As market competition becomes increasingly fierce, mutual penetration and integration of various industries have become the norm, and the "attributes" of a company or a brand are becoming increasingly difficult to define. In this context, "cross-border" has become the most trendy word at the moment, demonstrating a cutting-edge attitude towards life and aesthetic approach, and also bringing new inspiration to brand building.

I. Theory

1. Reasons for the birth of cross-border marketing

Cross-border marketing is generally based on the commonalities and connections between consumers in different industries, different products, and different preferences. It integrates and penetrates some originally unrelated elements to win the favor of target consumers, so that cross-border brands can achieve a win-win situation. There are four main reasons for this marketing model:

1. Market competition is becoming increasingly fierce, and product efficacy and application scope are gradually extending. For example, Kangwang shampoo products are both daily chemical products and belong to the pharmaceutical industry.
2. Behind the market development, new consumer groups are emerging. Their consumption is no longer just a basic functional need, but a desire to reflect a lifestyle or their own taste.
3. As product homogeneity and market behavior imitation become increasingly obvious, companies are becoming more precise in segmenting consumer groups during the marketing process. For example, in addition to traditional divisions such as age and region, they are also adding new indicators such as lifestyle and educational level.
4. In the modern market environment, the competition between brands is a matter of capital determining strength. The era of a single enterprise or brand fighting alone has long ended. Cross-border joint marketing can reduce marketing costs, expand a larger communication group, and share more market resources.

2. The main purpose of cross-border marketing

From the perspective of marketing purposes, the target segmentation of cross-border marketing is nothing more than the following four points:

1. Leverage each other's brand elements to find new marketing breakthroughs and achieve brand rejuvenation;
2. Expand channel coverage and use the channel resources of both parties to cover more target groups;
3. To ignite market topics, cross-border marketing is generally operated as event marketing, with novel and interesting content and enough gimmicks for public discussion;
4. Breaking through scene traffic, taking the cross-border cooperation between Nongfu Spring and NetEase Cloud Music as an example, the copy on the bottle of Nongfu Spring is taken from the music reviews of NetEase Cloud Music. When users drink water, they will naturally think of NetEase Cloud Music through the bottle, and when using NetEase Cloud Music, they will also think of Nongfu Spring due to the joint promotion.

3. Common cross-border marketing strategies

American advertising master James Webb Young once said, "Creativity is a new combination of old elements." Cross-border marketing can be said to have taken it to the extreme. So far, the following five modes of play have been formed:

(1) Play with products

The most common is product cross-border, where both brands produce customized products through IP authorization. Specifically, there are four types of product crossovers:

First, Brand A independently launches products that are not part of Brand A’s main business, such as the Lao Gan Ma sweatshirt that appeared in the world’s top buyer store Opening Ceremony in Manhattan during the 2019 Spring/Summer New York Fashion Week;

The second is that Brand A and Brand B cross-border launch Brand A products. For example, during the Mid-Autumn Festival in 2018, the Palace Museum Food and Douyin jointly launched the "Stars Move and Reunion" palace mooncake auspicious box;

The third is that Brand A and Brand B cross-border launch Brand B products. For example, in 2018, McDonald's cooperated with G-SHOCK watches to launch a co-branded watch to celebrate the 50th anniversary of the Big Mac.

Fourth, Brand A jointly launches Brand C product with Brand B. For example, Luzhou Laojiao cooperated with the popular IP "Eternal Love" and registered and sold the "Taohuazui" wine that appeared in the film, which not only brought brand exposure but also brought revenue growth.

(2) Play content

Generally speaking, this approach involves integrating brands A and B in content marketing. For example, in 2018, KFC teamed up with the classic anime "Gintama" to create the "KFC x Yorozuya" and "Yorozuya Celebrity Meals" through cross-border collaboration. It is particularly worth mentioning that the customized animation plot that interprets KFC products based on the worldview of "Gintama" successfully captured the hearts of Chinese fans.

Another way is to incorporate the tones of both brands into the packaging design. For example, the collaboration between Pepsi and Alexander Wang, a popular Chinese-American designer in New York, directly started Pepsi's "blackening" journey.

(3) Play with concepts

Playing with concepts generally requires the same brand concept in order for cross-border marketing to achieve the effect of 1+1>2. For example, GoPro, which sells portable cameras, and Red Bull, which sells energy drinks, came together to plan a bold event - Stratos (space jump). The event invited extreme athlete Felix Baumgartner to jump from a space capsule 24 miles above the ground with a GoPro camera, and live-streamed it on Red Bull's Youtube channel.

Although seemingly unrelated, both brands share the same personalities of being adventurous, fearless, and full of extreme challenges. Because of these common values, coupled with the form of extreme sports, the combination of the two brands seems natural.

(4) Play experience

Experience cross-border is a comprehensive cross-border based on crowd characteristics, consumption scenarios, cultural habits, etc., and is generally expressed in the form of topic activities or business combinations. In terms of business cooperation, for example, the cooperation between Walmart and JD.com has jointly promoted the "smart upgrade" of stores and realized the last mile delivery; Walmart has cooperated with Tencent Mini Program to launch Walmart's "Scan Code to Buy", where customers do not need to queue up to check out, they can just pay online and pick up the goods and leave. For consumers, the shopping experience has been greatly optimized.

In terms of topic activities, in addition to bringing novel experiences to customers, its purpose is more about event marketing. For example, in 2017, Ele.me and NetEase News opened a pop-up store called “Sangcha” in Shanghai;

Also in 2017, Zhihu opened an internet celebrity theme store in Pizza Hut: What is it like to go to college in Wudaokou, the center of the universe? The Pizza Hut store was transformed into a three-dimensional Zhihu space.

(5) Play with resources

Resources in cross-border resources generally include channel resources, talent resources and technical resources. The main way to cross-channel is to incorporate the promotion of product B into the sales process of brand A products. For example, during the release of the theatrical version of "Pokemon", a cross-border collaboration was carried out with McDonald's, and McDonald's launched a Happy Land meal containing "Pokemon" toys.

In terms of cross-border talent resources, for example, HM once carried out cross-border cooperation with CHANEL, inviting CHANEL designers to design clothes for HM, which is a kind of cooperation in designer resources. Cross-border technical resources usually mean that one party has considerable technical advantages and can provide technical support for the cooperation between the two parties. For example, Jiang Xiaobai cooperated with Two Point Ten Animation Company to launch the animation "I am Jiang Xiaobai". Two Point Ten Company is the animation producer, and Jiang Xiaobai is the sponsor.

2. Case Studies

1. The latest case of cross-border marketing

Two-thirds of 2020 has passed, and so far, many cross-border marketing cases worth learning have emerged. Next, we will analyze and review relevant cases to explore ways of reuse.

(1) Didi Designated Driver x Ele.me Reputation: Seven landmarks across the country to boost the city’s morale

"Have you gained weight after the epidemic?" Regardless of whether you have gained weight or not, Didi's designated driver service and Ele.me's reputation have caused seven major cities in the country to swell overnight and join the army of obese people. Specifically, the cross-border marketing between Didi Chuxing and Ele.me can be regarded as an important conceptual attempt, aimed at cheering up workers and cities during the epidemic.

Conceptually, Didi Chauffeur and Ele.me both belong to the service industry in the city. Didi Chauffeur represents the "transportation" in the four necessities of life, and Ele.me represents the "food" in the four necessities of life. Their cooperation covers half of the service industry. Behind this is a group of the most ordinary workers. They are the "air of life" in the city, and the impact of the epidemic on the service industry is unprecedented. If the city is to regain its vitality and recover its vigor, it needs these workers to return to work, and the creative concept of "cheer up the city" came into being.

The seven major landmarks across the country and classic local delicacies have become important promotional elements, especially the city landmarks which are gradually getting fatter with everyone’s encouragement, which is both friendly and interesting. If the city wants to recover, in addition to the workers in the service industry, each of us consumers is also a key factor. Therefore, the organizers of the event also achieved an online and offline closed loop by distributing tens of millions of consumer coupons, thereby stimulating consumption.

In addition, in order to cheer on the silently dedicated workers, the love station "One Square Meter of Warmth" for outdoor workers can provide indoor rest areas and free hot drinks, and has also become a public welfare project that this event focuses on promoting.

(2) Ramen Says X999 Cold Relief launches “Cold Relief Instant Noodles”

Ramen Say is a Japanese ramen brand that is not well-known in China, while 999 Cold Relief is already well-known. The combination of the brand name and 999 Cold Relief has greatly increased the popularity of Ramen Say. The cross-border cooperation between these two products is mainly about playing with products. They jointly launched a "Heart-warming Chicken Soup" co-branded gift box. The appearance of the gift box is similar to 999 Cold Remedy, which aroused everyone's curiosity.

It is understood that the co-branded gift box includes two types of chicken soup ramen, Cordyceps Flower Chicken Soup and Herbal Pork Stomach Chicken, as well as limited peripherals such as anti-slip stickers for mobile phones, simple notebooks, tea bags, etc. These peripherals are also very interesting, and the packaging is full of the flavor of 999 Cold Spirit. Of course, it is no coincidence that Ramen Says and 999 Cold Relief have been able to successfully join hands, because these two products have the same brand tone, which is to fight against the cold and have the aspects of warming the stomach and healing.

(3) Tencent and Dunhuang Academy collaborate on animation dubbing

The cooperation between Tencent and the Dunhuang Academy can be said to be a model of content and technology cooperation, a true powerful combination. Tencent provides technical support and the Dunhuang Research Institute provides content. The collision between the two parties interprets the stories of murals spanning thousands of years in a professional and vivid way that is popular with the public.

For the general public, everyone has the opportunity to participate in this innovative interaction and dub the characters in the Dunhuang mural stories directly through WeChat, which not only allows them to understand the Dunhuang culture but also gives them a full sense of participation. For the Dunhuang Research Institute, this cooperation has played an important role in promoting Dunhuang culture; for Tencent, it has established a cultural and creative image that uses the "technology + culture" capabilities to help Dunhuang cultural IP break through barriers and be passed on in the digital age, rather than simply being a social or gaming stereotype.

(4) Wuling x snail rice noodle: Produce what the people need

During the epidemic, Wuling Motors responded to the national call, worked with suppliers to convert production lines to produce masks, and shouted out the domineering slogan "We will make what the country needs." Immediately afterwards, Wuling Motors actively participated in the street stall economy and launched the street stall car as soon as possible.

The most exciting operation is the recent cross-border operation, which directly sells snail noodles. The limited edition of 88 servings of Wuling snail noodles has a high-end appearance and comes with an exquisite tableware set, making it a luxury product among snail noodles. Coupled with the slogan "Taste life and understand elegance and extraordinaryness", it is simply too eye-catching. River snail noodles are a specialty food in Liuzhou, Guangxi, where Wuling Motors’ headquarters is also located. This cross-border move by Wuling Motors is intended to attract the attention of more young consumers.

2. Cross-border marketing of well-known brands

As young people gradually become the main body of the domestic consumer market, in order to attract consumers' attention, major brands have tried their best to engage in cross-border marketing. Among them, the Forbidden City, Heytea, and People's Daily can be said to be frequent cross-border visitors.

(1) The Palace Museum: Cross-border development to create the “hottest cultural and creative IP”

When it comes to the Forbidden City, what was your previous impression? A royal palace, a tourist attraction or a high-end museum? However, things are different now. The Forbidden City has gradually gotten rid of this serious and old-fashioned image and has instead become a super internet celebrity in the eyes of young people. The key to achieving this goal lies in the cross-border cultural and creative industries of the Forbidden City.

In 2018, Nongfu Spring teamed up with the Palace Museum Cultural Service Center to launch 9 limited edition "Nongfu Spring Palace Museum Bottles", using the Nongfu Spring bottle as a carrier to allow everyone to feel familiar and resonate with the modern interpretation of ancient paintings.

On World Museum Day in 2019, the Palace Museum and Oreo jointly launched the limited edition "Royal Palace Desserts·Six Flavors of China" biscuits, using beautiful ancient-style illustrations to pique the interest of brand fans and attract a large number of traditional Chinese style enthusiasts. On the other hand, the game is very shocking and profound. The shock lies in building the Forbidden City with 10,600 Oreos, which sparked heated discussions; the depth lies in the "One Cake Brings in the Flavors of the World" H5 interactive video, which deeply restores the elements of the Forbidden City and tells the birth story of "Oreo Enters the Palace" in an interesting way.

On May 31, 2019, the “Beyond Boundaries: Cartier-The Palace Museum Craftsmanship and Restoration Special Exhibition” opened in front of the Fifth Gate Exhibition Hall of the Palace Museum. Cartier is a pioneer in the French jewelry and watch industry, with exquisite craftsmanship and is highly praised by generations of royal families and celebrities; the Forbidden City, as the royal palace of the Ming and Qing dynasties, is the essence of ancient Chinese palace architecture and a symbol of culture. Thanks to the cooperation between the two parties, the exhibition hall is full of a long historical atmosphere, and you can also see the masterpieces created by the craftsmen with great effort. It not only spreads culture, but also promotes the brand invisibly.

Of course, in addition to the three cross-border events mentioned above, the Palace Museum also has numerous cross-border marketing projects, such as Palace Museum cosmetics, Palace Museum coffee, the "Watching Football by Imperial Order" H5 launched with NetEase News, and the "First Cultural Relics Drama Conference" jointly launched with Douyin, etc. All kinds of products, concepts, and experiences are readily available. In short, the Palace Museum has completely let go of its condescending attitude and has always been “with” brands that young people love to play with, which has increased its own influence among young people and promoted its collections.

(2) Heytea: A cross-border expert who is always making connections

Heytea is simply a "celebrity" in the cross-border circle. It has hooked up with everything from food to clothing to daily necessities, and has a lot of fun playing with the products.

HEYTEA X Sesame Street, one is an online celebrity tea brand, the other is a well-known animation IP. Taking advantage of the start of the school season, they started something across dimensions. On the product level, in addition to the innovative "Sesame Street Crispy Cone", the two parties also launched a variety of peripheral products such as co-branded T-shirts, dolls, co-branded canvas bags, and co-branded stickers. Each product incorporates the childlike elements of Sesame Street's classic characters to meet the spiritual needs of young people. At the experience level, in order to build awareness of the "Inspirational School Season", there are both offline activities such as "Inspirational Scratch Cards" and online #InspirationalNewSemester# topic discussions.

HEYTEA X Pechoin, with the theme of "Paying Tribute to Classics", launched a series of co-branded products, including co-branded HEYTEA gift boxes, HEYTEA membership cards, special menus for offline stores, tea cup sleeves, and even a short story based on the cooperation between HEYTEA and Pechoin. In addition, there is a "Chi Chi Bus" running around in Shanghai Changning Raffles Square, which is equipped with props such as a gramophone, a standing microphone and an old suitcase.

HEYTEA X 7-HAPPY, this collaboration on beverages takes "Chinese Valentine's Day" as creative inspiration, launches the "Chinese Valentine's Day Happiness" theme event, and also creates the co-branded product "Salty Lemon 7 Crispy Cone" and the #Chinese Valentine's Day Happiness# limited gift box.

As a "cross-border expert", there are countless cross-border cases, such as joining hands with Peacebird to launch the New Year's co-branded "HEY PEACE" sweatshirt, the "Cup Full of Red Diamonds Gift Box" with Mary Kay, and the Chinese Valentine's Day "Blush Gift Box" with Clinique. Some people say that Heytea is not satisfied with just being a milk tea brand, but is constantly developing into a trendy brand. Heytea has been continuously making its presence felt among young people through cross-border operations. It is no longer just a milk tea brand, but also represents a young and fashionable attitude towards life.

(3) Li Ning: Cross-border development leads the new trend of national fashion

Li Ning has long ceased to be a pure sports brand; "fashion" and "trend" have become its new labels. Li Ning's transformation is also a process of constantly trying cross-border collaborations, and mastering the products and content to perfection.

Li Ning X GAI, the hit show "The Rap of China" not only made rap popular, but also made the contestants' dressing styles become the object of imitation for fans. Li Ning collaborated with rapper GAI to launch the co-branded "GAI Shi Wushuang" high-top socks and shoes and the "Tian Gan Wu Zao" suit, attracting a large number of young fans for the brand.

Li Ning and Deppon Logistics, as both are sponsors of CBA, these two unrelated brands came together and launched cross-border marketing at the start of the 2019 CBA All-Star Weekend. Li Ning designed and customized a limited edition of cool all-star uniforms for Deppon Express, including jackets, T-shirts, pants, etc. This "alternative" national trend also fits the aesthetic of young people.

Li Ning X People's Daily, this cross-border collaboration can be regarded as the most dimensional wall-breaking cross-border marketing case in 2019. In fact, Li Ning and People's Daily have a deep connection, which can be traced back to the 1984 Los Angeles Olympics. People's Daily was the first to report the Olympic journey of gymnastics prince Li Ning to the people of the whole country. In addition to Li Ning's launch of far-reaching co-branded clothing, the People's Daily New Media also opened a pop-up store "Youjian Guochao Pavilion" for the cooperation between the two parties, attracting many people to check in.

In addition to numerous cross-border collaborations, Li Ning also shines at international fashion weeks, combining Chinese culture and fashion. The sports brand has entered a broader world and its trendy brand image has become more popular.

3. Cross-border marketing failure case

As "cross-border marketing" has gradually become a "marketing staple" for major brands, frequent and even rampant cross-border marketing can easily cause aesthetic fatigue among the audience. However, some brand decision makers made wrong decisions and ignored the essence and key points of cross-border business, which also led to many failure cases.

(1) HEYTEA X Durex: A textbook case of failure

Heytea is an expert in cross-border marketing, and Durex is also a veteran in the marketing field, but this time the cooperation between the two parties was a complete failure. In a marketing event on April 19, 2019, Durex interacted with brands such as Heytea, Ele.me, and Tao Piaopiao. Although Durex was as dirty as ever, the promotional content was suspected of "objectifying women" and was boycotted by many netizens, and the poster was also ridiculed for being vulgar and disgusting.

Why did the veteran driver suddenly flip over? There are three main reasons:

1. The content scale is out of control. This time the copy is too explicit, and the association is simply unbearable to the eye, causing discomfort to consumers;
2. The brand tone does not match. Heytea’s approach is generally fresh and aloof, while Durex is a veteran. When the two brands are combined, Heytea has been led astray.
3. Food, especially beverages, are not suitable to be associated with Durex as it easily leads to people’s imagination. Domestic audiences are relatively conservative and it is easy to fail if the car cannot be stopped.

(2) Samsung x Supreme: A joint event that caused ridicule

In December 2018, Samsung announced a collaboration with the trendy brand Supreme at the A8s launch conference, but the slap in the face came as fast as a tornado. Because the Supreme products worn by the head of the China region on stage were not on sale, netizens questioned whether the co-branded Supreme was a copycat brand. Fashion magazine @YOHO Trend also posted a blog saying "This is not American Supreme."

The final truth is that the product Samsung co-branded was a copycat of "Italian Supreme". Samsung, a world-renowned company, actually cooperated with a "copycat" brand, which made many netizens very happy. Coincidentally, some time ago, the cross-border marketing incident between Tencent QQ Speed ​​and the counterfeit Lao Gan Ma was also quite bizarre, which provided everyone with laughter. One has to sigh that co-branding is not random naming, and cross-border is not crossing the line.

4. How to do cross-border marketing well

After talking so much above, the ultimate goal is of course to learn how to operate cross-border marketing. How to do it specifically? Below I will analyze it from two levels: strategic and tactical.

(1) Strategic level

1) Clarify the purpose

Brand cross-border marketing has become a "trend". Under this trend, many brands blindly follow suit. The so-called "brand cross-border marketing" only stays at "joint promotion". Putting the logos of both parties together or changing the packaging is considered a cross-border marketing. The actual effect of such cross-border cooperation is naturally not ideal.

To truly do cross-border marketing well, we must first clarify the purpose of cross-border marketing and figure out the brand’s current demands for cross-border cooperation, whether it is to enhance brand value or improve brand image, or to gain users from different circles. Different demands determine the way of cross-border marketing and measure the cross-border effect. The cooperation between the two brands can even have short-term, medium-term and long-term strategic awareness, product collaboration, channel collaboration, and similar core concepts to support cross-border cooperation. Otherwise, it can only be regarded as a media resource exchange.

2) Accurate positioning

Before engaging in cross-border marketing, accurate positioning is required, including the positioning of your own brand, the positioning of cooperative brands, and the positioning of target groups. For example, we need to know the characteristics of the target consumer group, conduct a detailed analysis of our own and our partners' customers, and have a clear understanding of their consumption habits and brand application habits.

Specifically, three cross-border rules need to be followed:

1. Precise complementarity refers to the precise complementarity of customer groups, resources and technologies;
2. The brand concept and consumer demand are similar, that is, the brand tone is consistent to minimize the sense of "disharmony";
3. Attracting attention means locking in consumers' attention from packaging form to platform strategy.

3) Take the unexpected

The essence of cross-border marketing is to use the chemical reactions between different brands to create topics. In this way, the more "contrasting" the cross-border brands are, the more they can arouse consumers' imagination and discussion. On the other hand, market competition is becoming increasingly fierce, and consumers' curiosity is always focused on things they have never heard of. Only by breaking the rules can we give customers a refreshing feeling.

However, in order to seek the stimulation of contrast, some brands will cooperate with categories that are very different from themselves. If this is too much, it will cause damage to the brand. In other words, the contrast needs to be established on the basis of the commonalities between brands, and the brand essence and product characteristics must be compatible in some aspects, so that a "chemical reaction" can occur in cross-border marketing.

(2) Tactical level

1) Find the right partner

What kind of brand is the right partner? The core of cross-border marketing is "harmony in difference", similar brand scale, similar target population, but at the same time having certain contrast effects. Specifically, you can choose partners from the following five dimensions:

1. Brand value requires a certain degree of popularity and user base. Only in this way can cross-border marketing resonate and trigger discussion among a wider range of user groups. Therefore, there is also a saying that "cross-border marketing is basically a game for large companies."
2. The audiences are similar or complementary;
3. The product interests are complementary, and there needs to be some brand commonality between cross-border brands and categories, so that cross-border behavior can bring about synergy between brands;
4. Cross-border brands and categories must be topical in order to arouse the public's curiosity and continue to spread;
5. Brand reputation: choose brands with good reputation to avoid negative impact of cross-border influence on the brand.

2) Determination of internal connections

To complete a high-quality cross-border marketing, a key point is to determine the intrinsic connection points between the cooperating brands. The specific method is as follows:

1. Element connection, that is, some key elements between two brands have a mutually reinforcing effect. For example, Dicos launched the "Dicos Smoked Language" perfume in conjunction with the perfume products of the Smell Library to launch its new product "South American Smoked Chicken Burger";
2. Scene connection, that is, the use scenarios between cross-border brands can overlap, such as the cross-border pop-up hotel product "Sleeping Music Theme Hotel" launched by NetEase Cloud Music and Atour Hotel in 2016;
3. Dimensional connection means letting your brand "break through the dimensional wall". The more classic way is to implant props and plots in games, movies and TV series.

3) How users participate

Marketing guru Philip Kotler once proposed the concept of Marketing 3.0. He said that "consumers" are reduced to "whole people", "exchange" and "transaction" are sublimated into "interaction" and "resonance", and the humanistic spirit becomes the driving force of marketing.

There are two key issues:

1. Can cross-border marketing activities reach the target audience?
2. How do users participate in cross-border marketing activities?

From the product level, it mainly depends on whether consumers can really obtain, experience and share our cross-border products. From the information level, it mainly depends on whether the marketing activities can trigger discussions among the audience. It should be noted that marketing cannot overwhelm the product. Taking the previous case of Dicos as an example, whether it is the South American smoked chicken meal or the "South American Smoked Language Perfume", the message conveyed is the same, focusing on "taste".

4) Pitfalls to avoid

In cross-border cooperation, if you are not careful, it is easy to encounter hidden pitfalls, as follows:

1. It is easy for weak brands to be drowned out when they look for strong brands, because consumers are more likely to remember strong brands, so before crossing borders, you should think about your business goals and brand assets;
2. Cross-border is not crossing the line. You need to grasp this "line" well, otherwise it will be counterproductive, just like the case of Durex and Heytea above;
3. Be cautious in using hype. Cross-border marketing is most afraid of the hype model of "great thunder but little rain", because without continuous and systematic content construction in the later stage, it will eventually be short-lived and end in a hurry.
4. When two strong brands engage in cross-border cooperation, they may encounter problems such as funding and resources. If both parties just keep asking for things, the negotiations will often end in failure.

In short, cross-border marketing is not simply putting two brands together, but requires careful consideration from the strategic and tactical levels to ultimately achieve a win-win effect.

Author: Taibai Marketing Theory

Source: Taibai Marketing Theory