Industry jargon not your thing? Our glossary will enlighten you!
Merchandising refers to the practice of developing, producing and marketing products or items associated with a particular brand, artist, band, movie, television series or other form of entertainment. These products, often referred to as merchandise or merch, are used to promote the brand or artist, strengthen the bond with the audience and generate additional revenue streams.
Merchandising items can be varied and often include:
Clothing: T-shirts, hoodies, hats, and other apparel with logos or designs.
Accessories: Key rings, buttons, patches, stickers and the like.
Collectibles: Limited editions, signed items, figurines, posters, and art prints.
Home and office articles: Mugs, notebooks, calendars and decorative items.
Digital merchandise: Digital downloads, exclusive content or virtual goods.
Merchandising offers artists and brands a number of benefits:
Revenue stream: selling merchandise can be a significant source of income alongside the main business.
Brand building: Merchandise helps build and strengthen brand identity.
Fan loyalty: Provides fans with a way to show their enthusiasm and loyalty.
Marketing: Every merchandise product sold or worn acts as an advertising medium.
To merchandise successfully, artists and brands should consider the following strategies:
Understanding the target group: knowing what appeals to fans and which products are popular with the target group.
Quality: High-quality products that meet the expectations of the fans.
Design and creativity: Unique and appealing designs that reflect the brand or artist.
Pricing: Setting prices that are both affordable for the fans and profitable for the seller.
Distribution: Choosing the right distribution channels, both online and offline, to reach the target audience.
Storage and production costs: Pre-financing and storage of physical products.
Copyrights and licenses: Ensuring that all legal aspects are observed, especially for licensed products.
Market saturation: Differentiation in a market that is often oversaturated with merchandise products.
Increasing digitalization is opening up new opportunities in merchandising:
Online sales: e-commerce platforms enable worldwide distribution.
Social media: Marketing and sales promotion via social networks.
Print-on-demand: Reduces storage and lead time costs and enables a greater variety of products.
The decision should be based on an understanding of the target group, brand identity and practical feasibility. Feedback from fans and trend analyses can be helpful.