In today’s rapidly evolving market, co-branding partnerships have emerged as a powerful strategy. They bridge complementary audiences, foster trust, elevate brand recognition, and drive sales. In fact, a Partnerize study reveals that 54% of businesses generate over 20% of their revenue through partnerships, while 74% prioritize them in their growth strategies. Additionally, 71% of consumers enjoy the fresh innovations co-branding delivers. For businesses, it’s a savvy way to reduce marketing costs and stand out, especially in competitive regions like the GCC.
But what sets the GCC apart is its distinct consumer behavior, rooted deeply in cultural heritage. Each country—Saudi Arabia, Oman, Qatar, the UAE—has its own unique market dynamics, and winning over these audiences requires nuanced, localized strategies. The brands that succeed are those that truly understand and embrace these cultural subtleties.
The Cultural Fabric of the GCC: One Size Does Not Fit All
A common misstep for international brands is treating the GCC as a monolithic region, when in fact, each country has its own identity. Take Ramadan, for instance, a sacred period across the Gulf. A campaign in Saudi Arabia is vastly different from one in Oman or Kuwait, from the messaging and language to the visuals, including clothing and even table settings. Yet, many brands overlook this vital differentiation.
Toyota’s Ramadan campaign in Saudi Arabia leaned into locally recognized humor set in the streets of Khobar. Meanwhile, New Balance’s ‘You Run the Night’ campaign in Kuwait tapped into cultural relevance by encouraging post-Iftar exercise, featuring local artist Abrar to connect with its audience.
At Skyne, we see immense potential in leveraging these cultural nuances through co-branding. And ask the vital question: why don’t more brands explore this path?
Toyota’s Saudi-tailored Ramadan campaign used recognisable humor set in the city of Khobar.
New Balance launched its ‘You Run the Night’ campaign to encourage movement after iftar using Kuwaiti artist Abrar for the campaign.
Co-Branding: The GCC’s Untapped Advantage
Consumers are loyal to the brands they love. Co-branded products can merge two beloved names into a fresh experience, offering the best of both worlds. This not only increases brand awareness but opens doors to new markets. But for a co-branding partnership to truly succeed, it must be mutually beneficial, where both brands’ audiences find value and relevance.
Global Inspiration: When Fashion Meets…Food?
Internationally, co-branding success stories abound, but the GCC market remains relatively unexplored in this regard—a surprising fact, considering how discerning GCC consumers are. A great global example is the unlikely pairing of Dolce & Gabbana and Pasta Di Martino. On the surface, fashion and food might seem like an odd duo, but their collaboration worked seamlessly, rooted in shared values of family, love, and Italian craftsmanship. With limited-edition packaging adorned with whimsical Italian landmarks, this co-branding created an exclusive, unforgettable experience. Just 5,000 tins were produced, with only 1,000 sold in the U.S.—each priced at $110, positioning the product as both a luxury item and a unique gift.
This exclusive approach is what made it iconic—a strategy that could find enormous success in the GCC, where consumers crave luxury and uniqueness.
Tailoring Co-Branding To The GCC Market: Skyne’s Vision
The GCC offers enormous potential for co-branding, especially when it comes to local products and traditions. Take camel milk, a regional superfood. While widely known for its health benefits, its unique taste (saltier due to higher iron content and less sweet due to lower fat) can be a barrier to adoption, especially among younger or international consumers.
Imagine a co-branding partnership between a trusted brand like Nescafé and a local camel milk producer. Nescafé’s reputation for high-quality, organic products could help introduce camel milk to a broader audience in an appealing, innovative way. Picture instant cappuccinos made with camel milk powder—a blend of local tradition and global familiarity. Such a product could easily become a staple, combining health benefits with modern convenience.
We’ve already seen how local trends can catch on. Consider the viral success of the ‘Dubai Chocolate,’ which combines the popular Arabic dessert Kunafa with chocolate—a fusion that elevated local flavors into a treat that resonates with both local and international consumers. The same potential lies in a camel milk product designed for the contemporary lifestyle.
Navigating the Complexities of Alcohol in the GCC
As a Dutch-rooted branding agency, we’re frequently asked by international alcohol brands how to break into the GCC market, where strict regulations on alcohol advertising prevail. Yet, there is an opportunity in the region’s exclusive venues—hotels, beach clubs, and airport lounges—that cater to high-end international clientele.
One of Skyne’s conceptual ideas was a co-branding partnership between Hennessy and Louis Vuitton (both under the same luxury group). Imagine a limited-edition, bespoke Hennessy bottle designed by Louis Vuitton, targeting the luxury-conscious expat market. This co-branding would not only leverage both brands’ heritage and creativity but also position them as icons of exclusivity.
With alcohol access restricted yet highly sought after in specific spaces, a product like this could thrive in the GCC’s niche luxury segments, especially when tied to the region’s love of collectible, memory-making items, often linked to travel.
It’s time!
The GCC market is ripe with opportunity for brands willing to explore co-branding’s potential. By tapping into the region’s cultural nuances and consumer desires, brands can craft exclusive products that resonate deeply. The market is ready for innovation—and co-branding is the key to unlocking it.
At Skyne, we see these untapped possibilities daily and believe that now is the time for brands to step up, explore, and thrive through smart, strategic partnerships. The future belongs to those who are bold enough to reimagine what’s possible.