The Impact of Cross-Industry Co-Branding on Brand Equity: A Case Study of Xicha and Fendi

As cross-industry co-branding becomes a prevalent strategy in contemporary marketing, understanding its effects on brand equity has become increasingly important. This paper explores the strategic alliance between Xicha, a leading Chinese new-style tea brand, and Fendi, a globally recognized luxury fashion house, to assess how such collaborations influence brand awareness, image, and loyalty. Adopting a mixed-method research design, the study analyzes both consumer perception data and brand performance indicators to evaluate the outcomes of the Xicha and Fendi partnership. The results demonstrate that the collaboration enhanced Xichas perceived premium value and elevated its status among aspirational consumers, while Fendi successfully engaged younger, digital-native audiences in the Chinese market. However, the alliance also raised concerns regarding authenticity and brand dilution, particularly for the luxury partner. The findings provide empirical support for the effectiveness of cross-industry co-branding in reshaping brand narratives and offer practical insights for brands seeking to navigate the opportunities and risks of such partnerships in culturally dynamic markets.