In this article, I analyze the problems faced by Stabilo in 2024 on the one hand and the success of the Stabilo x Dolce & Gabbana co-branding on the other. This leads me to identify 3 areas for their future marketing strategy.
Highlighter brand Stabilo is in turmoil. Its sales are falling, as are those of its sister company, Faber-Castell. The good times of COVID are over, and Stabilo is looking for a new marketing strategy to relaunch itself. The success of the co-branding between Stabilo and Dolce & Gabbana has given the brand renewed hope. In this article, I analyze Stabilo’s situation, and the marketing options the brand could explore.
Contact IntoTheMinds market research agency
Stabilo: key figures and statistics
- Sales 2023/24: €213.6m (down from €217.9m the previous year).
- Overall reduction in sales: -2% between 2023 and 2024.
- Corporate orders for Stabilo products down 15% in volume in 2024
- Dolce & Gabbana collaboration: Limited edition highlighters sold at €30 each quickly sold out.
- Sister brand Faber-Castell saw its sales fall by 5% between 2023 and 2024. Its 2024 sales came to €618m.
Co-branding between Stabilo and Dolce & Gabbana
Co-branding refers to the association of 2 brands within the same marketing operation. Co-branding often takes the form of a product from brand A, temporarily adopting the marketing codes of brand B. This association occurs naturally between 2 brands operating in different sectors.
Dolce & Gabbana is adept at co-branding operations, and on this blog, I have already talked about pasta co-branded with D&G. It was this recipe that Stabilo followed in what was only intended to be a marketing experiment.
Stabilo has partnered with luxury brand Dolce & Gabbana to launch a limited edition of highlighters. Despite its high price (€30 for a box of 4 highlighters, i.e., around 3 times the normal price), it was quickly sold out. This initiative gave ideas to the German brand’s marketers and gave hope to its management.
Copyrights : Stabilo
A difficult post-Covid period for Stabilo
Hope was needed. After the good years of Covid, sales in 2024 fell by 2%. The decline is even more marked for Faber-Castell, Stabilo’s sister brand. The latter saw its sales fall by 5%.
You can either go to low-cost or high-end. There is no longer any intermediate marketing positioning.
Positioning is the key to success in 2025
The Stabilo example illustrates the difficulty of finding the ideal marketing positioning. I’ve been saying it for years, and it’s still true for 2025: either you go low-cost or high-end. There is no longer any in-between marketing positioning. Globalization and Chinese copies have made mid-range positioning untenable. Stabilo is a good example of this.
Stabilo is under attack from low-end products. Apart from the enchanting Covid interlude, we must face the facts. Stabilo’s position will erode because consumers are more careful than ever about their money. Inflation has come and gone, and the authorities’ reassuring figures in the fight against inflation are not felt as such by the population. Therefore, Stabilo had to embrace an innovative marketing strategy to enhance consumer perception and brand desirability. That’s where innovation comes in.
Innovation to move upmarket
Stabilo has understood that its salvation will come from innovation. Analysis of their strategy leads me to distinguish 3 axes.
Product differentiation
Stabilo has developed products to meet specific writing needs. We’re not discussing colors or line thickness here, but much more differentiating features. Areas of differentiation such as ‘playful creativity,’ ‘social & mental well-being’, and ‘edutainment’ have been created, within which products are developed.
One example is the ErgoPen for occupational therapists (€669 including tablet).
The eco-responsible trend
Another trend is the development of sustainable products and the reduction of plastic packaging. The ‘Green Boss’ range is made from 83% recycled plastic, which says so on the label. However, it’s not clear that this argument is decisive in buying. Rather, it is a marketing obligation for any self-respecting brand.
Digital Trends
The example of co-branding with Dolce & Gabbana (whose success is partly due to social networks) shows how important it is for a brand to follow digital trends. Stabilo is, therefore, investing in digital marketing to identify and exploit emerging trends. Of course, this will require a highly responsive development and production chain to exploit them in time.
Conclusions
The Stabilo example shows that no situation is set in stone and that threats to a company can come from anywhere. Marketing and innovation are the 2 main ingredients you need to maintain your success. Innovation allows you to renew customer interest and conquer new market segments. Marketing and all its components enable us to reach the heart of our customers and maintain their interest.
One of the lessons from the Stabilo case is that marketing initiatives that are out of the ordinary can have extraordinary consequences. The Stabilo x Dolce & Gabbana collaboration is nothing special. The product remains the same. But this meeting of 2 iconic brands has produced a salutary resurgence of interest. In a way, it’s an experiment with positive consequences.
