Merchandise As a Marketing Strategy
Merchandise isn’t just a revenue stream, it’s a strategy for promotion. Museums, Breweries, and Theme Parks don’t make a majority of their revenue from merchandise (even Disney’s merchandise only makes up 6% of it’s total revenue in 2022) but it is a powerful tool, and can be for small businesses as well.
Having your own branded merchandise creates additional opportunities to share, collect engaged fan information, and creates a catalyst for word of mouth marketing.
Sharing your merchandise on social media, as part of product shoots, and even as a giveaway provides additional content for your brand that increases online visibility.
If you’re mostly selling retail as a CPG business or on third party platforms as an author or creative you don’t have access to email or demographic information - but merchandise available only direct to consumer helps you capture that data.
Your merchandise is a walking billboard. When done effectively, people will either see your brand or ask “where’d you get that?” of the user - who is already a fan, meaning they’ll pass along positive feedback to friends and family! (Or bond with strangers over your product - I had a 10 minute conversation with someone in an airport around a branded backpack.)
Using Print On Demand
I recommend using Print on Demand to get started for two reasons - First: Cash flow. Print on demand is free from up front inventory costs for the merchandise you want to sell. You don’t have to invest in quantities of items that may or may not sell, or manage the cost of fulfillment. Generally, you’re going to make a lower margin on Print on Demand products than managing your own inventory, but what you bring in is all profit.
Second: you’re not starting a merchandise brand, you’re amplifying your current products (that make up all of your current revenue) that are being sold through other channels. It’s a marketing strategy first and a revenue source second. *The caveat here is that if you are shipping a good amount DTC and have solid systems in place and can invest in inventory, you can make a lot more money ordering merchandise wholesale and shipping it yourself - that’s a different conversation that I would love to have.
Printed Mint + Printful: I like Printed Mint and Printful for the variety of products and overall curation! They do a great job with variety and have a lot of options to fit your brand’s ethos. They do require integration into your site!
PrintedMint.com | Printful.com
Bonfire: Can’t support an integrated Print on Demand store? There’s still a solution for you! Bonfire has fewer product options, but you can create a storefront on the site, and your designs will show up on their marketplace.
What to Sell
Once you’ve chosen a Print on Demand site, your next step is to select items to sell, and create or choose art to put on those items. The key to these decisions is understanding your brand’s core customer (those served by your products). For example, if you’re core product is a children’s snack, totes or lunch bags make a lot of sense as a merch item, while fragile glassware may not.
Tips for curating items:
Consider where your brand’s core product shows up. Your brand’s occasion is a great way to connect to merchandise (if you’re a mystery author, a coffee mug makes a lot of sense, but you could skip the lunch box)
Think about what your target audience needs. Brewery gift shops are full of koozies (which is actually a Trademark, so if you don’t buy that brand you technically have to call them something else - fun fact). Beverages often need a vessel. Beach reads for beach readers need beach towels, and so on.
You want a few choices, but not too many. Some research suggests between 8 and 15 options is the sweet spot - and I tend to agree with that. You want enough variety to cover a few different categories, but not so many items that your customer is overwhelmed by the decision.
Start strong with a few pieces. You’re better off starting with a small amount of items (and designs) and expanding when you get feedback. (Perk of print on demand: adding and subtracting items is easy!)
Tips for choosing designs:
Your logo is cute, but leave it in the corner, for now. Your merchandise can and should be branded, but don’t put your logo front and center. Nike gets to do that because they’ve built their business around apparel. Your business is being built around a product (that is identifiable because of your logo) and until you build a strong brand community, your logo isn’t going to sell on a shirt the same way JEEP’s might.
Consider the sentiment- sharing quotes that resonate with your target consumer or your brand’s tagline are a great option for merchandise (this is where Nike is an applicable example - “Just Do It” on a shirt is great marketing!)
Patterns! Ok, let’s talk about patterns - a personal favorite. Patterns quickly connect the ~vibe~ of your brand, and can incorporate your product or logo in a way that is interesting and elevated. Patterns also open up different product types! (I may not be the right artist for your brand, but I will talk your ear off about patterns if you’re interested.)
Where to get art for your products?
Some graphic designers can include secondary marks and merchandise as part of brand packages, or can add them on. There’s also a world of artists out there who love to create placement pieces and patterns for brands!
While not every artist offers licensing, it can be an option to address investing in art - think of it as an artist renting you their art. Here’s a quick article on licensing (from the business side) on my art site.
Before we move on – here are a few companies doing merch as a marketing strategy well:
Chick-fila https://shop.chick-fil-a.com/collections/originals
A ton of breweries, including Creature Comforts: https://shopcreaturecomforts.myshopify.com/collections/tees-tanks
Ways to Share (The Marketing Strategy Piece)
Your merchandise is going to be seen by as many people as you show it to. Since it’s not your primary source of revenue, the goal is to work it into your existing strategy, and use it to build your brand, capturing consumer data for those who are buying through channels you don’t have control over, and converting buyers into brand advocates.
Incorporate your merchandise into your current visuals.
And by visuals I mean every time someone looks at your brand in a space you control, there should be merchandise somewhere. Trade show? Branded merch (and a way to tell people where they can buy if they ask about the merch specifically). Doing a photo shoot for your brand - where you can use branded merch in the background, do it! (Once I made a patterned tea towel based on a part of a wine brand logo and we used them in a few shots for a branded photo shot - we didn’t even sell them, but it reinforced the icon!)
Use it as an incentive.
Merchandise is a great way to round out a giveaway package (or if you’re in the alcohol industry and can’t give away product, it makes a good substitute)! Merchandise promotions could also be used as an incentive for getting people to sign up for your newsletter - this prevents discounting your product (which generally I recommend only doing very sparingly).
Launch LTOs
Merchandise is a great way to create a reason to connect with your audience - for example, if you’re struggling with what to share to your newsletter subscribers around a certain time frame, branded merch is it! Let’s say you’re a protein coffee brand (everything’s got protein these days) - maybe you make a shirt that says “fueled by XX Coffee” and share it in a newsletter a month before Mother’s Day (just consider the timing for fulfillment from your POD provider).
Want to talk about merchandise strategy (POD or not) for your brand?