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Brand collabs X the trade offs

Ollie Ody
Brand collabs X the trade offs

At Tribe, we’re big fans of collaborations. Many of our clients use them to reach new customer segments, gain exposure, and create innovative products that wouldn’t be possible alone - and, sometimes, just because it’s fun. But collaborations aren’t always a guaranteed success. Some partnerships create cultural buzz and commercial wins, while others fall flat. So what determines whether a brand collaboration works?

Why collaborations work at any scale

Brand partnerships aren’t new, but the ways they are executed vary significantly. Some collaborations thrive purely on cultural buzz - allowing brands to access larger customer bases, tap into cultural associations, and, in their most cynical form, align themselves with cool or zeitgeist culture caches.

Take some recent examples from Tribe clients:

  • Sauce Shop x Foals - A hot sauce collab with the band Foals, born from a genuine fan connection. It’s unexpected but fun.

  • Surreal x Gymshark - A fitness brand collaborating with a protein-rich cereal. The health-focused synergy makes it a natural fit.

  • Mindful Chef x Citizens of Soil - Premium food brands offering complementary products. The high-end, health-conscious audience overlap makes this a no-brainer.

Mass-market fashion leads the way in collaborations, and for good reason. These partnerships help brands tap into new demographics, extend product categories, and create hype. Some standout examples include:

  • Crocs - Known for collaborations across pop culture, from Post Malone to luxury brands like Balenciaga.
  • Louis Vuitton x Takashi Murakami - A perfect blend of luxury and contemporary art.
  • IKEA x Virgil Abloh - Bringing streetwear aesthetics into home design.
  • Adidas x Fear of God - A high-fashion take on sportswear, with scarcity built into the release strategy.
  • BTS x LEGO - A mix of music and collectibles, appealing to fandom culture.

Even beyond product partnerships, brands tap into cultural figures to align with their audience. Take Cole Palmer modelling for Burberry – not a collaboration in the traditional sense, but still a strategic alignment that borrows credibility and influence to reinforce brand positioning.

When collaborations don’t land

Not all partnerships work, and some feel more like brand distractions than strategic plays. A recent example is Nike x Skims. On the surface, it might seem like a win-win - Nike gets cultural relevance, Skims gets a major sportswear name behind it. But looking deeper, Nike was once an innovator in sports apparel. Why are they turning to Skims for positivity, inclusivity, and innovative designs when they should be leading that message themselves?

Rather than regaining its position as a category-defining leader, Nike is leveraging cultural hype instead of focusing on its own innovation. Compare this to how Adidas approaches product categories and collaborations:

  • Product categories: Adidas Originals (retro/streetwear), Y-3 (premium athleisure), Terrex (outdoor/dadcore).
  • Collaborations: Adidas x Fear of God (high-fashion sportswear), Adidas x Pharrell Williams (music, culture, cool factor), Adidas x Wales Bonner (heritage fashion).

These feel intentional and category-led rather than a scramble to stay relevant. Nike’s struggle highlights a broader shift in the sportswear industry.

The risks of relying too heavily on collaborations

Contrary to our fanboying of Adidas’ product alignment and structured collab strategy, The Economist recently reported that Nike and Adidas’ dominance has shrunk from 63% in 2018 to 51% today, with challenger brands like On and Hoka gaining ground.

While collaborations play a role in shifting brand perception, the decline of these sportswear giants is due to a broader set of challenges.

One major factor is their increasing focus on direct-to-consumer (DTC) sales, pulling back from third-party retailers to prioritise brand-owned channels. While this can increase margins and customer data insights, it has also led to distribution gaps. Many retailers, once heavily stocked with Nike and Adidas, have instead turned to emerging brands that offer better wholesale support and exclusivity.

Innovation stagnation has also played a role. Challenger brands like On and Hoka have disrupted the market with fresh technology and category-specific product development, whereas Nike and Adidas have relied heavily on legacy models and high-volume bestsellers. Adidas, for example, saw a surge in demand for fashion-led trainers like the Samba, but even then it does little to reinforce their technical credibility in performance footwear.

Additionally, shifts in consumer preferences have favoured up-and-coming brands that are perceived as more authentic, community-driven, and innovative. While Nike and Adidas remain global powerhouses, their ability to connect with younger, niche-driven consumers is under pressure, especially with their competitors excelling in social media, influencer marketing, and grassroots sports activations.

This mix of DTC overreach, a lack of genuine product innovation, and changing consumer behaviour means that Nike and Adidas can no longer rely solely on their historical dominance to maintain market share. See our post on niche expertise in DTC for why focus wins over broad appeal.

Final thoughts

Brand collaborations can be a powerful tool for growth, but only when they align with a brand’s long-term strategy. The best partnerships are more than just a moment of hype - they offer a clear value exchange, expand customer reach, and reinforce brand positioning. But when brands rely too heavily on partnerships instead of strengthening their own identity, they risk losing relevance in the long run.