Hyperlocal co-branding will be key for retailers to drive growth

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The changing socio-economic condition primarily due to the coronavirus pandemic and the ensuing lockdown is changing the overall retail ecosystem. Sustainability has become the prime importance for manufacturers and retailers during the ongoing pandemic. Therefore, retailers are focusing on expanding their reach and building long term relationships with manufacturers and consumers. Importantly, the new trend in the retail ecosystem is creating substantial growth opportunities for hyperlocal retailing and co-branding gift cards.

The pandemic is creating a necessity for co-branding

The ongoing coronavirus pandemic is affecting the global economy at large. Extending lockdowns in most of the affected countries are restricting economic growth. The severity of the effect on the retail industry is quite strong, as limited footfall and restriction on movements of non-essential goods are affecting retailers’ profitability. Therefore, leading retailers are targeting local supermarkets and small businesses to establish long term partnerships. Moreover, retailers are also focusing on offering different promotional activities such as co-branding gift cards by collaborating with local manufacturers and small businesses.

Hyperlocal co-branding will drive the retail sector’s market growth

The primary objective of hyperlocal co-branding in the retail industry is to drive sales by utilizing the mixed brand value. The strategy of building a partnership of two co-related products, such as fitness center and health drink, offers convenience to the customers and influences them for recurring purchases or use their services. For instance, in January 2020, Apple launched Apple Watch Connected, an incentive-based program with fitness centers. Under this program, Orangetheory Fitness, a New York-based fitness center issues Apple and Nike gift cards for meeting the physical activity goals. Similarly, Starbucks and Ban.do offer co-branded gift cards to promote merchandizes and drinks.

To know more and gain deeper understanding of hyperlocal retailing and co-branding gift cards globally, click here.