for this failure was a lack of innovation in the design, which failed to accurately meet the target consumers’ needs. Despite the high recognition of both brands, the products failed to effectively integrate their brand identities, resulting in a lackluster offering. Market feedback revealed that consumers did not perceive the co-branded products as unique, and many expressed disappointment with the design. This highlights the need for co-branding marketing to make breakthroughs in product innovation, rather than relying solely on brand partnerships. It also exposed brand image confusion, which affected consumer recognition and brand reputation.

Similarly, in the food industry, co-branding failures are not rare. For example, Holiland faced challenges in its co-branding efforts, particularly due to rushed product launch timelines, which resulted in a lack of differentiation and an over-reliance on co-branding partnerships. Frequent co-branding collaborations may cause brands to neglect core product innovation, ultimately weakening their long-term growth potential. While co-branding can attract a lot of attention in the short term, over-reliance on this strategy may cause brands to overlook the critical elements of long-term innovation and quality control. Brands should strike a balance between the frequency of co-branding collaborations and product innovation, ensuring that each collaboration delivers tangible long-term benefits rather than just seeking temporary attention [7].

The success of co-branding marketing depends not only on the recognition and buzz generated by the collaborating brands but on the innovation, design, market demand fit, and consistency in brand positioning of the products themselves. When entering co-branding partnerships, brands must carefully analyze the needs of their target consumers and ensure that the brand identities of both partners align, in order to avoid confusion and maintain a consistent brand image. Co-branding collaborations should go beyond being a simple patchwork of labels; they should be an opportunity to create real value for consumers through innovation and distinctive experiences. Furthermore, brands should avoid using co-branding as their sole means of attracting consumers. While co-branding can generate short-term attention and excitement, it should not substitute long-term innovation and the development of core competitive advantages. Brands must strike a balance between the frequency of co-branding collaborations and ongoing product innovation to ensure that each partnership delivers lasting, positive impact. By analyzing failed cases, brands can refine their co-branding strategies, making them more targeted and effective, ultimately boosting their long-term competitiveness [8].

4. Consumer Behavior and Brand Co-branding Strategies

4.1. Factors Influencing Consumer Purchase Decisions

In cross-border marketing, co-branding strategies especially focus on influencing consumers’ purchasing decisions. Research shows that online reviews and user feedback significantly affect consumers’ choices, highlighting the importance of companies leveraging big data analysis to optimize products. The rise of social media has further strengthened the link between consumer interaction and purchasing decisions, requiring businesses to understand consumer needs and optimize brand image through social media [9]. The success of co-branding hinges on several key factors: product innovation, the appeal of brand partnerships, alignment with consumer needs, and the impact of social media amplification. For instance, the collaboration between Gucci and artists elevated the product’s distinctiveness by integrating artistic elements, catering to consumers’ desire for personalized, unique experiences. In contrast, the partnership between Supreme and Louis Vuitton transcended industry boundaries, igniting widespread conversation and highlighting the strategic advantages of combining contrasting brand identities. Consumer needs have a significant impact on purchasing decisions, and understanding consumers’ psychological needs is critical to product innovation and the success of marketing strategies. Brands should ensure that co-branded products align with the values and needs of their target consumers to increase purchasing intentions. This is especially true for younger consumers, who are very interested in collaborative products between popular IPs and fashion brands, as these products help them express individuality and follow trends [10]. Moreover, the amplification effect of social media plays a pivotal role in shaping purchasing decisions. Brands must strategically craft marketing content that fosters conversation and encourages sharing across social platforms, thereby strengthening brand presence and driving consumer engagement. In co-branding campaigns, it is crucial that the initiatives are closely aligned with consumer needs, sparking purchase intent through innovation and emotional resonance. This approach not only boosts immediate sales but also contributes to the sustained growth and long-term success of the brand.

4.2. Impact of Co-Branding Marketing on Consumer Behavior

Co-branding marketing is deeply intertwined with consumer behavior. This strategy not only captures consumer attention but also triggers their purchase intent, ultimately shaping their purchasing decisions. Co-branding marketing helps complement different consumer segments. For instance, the collaboration between the IP, Rakshasa Street, and a clothing brand successfully expanded both brands’ audience reach and enhanced their influence, enabling the brands to access a broader consumer base and increase market share [3]. In the consumer decision-making process, the attractiveness of brand partnerships plays a crucial role. When multiple renowned brands collaborate to launch a product, its scarcity and uniqueness often capture consumers’ attention, especially in the case of high-end or limited-edition products. Another key aspect of brand collaboration is its ability to cater to consumer needs. Product innovation and marketing strategies should be centered around consumer demands [10]. In co-branding, brands gain deeper insight into consumers' psychological needs, particularly the desire for personalized experiences, experiential consumption, and curiosity, ensuring that products align with consumers’ values, enhancing their purchase intent. For example, younger consumers are more likely to purchase collaborative products from popular culture or fashion brands, as these items allow them to express their individuality. Social media also plays a central role in influencing purchasing decisions. By creating compelling content, brands can capture consumer interest and spread the message widely through social media platforms. For instance, the collaboration between Holiland and its partners exemplifies how the brand reinforced its image through active consumer engagement. Positive word-of-mouth generated from these interactions significantly heightened consumer purchase intent, directly contributing to an increase in sales. Co-branding marketing influences consumer behavior by sparking curiosity through unique product designs, which drive purchase intent. The partnership’s uniqueness boosts the product’s appeal, making co-branded products more desirable. It also strengthens emotional ties by addressing consumers’ desire for personalization. In addition, social media amplifies brand visibility. When creating co-branding strategies, brands should consider these factors to foster sustainable growth.

5. Conclusion

This study provides an in-depth analysis of the impact of cross-border co-branding on brand development. It reveals that co-branding can generate distinctive product selling points and drive brand market expansion as well as consumer base growth by integrating the unique attributes of different brands. Successful co-branding, particularly in terms of innovation and differentiation, often results in substantial outcomes. However, key factors such as brand style consistency, content innovation, communication strategy effectiveness, and the timing of execution are crucial to the success of joint marketing efforts. The growing emphasis on personalized consumer demand, experiential consumption, and the influence of social media also play a significant role. While co-branding fosters brand growth, it is not without its risks, especially when it comes to partner selection, to avoid conflicting brand images or poor market reception. Although this study analyzes both success and failure cases, there are some limitations. In the digital age, the consumer decision-making process has become increasingly complex, a factor that is not fully addressed here. Besides, the long-term effects of co-branding on brand image maintenance and market sustainability are not deeply explored, as the focus is on short-term market reactions. Future research could explore how big data and artificial intelligence can aid brands in accurately identifying consumer needs and developing more effective co-branding strategies. Moreover, the intersection of emotional marketing with co-branding, the social responsibility of brands in joint marketing, and the long-term influence of cross-industry co-branding on brand loyalty and consumer psychology are all promising avenues for further exploration.