Author: Lucia Scalinci
Date: 03-07-2026

In a sector characterized by dynamism and experimentation, co-branding strategies represent one of the most widely used tools for interpreting contemporary market dynamics. This research aims to understand how this type of collaboration influences the perceived value of a luxury brand when it partners with a mass-market brand.

Understanding these dynamics is important in order to determine how brands with fundamentally distinct identities can generate interest among consumers by implementing such innovative marketing strategies. Using a research approach based on advanced quantitative models — Adaptive Choice-Based Conjoint (ACBC) and the MaxDiff exercise (also known as Best-Worst Scaling) — with the application of Latent Class Analysis, this study shows that perceived quality, price accessibility, and brand coherence are the dominant factors driving consumer choice. Conversely, the consumer buzz generated and the creation of exclusive, time-limited editions have a secondary impact.

MARKET CONTEXT

Over the years, the concept of luxury in the fashion industry has undergone a profound transformation. From its very etymological origin, the term lux encompasses a dual meaning—light and refinement, but also excess (luxuria)—reflecting the tension between desirability and ostentation (Aiello & Donvito, 2006).

Over time, luxury has progressively integrated mass-market logics, giving rise to the so-called democratization of luxury, characterized by less ostentation and a greater focus on experience, particularly in-store, as a lever for redefining perceived value (Truchi, 2006).

The global luxury industry with an estimated value of $285 billion and an annual growth of 4% (Spocket, 2025), is driven by high-income consumers and Generation Z, who are more digitalized and sensitive to experience and storytelling. Consequently, fashion houses have complemented their artisanal heritage with contemporary strategies such as capsule collections, limited editions, virtual fashion, and collaborations with influencers and celebrities. In this scenario, brands such as Louis Vuitton, Dior, Gucci, Prada, Balenciaga, and Fendi stand out for their value and cultural relevance, thanks to their ability to integrate heritage and innovation.

Contemporary luxury goes beyond mere prestige, relying on the ability to build engaging narratives and maintain an authentic connection with younger generations, integrating languages from streetwear, sportswear, and fast fashion without losing identity.

The results show that the perceived legitimacy of collaborations is crucial: cultural, aesthetic, and value coherence between brands determines their authenticity, while misalignment generates rejection and the risk of brand dilution. The entry of younger and more globalized consumers, particularly Millennials and Gen Z, has pushed fashion houses to rethink their identity and communication, adopting more contemporary languages and direct interaction methods.

The choice of partner responds to strategic objectives such as target expansion, brand rejuvenation, increased cultural relevance, and entry into new markets. In line with Okonkwo, co-branding represents an effective tool for engaging new audiences without compromising brand integrity (Okonkwo, 2007). From this perspective, collaborations between luxury and mass market can be seen as experiential marketing operations capable of generating engagement and consumer buzz. They transform the product into access to a symbolic experience, where value lies both in the object and in the narrative that accompanies it.

METHODOLOGY

The research is based on an advanced conjoint analysis design supported by preliminary quantitative analyses. The functions and methodologies used for the analysis of the questionnaire data are:

• MaxDiff to measure the relative importance of a series of predefined attributes based on the research conducted during the empirical phase;
• ACBC (Adaptive Choice-Based Conjoint) with Hierarchical Bayes estimation to calculate individual utilities;
• Latent Class Analysis applied to the MaxDiff function to identify five different consumer segments through conditional formatting;
• Market simulations to estimate preference shares and identify buyer personas.

QUANTITATIVE ANALYSIS

Sample Description
The questionnaire was administered to 803 respondents using the CAWI (Computer Assisted Web Interviewing) method, targeting individuals interested in the fashion and luxury sector. Following the data cleaning phase, the final sample analyzed consists of 243 valid observations.

In demographic terms, the sample displays substantial generational coverage and heterogeneity: 42% belong to Generation Z, 38% to Boomers, and 20% to Millennials (Chart 1).

Chart 1: Age distribution

From an occupational standpoint, employees prevail (42%), followed by students (29%), highlighting balanced participation between individuals already in the workforce and those still in education. The sample is completed by freelancers (9%), job seekers (6%), and a residual category labeled “Other” (14%) (Chart 2).

Chart 2: Profession distribution

Regarding income, the distribution shows a prevalence of individuals in lower-middle income brackets, consistent with the observed age and occupational structure (Chart 3).

 Chart 3: Income distribution

Post-Stratification Weights

To correct potential sampling imbalances, post-stratification weights were applied to socio-demographic variables with misaligned distributions.

For gender, the sample shows an overrepresentation of females (69% female, 30% male, 1% no response). This distribution was rebalanced by applying corrective weights, assigning equal incidence to the main categories (Table 1).

Table 1: Post-stratification weights – Gender

Similarly, for residence, there is a strong concentration in Southern Italy (84%), compared to the North (11%), Center (5%), and abroad (1%). This distribution was also corrected through post-stratification weights to ensure greater territorial representativeness (Table 2).

Table 2: Post-stratification weights – Residence

CHOICE DRIVERS

Overall, MaxDiff and ACBC/HB analyses outline a profile of a conscious and selective consumer who evaluates collaborations based on brand credibility, value for money, and communication coherence, rather than on luxury ostentation and novelty effects.

Evidence from the MAXDIFF Analysis

The Maximum Differences Scaling (MaxDiff), also known as Best-Worst Scaling, clearly highlights the main drivers in evaluating collaborations between luxury and mass-market brands. The most relevant factors are:

1. Perceived quality relative to price, understood as consistency between product positioning and actual value delivered;
2. More accessible pricing compared to traditional luxury, a key element in purchase legitimacy;
3. Coherence between the two brands in terms of values and image.

Conversely, elements often emphasized in communication, such as media hype and limited editions, emerge as secondary factors in perceived value.

These results suggest that contemporary consumers are not seeking spectacularized luxury, but rather “justified luxury”: they are willing to accept a premium price compared to mass market, provided it is supported by tangible quality improvements and brand coherence.

Evidence from the ADAPTIVE CHOICE-BASED CONJOINT (ACBC) Analysis

The ACBC analysis, conducted using a Hierarchical Bayes model, allowed for a deeper understanding of individual utilities associated with attribute levels. Results show that cobranding strategies are oriented towards consumers that are attentive, pragmatic, value-oriented, and sensitive to brand coherence and credibility.

Price emerges as the most relevant attribute in decision-making, confirming the central role of the economic component even in accessible luxury. The sales channel is also important, with a preference for physical stores, confirming the importance of direct brand and product experience.

In partner selection, collaborations with sports brands are most appreciated, highlighting the symbolic strength of integrating luxury with authenticity. In terms of product type, clothing is preferred over footwear and accessories.

Finally, the lower impact of limited editions compared to permanent collections suggests that consumers value continuity and accessibility over temporary exclusivity, in line with a more democratic vision of luxury.

MARKET SEGMENTATION

Segmentation through Latent Class Analysis

To further explore differences in consumer behavior and preferences regarding collaborations between luxury brands and mass-market brands, the sample was segmented using Latent Class Analysis (LCA) applied to the results of the Hierarchical Bayes (HB) estimation of the MaxDiff exercise.

After several model iterations, the five-cluster solution proved to be the most balanced and interpretatively meaningful, based on goodness of fit indicators (LL, BIC, and Chi-square). This configuration makes it possible to identify distinct patterns in terms of choice drivers, price sensitivity, and value perception The analysis identifies five clusters, each characterized by a different hierarchy of attributes (Table 3).

Table 3: Conditional formatting by column

The distribution of the segments is as follows:

The Essential Consumers  (Cluster 4 – 28%), the largest group, are driven by perceived quality and product utility, favoring functional and reliable collaborations. The Price-Sensitive (Cluster 3 – 21%) attribute central importance to economic accessibility, positively evaluating collaborations that make luxury more attainable.

The Trend Seekers (Cluster 1 – 19%) instead show strong attention to hype, social visibility, and distinctive design, interpreting the product as a tool for symbolic expression. The Value Rationalists (Cluster 2 – 19%) adopt a pragmatic approach based on the value-for-money ratio, accepting purchases only when supported by credible perceived quality.

Finally, the Brand Identity Guardians (Cluster 5 – 13%) assign maximum importance to coherence between brands: co-branding is accepted only if it strengthens brand identity and symbolic capital, while price and visibility play a secondary role.

COMPETITIVE SIMULATIONS

Market simulations show that co-branding in the luxury sector is not a universally effective strategy, but rather a tool that must be carefully calibrated according to the target audience. Three key buyer personas emerge:

• New Luxury Buyers: predominantly Millennials with medium income (€30,000–€50,000), they show a positive attitude toward co-branding, interpreting it as a natural evolution of contemporary luxury. Value-oriented, they assess purchases as a balance between quality and experience, favoring credible and coherent collaborations, especially through physical retail channels. This profile aligns with the “Value Rationalists” and proves decisive in the success of collaborations such as Prada x Adidas, perceived as legitimate forms of accessible luxury.
• Authentic Luxury Guardians: cross-generational consumers who prioritize identity coherence and quality. Generally skeptical toward co-branding, they only recognize its validity when it strengthens brand equity, as in the case of collaborations with sports brands perceived as authentic. They prioritize substance over status symbols and align with the “Brand Identity Guardians.”
• Realistic Dreamers: they represent a bridge between aspiration and accessibility: they recognize the symbolic value of luxury but appreciate collaborations with fast fashion brands when they are coherent and well-designed. Although open to innovation, they maintain a rational approach oriented toward value for money, in line with the “Value Rationalists.”

For brands, the real competitive advantage lies in the ability to design differentiated collaborations that are consistent with brand identity and aligned with the expectations of each profile, avoiding shortcuts based solely on hype or media visibility.

MANAGERIAL IMPLICATIONS

The results of the MAXDIFF, ACBC, and Market Simulator analyses converge on a key insight: contemporary consumers do not simply look for a “branded” products, but rather seek justified luxury, namely:

• High and tangible quality, reflected in materials, design, and product construction
• Balanced pricing, accepted only if supported by a real qualitative upgrade
• Brand identity coherence among the companies involved
• Credible storytelling that explains the rationale behind the collaboration
• Physical experience and in-store visibility, capable of legitimizing product value

Co-branding represents a strategic lever only when it maintains a credible balance between accessibility and coherence: for luxury brands, it serves as a form of controlled expansion, while for mass-market brands it is an opportunity for legitimization that requires a genuine product upgrade.

In both cases, the research shows that perceived value does not come from the brand, but from quality, cultural compatibility, and the substance of the offering.

CASE STUDY: ZARA

Zara today: why value is not perceived
Zara today shows clear limitations when it offers higher-priced products or items potentially aligned with a luxury-inspired positioning. In particular, several issues emerge: incorrect online and in-store display that does not clearly distinguish premium products from standard ones; insufficient perceived value due to the absence of tangible quality signals (materials, storytelling, context); excessive aesthetics not supported by substance, which is interpreted as artificial rather than valuable; and underdeveloped communication, lacking structured storytelling and launch moments capable of legitimizing the product.

These factors explain why, despite a potential interest in a luxury–Zara collaboration, part of the sample adopts a cautious attitude or selects the “None” option in the simulated scenario.

How Zara should intervene: strategic indications from the research
Based on the research findings and managerial implications, mass-market brands such as Zara aiming to enter the luxury space should act as follows:

1. Dedicated zones for the collaboration line
   Creating distinct physical and digital spaces is essential to immediately signal a different value level. Visual separation legitimizes the price and strengthens premium perception.
2. Positional symmetry between fast fashion and luxury
   The collaboration must appear as a meeting between equals, not as a simple appropriation of luxury brand prestige. This enhances project credibility, especially among Brand Identity Guardians.
3. More minimal and coherent aesthetics
   The research shows that simplicity and visual cleanliness are more effective than decorative excess in communicating quality and long-term value.
4. Pricing justified by a real qualitative upgrade
   Prices may increase, but only if consumers clearly perceive better materials, more refined design, and a proposal that differs from Zara’s core offering.
5. Experiential initiatives with the maison
   Events, presentations, co-created storytelling, and launch moments increase collaboration legitimacy and respond to the experience-driven expectations of New Luxury Buyers.
6. Clear communication and dedicated visibility
   Explaining the “why” behind the collaboration is essential: without narrative, the product remains an expensive object; with narrative, it becomes an accessible symbol of luxury.

Insight
Zara is not far from competing in the accessible luxury space, however it must undergo a paradigm shift: raising prices or improving design is not enough new value must be constructed.

CONCLUSION

In conclusion, the research confirms that co-branding between luxury and mass-market brands is no longer an experimental exception, but a structural strategic lever within masstige marketing and downward extension strategies.

In an increasingly fragmented and competitive market, the success of contemporary luxury does not lie in elitist closure, but in the ability to democratize access without diluting value. When guided by strategy and coherence, co-branding becomes one of the most powerful tools for building luxury that is relevant, credible, and sustainable over the long term.