From a brand perspective, what is the most significant risk associated with co-branding?

From a brand perspective, the most significant risk associated with co-branding is potential damage to brand equity resulting from a mismatch in brand values, quality perceptions, or target audiences with the partner brand. Co-branding involves two or more brands collaborating on a product or marketing campaign. If the partner brand has a significantly different reputation or appeals to a different consumer segment, the co-branded product or campaign could dilute or negatively impact the original brand's image and value. For example, if a luxury brand collaborates with a brand known for low-quality products, consumers may perceive the luxury brand as less exclusive or prestigious. Furthermore, any negative publicity or crisis involving the partner brand can quickly spread to the co-branded product and damage the reputation of the original brand. Careful consideration of brand alignment and potential risks is crucial before engaging in co-branding partnerships.