Marketing strategies have increasingly relied on cross-brand collaborations over the past decade, yet automakers have been somewhat late to the party. Recently, brands like Ford, Dodge, and Volvo have begun partnering with unrelated consumer brands to appeal to new audiences and retain existing customers, effectively transforming perceptions of first-time vehicle ownership among younger consumers.
As Parija Kavilanz, a veteran retail journalist and co-founder of the retail news platform Bagable.com, points out, “Gen Z is becoming an essential consumer demographic. All industries are looking for ways to engage and keep this group, which makes up 20 to 25 percent of the overall market and is on the rise.”
With this demographic in mind, both retailers and automakers are adjusting their strategies. A report from Nielsen IQ estimates that Gen Z’s purchasing power could soar to $12 trillion by 2030, outpacing baby boomers. Initial observations suggested that Gen Z was losing interest in owning personal vehicles, but recent trends show a different narrative as they mature. While technology continues to influence their vehicle choices, the traditional allure of car ownership appears to be making a comeback.
Although Gen Z’s attitudes toward driving and electric vehicles are evolving, they represent a promising market for automakers. To grab their attention, brands are launching innovative products, such as retro-themed automotive apparel from Abercrombie and high-end candles in partnership with Volvo.
New Collaborations: A Profitable Path for Automakers
While partnerships and collaborations are familiar concepts, they are especially attractive to Gen Z consumers. Kavilanz remarks, “Since 2016, I’ve noticed these unique partnerships gaining momentum, coinciding with Gen Z’s growing influence on marketing tactics fueled by their strong social media presence and love for novelty.”
Branching out into unexpected sectors, such as perfume lines from Mercedes-Benz, has proven financially rewarding. Through licensing agreements, collaborations, and exclusive merchandise partnerships, automakers can generate substantial annual revenue, although exact figures are seldom shared.
Luxury car manufacturers are venturing beyond conventional partnerships, exploring real estate opportunities like the Porsche Design Tower in Miami. This groundbreaking residential development features a one-of-a-kind “Dezervator” that enables residents to park their Porsches in their own apartments, creating an immersive brand experience. In a similar vein, Bentley is also developing a luxury residential project in Miami, complete with exclusive amenities, and has teamed up with Luxury Living Group to craft a line of upscale home furnishings.
Kavilanz underscores the necessity of attracting new customers through imaginative partnerships in a competitive landscape. “It’s vital to distinguish oneself in the marketplace to engage young consumers and sustain their interest,” she states.
The cat sat lazily in the sun, enjoying the warmth on its fur.
Basking in the warmth of the sun, the cat lounged lazily, enjoying the cozy feeling on its fur.
