Research on the Impact of IP Co-Branding on Brand Value:

Mechanisms, Paths and Risk Avoidance

Xiangchuan Deng

Business School, SiChuan University, 610021,Chengdu, Sichuan, China

Keywords: IP Co-Branding, Brand Value, Impact Mechanism, Value Empowerment Paths, Risk Avoidance.

Abstract: In the context of intense market competition and evolving consumer demands, especially with Generation Z as

the dominant consumer group, IP co-branding has emerged as an innovative strategy to enhance brand value.

This study explores the impact mechanisms, value empowerment paths, and risk avoidance strategies of IP co-

branding, aiming to enrich brand theory and provide practical guidance for enterprises. Using literature analysis

and multi-disciplinary theories, the research constructs a theoretical model and analyzes classic cases. It reveals

that IP co-branding enhances brand value through three key paths: reconstructing cognitive value (e.g., Luckin

Coffee’s collaboration with The Rose's Story reshaping brand perception), deepening emotional value (e.g.,

Chow Tai Seng leveraging Jay Chou’s IP to foster emotional connections), and transforming economic value

(e.g., Starbucks × LINE FRIENDS driving premium sales). These mechanisms impact brand value components

such as perceived quality, associations, loyalty, and market share.However, risks like value dilution, unclear

authorization, and post-cooperation management deficiencies pose challenges. The study emphasizes

establishing a scientific evaluation system (assessing brand-IP compatibility) and a full-process risk control

mechanism (legal review, content monitoring, post-cooperation feedback) to mitigate risks. By integrating IP

cultural symbolism, emotional resonance, and premium pricing power, brands can achieve differentiated

development and sustainable growth. The findings highlight the strategic importance of IP co-branding in

creating competitive advantages while underscoring the need for systematic risk management.

1 INTRODUCTION

In today's fiercely competitive market, brand building

encounter both challenges and opportunities.

Consumption upgrading leads to more diverse and

personalized consumer demands. Consumers now

seek emotional value, cultural connotations, and

unique experiences in addition to basic product

functions. Generation Z, growing up in the digital

age, is becoming the main consumer group. Their

consumption traits, like curiosity for new things and

heavy reliance on social media, reshape the market

and influence brand strategies.

IP co-branding has emerged as an innovative

brand strategy. IP, encompassing trademarks, patents,

and copyrights, has cultural and commercial value

and a large audience (Zhang, 2023). Co- branding

with IP enables brands to cross traditional marketing

boundaries. It helps brands reach new consumers,

expand market share, and create value-added

experiences, enhancing popularity, reputation, and

loyalty.

Theoretically, exploring the impact of IP co-

branding on brand value enriches brand theory. It

offers a new perspective for brand value research,

deepening people’s understanding of brand value

formation. Practically, empirical research on classic

cases provides guidance for brand enterprises. It helps

them choose partners, formulate strategies, avoid

risks, and evaluate co-branding effects, maximizing

the potential of IP co-branding.

This paper uses the literature analysis method to

summarize relevant research and build a theoretical

model. By applying multi-disciplinary theories, it

delves into the impact mechanism of IP co-branding

on brand value. It also proposes strategies to avoid

risks like brand positioning conflicts. The research

framework includes expounding the background,

building the theory, analyzing the mechanism,

verifying with cases, suggesting risk-avoidance

strategies, and summarizing the findings with future

prospects.

604

Deng, X.

Research on the Impact of IP Co-Branding on Brand Value: Mechanisms, Paths and Risk Avoidance.

DOI: 10.5220/0013850500004719

Paper published under CC license (CC BY-NC-ND 4.0)

In Proceedings of the 2nd International Conference on E-commerce and Modern Logistics (ICEML 2025), pages 604-609

ISBN: 978-989-758-775-7

2 THE IMPACT MECHANISM OF

IP CO-BRANDING ON BRAND

VALUE

2.1 Analysis of the Constituent

Elements of Brand Value

Based on Keller's brand equity model, brand value is

a multi-dimensional concept, and its core constituent

elements include perceived quality, brand

associations, brand loyalty and market share.

Perceived quality is consumers' subjective perception

of the quality of brand products or services. It is not

based on the objective quality standards of products

but is comprehensively affected by various factors

such as consumers' usage experience, brand

reputation, and advertising promotion (Santos, Dias

& Pereira, 2024). For example, Apple's products have

established an extremely high perceived quality

image in consumers' minds with their simple and

easy-to-use design, stable and smooth system, and

high-quality hardware configuration. Even though its

products are relatively expensive, consumers still

think they are good value for money (Zou, Jiang,

Zhang, H.& He, H. 2025).

Brand associations refer to the connections of

various things, emotions, images, etc. related to the

brand in consumers' memories. These associations

can be functional. For example, when it comes to

BMW cars, consumers will think of excellent

handling performance. They can also be emotional.

For example, Coca Cola is often associated with

emotions such as happiness and sharing. They can

also be symbolic. For example, LV bags represent

luxury and status. Rich and positive brand

associations can help a brand establish a unique

image in consumers' minds and enhance the brand's

recognition and attractiveness.

Brand loyalty is reflected in consumers'

continuous purchase intention and behavior towards

a certain brand, which is an important manifestation

of brand value(Yang & Qiao, 2023). Highly loyal

consumers will not only repeatedly purchase products

or services of the same brand but also actively

recommend the brand to others, becoming the brand's

word-of-mouth communicators(Nie & Ma, 2025).

For example, Starbucks has a large number of loyal

customers. They are not only enthusiastic about

buying Starbucks coffee but also actively participate

in Starbucks' membership activities and show a high

degree of acceptance of new products and services

launched by Starbucks.

Market share reflects the brand's competitive

position and influence in the market and is a direct

quantitative indicator of brand value. A higher market

share means that the brand has more consumers and a

larger sales scale in the market, can obtain more

resources and advantages, and further consolidate the

brand's market position. Taking the smartphone

market as an example, Samsung and Apple, with their

strong brand influence and high-quality products,

have long occupied a high market share and become

the leaders in the industry.

As an emerging brand development strategy, IP

co-branding can affect the constituent elements of

brand value from multiple dimensions, realizing the

empowerment and enhancement of brand value. By

cooperating with IPs with high popularity and good

reputation, brands can quickly enhance their own

brand awareness and reputation by virtue of the image

and reputation of IPs, thus strengthening consumers'

perceived quality of the brand. IP co-branding can

also bring new brand associations to the brand, enrich

the brand's connotations and images, and attract more

different types of consumers. In terms of brand

loyalty, IP co-branding can effectively enhance

consumers' sense of identity and belonging to the

brand and improve brand loyalty by creating unique

consumption experiences and emotional resonances.

From the perspective of market share, successful IP

co-branding often attracts market attention and

consumers' purchase enthusiasm, thus promoting the

sales of brand products and expanding the brand's

market share.

2.2 The Triple Paths of Value

Empowerment

2.2.1 Reconstruction of Cognitive Value

In the highly competitive market today, brands

struggle to break free from traditional cognitive limits

and develop distinctively. IP co-branding offers a

viable solution for reconstructing brand cognitive

value. The 2024 co-branding between Luckin Coffee

and The Rose's Story serves as a prime example. The

Rose's Story, a widely-loved TV series, has a large

fan base and high-profile topics. Its themes of

romantic love and female growth create a unique

cultural symbol. Luckin Coffee capitalized on this by

launching coffee products and peripherals tied to the

show. During the co-branding, Luckin Coffee

employed an emotional marketing approach (Luckin

Coffee, 2025). The product packaging integrated

classic scenes and character images from the series,

sparking emotional resonance among consumers.

Research on the Impact of IP Co-Branding on Brand Value: Mechanisms, Paths and Risk Avoidance

605

Through social media and offline stores, Luckin

released promotional content and encouraged fans to

share their experiences, strengthening the emotional

bond. This collaboration was highly successful. First-

week sales surpassed 7.24 million cups, and brand

awareness rose by 35%. The IP's cultural symbol

status allowed Luckin to reshape consumers' brand

perception. Previously, consumers mainly saw

Luckin for its coffee functionality. Now, it's

associated with romance and emotion, making the

brand more appealing. This cognitive value

reconstruction not only boosts Luckin's

competitiveness but also paves the way for its long-

term growth.

2.2.2 Deepening of Emotional Value

In brand building, deepening emotional value is

crucial for strengthening the bond with consumers

and enhancing loyalty. IP co-branding offers

powerful support for this. Take Chow Tai Seng's

collaboration with Jay Chou's otaku culture IP, "Mr.

Zhou", as an example. Jay Chou, a music icon in

China, has a vast fan base. His music is filled with

emotional memories for many. The "Mr. Zhou" otaku

culture image appeals greatly to young consumers.

Chow Tai Seng launched a range of co-branded items

like limited-edition couple bead strings and solid-

gold record stickers. These products artfully blend

Jay Chou's music and otaku culture with jewelry

design. The bead strings, inspired by his classic

songs, hold the emotions within those tunes. The

record-shaped stickers, aside from being collectibles,

bring back fans' cherished memories of his music.

This design successfully transfers fans' love for Jay

Chou to the brand's products. Data shows this co-

branding was a success. The repurchase rate among

young consumers rose by 28%, showing the products'

appeal and consumers' approval. Emotional

resonance increased by 41%, indicating a strong

emotional connection. Thanks to Jay Chou's IP

influence, Chow Tai Seng has forged a closer

emotional link with young consumers. This has

boosted its popularity and reputation among this

group, enhancing market competitiveness and

supporting the brand's long-term growth.

2.2.3 Economic Value Transformation

In brand operation, the economic value

transformation is a key measure of a brand's success.

IP co-branding offers a unique and effective way for

brands to achieve this transformation. The partnership

between Starbucks and LINE FRIENDS serves as a

great example to analyze its logic and impacts. LINE

FRIENDS, a well-known South Korean cultural and

creative brand, has globally adored cartoon characters

like Brown Bear and Cony. Their cute and fun

designs have amassed a large fan base and strong

market influence. Starbucks, a world-famous coffee

chain, constantly seeks to innovate through brand

collaborations.They launched a wide range of

limited-edition products, including cups, keychains,

and various accessories, all featuring LINE

FRIENDS' charming cartoon images. The creative

designs made these products highly appealing. Sales

data showcases the remarkable success of this co-

branding. Limited-edition product sales exceeded

expectations by 170%, and the average daily

customer unit price in a single store increased by $45.

This indicates that consumers are willing to spend

more on co-branded items. The reason is that IP co-

branding gives products an IP premium. Consumers

are drawn to the cultural and emotional value these

products carry. LINE FRIENDS' elements make

Starbucks' products more attractive to young

consumers, who are eager to pay a premium for these

unique items. This directly turns the IP's premium

power into product value and market

competitiveness, effectively transforming the brand's

economic value.

3 THE CORE PATHS OF BRAND

VALUE ENHANCEMENT

3.1 Product Design Innovation----

Differentiated Design Strategy

The co-branded models of UNIQLO and Disney are

exemplary in product design innovation. UNIQLO, a

globally famous fast-fashion brand, is beloved for its

simple, comfortable designs and affordability.

Disney, a leading global entertainment brand, has

iconic IPs like Mickey Mouse and Snow White, with

a wide-reaching influence. Their co-branded clothing

integrates Disney's classic elements with UNIQLO's

style. The designs feature Disney characters' images,

colors, and patterns, combined with UNIQLO's

trendy tailoring and comfortable fabrics. This creates

unique products that stand out in the market. They

sold out quickly, driving a 12% revenue increase for

UNIQLO that season. Moreover, UNIQLO attracted

Disney's fans, expanded its consumer base, and

enhanced its popularity among young and family

consumers. The co-branding also added new cultural

value to UNIQLO, strengthening its position in the

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fast-fashion industry (Hasan, Zahid & Qayyum,

2024).

3.2 Integration of Marketing

Strategies----Omnichannel

Communication Matrix

The co-branding campaign between Nayuki and

Cardcaptor Sakura is a prime example of how an

omnichannel communication matrix can powerfully

drive an IP co-branding marketing strategy.

Cardcaptor Sakura, a classic anime IP, holds

cherished childhood memories for many and has a

large, loyal fan following. Nayuki, a new-age tea

brand, aims to attract young consumers through

innovation. During this co-branding, Nayuki built a

comprehensive omnichannel communication matrix.

Online, it used platforms like Weibo, WeChat, and

Douyin. Pre-campaign, it released previews and

posters, sparking fan interest. During the campaign,

live interactions and topic challenges on these

platforms, such as the popular Weibo topic #Nayuki

x Cardcaptor Sakura Co-branding#, increased fan

engagement. The topic's reading volume soared past

hundreds of millions. Offline, Nayuki transformed

stores into a Cardcaptor Sakura-themed wonderland.

The store's decoration, display, and employees' outfits

were decked out with anime elements. This provided

an immersive experience where consumers could

enjoy co-branded drinks and desserts and buy

exclusive peripheral products. Nayuki also partnered

with cross-border KOLs from food, anime, and

fashion sectors. These influencers used their reach to

spread the word about the co-branding. Thanks to this

matrix, the co-branding event achieved over 1 billion

exposures. It shows that an "online-offline-private

domain" communication loop can effectively pool

resources, boost brand awareness, and foster deep

brand-consumer connections in IP co – branding

(Xiao, Lee, Lee & Kim, 2025).

3.3 Optimization of Supply Chain

Management----Agile Response

Mechanism

This section takes the co-branded products of Apple

and Beats as an example to illustrate the significance

and practical effects of the agile response mechanism

in the optimization of supply chain management.

Beats is a renowned audio brand with a stylish design

and great sound quality, boasting a large user base.

Apple, a global tech giant, has strong capabilities in

supply chain management and other aspects. During

their collaboration on co-branded products, Apple

and Beats established an agile response mechanism

for efficient supply chain collaboration. They used

big data to forecast product demand, considering

market trends, consumer demand changes, and

historical sales data. Real-time monitoring of market

dynamics and consumer feedback allowed for timely

adjustments to production plans and inventory

strategies, ensuring supply met demand. In inventory

management, they set up an information-sharing

platform for real-time data sharing and visual

management. By optimizing inventory layout and

distribution, they shortened the delivery cycle and

increased inventory turnover. Data shows that the

inventory turnover of their co-branded products rose

by 40% and the out-of-stock rate was kept below 3%.

This mechanism reduces inventory costs, improves

consumer satisfaction, and enhances brand value. The

key is a flexible supply chain that can quickly adapt

to market changes, enabling rapid product iteration

and delivery to maintain a competitive edge (Wang &

Jiang, 2025).

4 RISKS AND CHALLENGES OF

IP CO-BRANDING

4.1 Risk of Value Dilution

The risk of value dilution in IP co-branding refers to

the potential decline in brand value caused by

inappropriate collaborative content or actions. This

risk often materializes when there is a mismatch

between the brand's image, values, and the IP's

characteristics, or when the content of the co-branded

products or promotions fails to meet the expectations

of consumers and fans. For example, if a brand's tone

and the IP's cultural connotations conflict, or if the

promotional content contains elements that disrespect

the IP or its fan base, it can trigger negative reactions.

The impact of value dilution is significant. It can

lead to a decrease in brand favorability and loyalty

among consumers. Once a brand's image is damaged

due to value dilution, the process of restoring

consumer trust is arduous and costly. It may take a

long time and substantial resources to repair the

brand's reputation, and during this period, the brand

may suffer from reduced market share and lower

sales.

4.2 Risk of Unclear Authorization

The risk of unclear authorization in IP co-branding

pertains to the potential legal and operational issues

Research on the Impact of IP Co-Branding on Brand Value: Mechanisms, Paths and Risk Avoidance

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stemming from ambiguous or insufficient IP

licensing agreements. This risk forms mainly due to a

lack of thorough due diligence during the pre-

cooperation stage. Brands may fail to meticulously

review the IP's authorization status, neglect to clarify

details such as the scope of authorization, the duration

of the license, and the associated fees, or overlook

potential loopholes in the agreement.

The consequences of unclear authorization can be

severe. Legal disputes over copyright infringement

may arise, which not only incur financial losses for

the brand in terms of potential compensation but also

severely damage the brand's reputation. Such legal

issues can also disrupt the normal operation of co-

branded product development and marketing, leading

to delays and additional costs. Moreover, it can

undermine the brand's credibility among consumers

and business partners, affecting future business

opportunities.

4.3 Risk of Post-Cooperation

Management Deficiency

The risk of post-cooperation management deficiency

in IP co-branding is the potential failure to optimize

brand strategies and maintain brand value after the

collaborative project is completed. This risk occurs

when brands lack an effective post-cooperation

evaluation and feedback mechanism. Without a

scientific system to assess the performance of co-

branded products in terms of sales, brand awareness,

and customer satisfaction, and without actively

seeking consumer feedback, brands are unable to

identify the strengths and weaknesses of the co-

branding efforts.

The impact of this risk is that brands miss the

opportunity to learn from the co-branding experience,

resulting in repeated mistakes in future collaborations.

Without proper optimization based on post-

cooperation analysis, brands may struggle to meet the

evolving needs of consumers, leading to a decline in

market competitiveness. Over time, this can gradually

erode the brand's position in the market and impede

its long-term growth and development.

5 CONCLUSIONS

Based on the brand value theory framework, this

study deeply analyzes the impact mechanism of IP

co-branding on brand value and conducts empirical

analysis through multiple classic cases. The research

results show that IP co-branding can significantly

enhance brand value through three paths: cognitive

reconstruction, emotional deepening, and economic

transformation. In terms of cognitive reconstruction,

by virtue of the cultural symbol attribute of IP, the

brand can break through traditional cognitive

boundaries and achieve differentiated development.

For example, the co-branding of Luckin and The

Rose's Story successfully reconstructed consumers'

perception of the brand, enhancing brand awareness

and reputation. In terms of emotional deepening, IP

co-branding can trigger consumers' emotional

resonance, strengthen the connection between the

brand and consumers, and improve brand loyalty.

Chow Tai Seng's co-branding with Jay Chou's otaku

culture IP successfully extended fans' emotions for

the idol to the brand products, realizing the transfer

and connection of emotions. In terms of economic

transformation, IP co-branding endows products with

unique IP premium ability, which is directly

transformed into product added value and market

competitiveness. The co-branding cooperation of

Starbucks × LINE FRIENDS, the sales of limited-

edition products exceeded expectations, achieving the

effective transformation of brand economic value.

However, IP co-branding also has the risk of value

dilution. For example, in the co-branding events of

MINISO and Chiikawa, as well as Ningji and

Detective Conan, due to inappropriate content

presentation and disrespect for the IP image, fans

have negative emotions towards the brand, reducing

brand favorability and loyalty. To effectively avoid

these risks, it is crucial to establish a scientific

cooperation evaluation system and a whole-process

risk control mechanism. In terms of cooperation

evaluation, an IP adaptability evaluation model

should be constructed from dimensions such as brand

tone matching, fan overlap, and cultural connotation

fit. The Delphi method is used to aggregate expert

wisdom, and consumer research data is introduced for

verification to ensure the adaptability of the IP and

the brand. In terms of the risk control mechanism, it

should cover legal compliance review before

cooperation, content review and public opinion

monitoring during cooperation, and effect evaluation

and consumer feedback closed-loop after

cooperation, comprehensively and systematically

managing and controlling risks to protect the interests

and image of the brand.

Looking ahead, research on IP co-branding will

move towards broader horizons under the dual

impetus of technological innovation and social

transformation. With the maturation of technologies

such as the metaverse, AI, and blockchain, new forms

of co-branding, including virtual IPs and digital

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collectibles, will continue to emerge. This will drive

the transformation of consumption scenarios from

offline to an integration of online and offline

experiences, offering users more innovative and

interactive encounters. Meanwhile, in-depth cross-

industry and cross-disciplinary collaborations will

become the norm, prompting researchers to further

explore how to maximize IP value through resource

integration and collaborative innovation. In addition,

research on IP co-branding will pay more attention to

social responsibility and sustainable development,

seeking ways to convey positive social values through

co-branding and achieve a balance between

commercial interests and social benefits. These

studies will not only provide theoretical guidance for

business practices but also promote the healthy

development of the IP co-branding industry, helping

it become an important force in promoting cultural

dissemination, economic growth, and social progress.

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