The Costs of Fashion-Focused Merch
In the music industry, merchandise has traditionally been a straightforward affair. Artists create a range of graphics inspired by an album or tour, which are then printed on blank styles such as T-shirts, sweatshirts, and ball caps. Occasionally, there are added details like embroideries and visible hang tags. The primary cost to the artist is developing these graphics, while the merchandise partner manages and facilitates printing on these blanks both up front and as needed throughout a tour. In exchange, the merchandise partners take a percentage of total sales to cover their printing costs, the cost of the blanks, and some profit.
Some merch companies offer additional services, such as inventory management and reporting, venue-to-venue shipping, and web store management, all for additional fees or a higher percentage of sales. This symbiotic partnership creates a low barrier to entry for both the artist and the merch company. Most merch is sold at shows, becoming an easy sale as a memento of the show and based on the artist's existing notoriety, minimizing the need for extensive marketing or other sales-supporting activities.
However, this model begins to falter when artists aspire to create something beyond basic styles. When artists view their merchandise as a cohesive collection that stands on its own, whether sold at a concert or a general retailer, the dynamics change significantly. As artists build their fan base, they cultivate a built-in customer base willing to engage more deeply, including purchasing additional products and wearing clothes that identify them as part of the artist's community without becoming "walking billboards." For more sophisticated fans, this might even include purchasing and wearing items that integrate with their daily outfits.
Creating such a collection necessitates styles that go beyond graphics on blanks. This requires a designer who understands how to create a garment from start to finish, connecting brand identity with current trends and customer fit. The designer must also be capable of assembling a collection of styles that can be interchanged to create full looks, such as tops and bottoms that coordinate. For example, offering fans the ability to buy a T-shirt and a zip-up hoodie that complement each other.
The design process involves market research, creative design and illustration, merchandise planning, and technical design. Technical design includes tech packs that provide highly detailed directions for manufacture. It also necessitates having the right manufacturing partners who can successful produce the designs in line with expected costs and retail pricing. This expertise and process incur costs beyond the graphic design costs artists are accustomed to. Additionally, building a collection of interconnected items meant to be sold together requires a commercial plan to ensure the right "mix" of products are available at each location. This typically involves creating pre-determined inventory plans for different size venues, so large venues have a broader offer of styles than smaller venues with limited space and participants. Developing and implementing this strategic plan throughout a tour incurs additional costs compared to the typical merch provider who sends whatever styles and sizes are available from venue to venue.
Moreover, a more fashion-driven collection has the potential to sell beyond concert venues and the artist's website. If the collection works independently, it can be sold at chosen retailers worldwide. These retailers can tap into "super engaged" customers willing to buy designs from their favorite artists, while also appealing to customers who may not know the artist but appreciate the designs. This expansion requires additional marketing activations, including advertising and co-sponsorships, as well as more layers of retail activations such as exclusive drop ships and collaborations.
Managing, analyzing, and reporting on this more complex business requires partners who understand how to ensure efforts are increasing margins and overall profits for everyone involved. While a fashion-focused merchandise business requires artists to invest more upfront, the potential outcomes include increased sales and happier, more deeply engaged fans.
Transitioning from traditional merchandise to a fashion-focused collection involves a significant investment in design, planning, and execution. However, the rewards of higher sales, broader market reach, and stronger fan engagement can make this investment worthwhile for artists looking to expand their brand and connect with their audience on a deeper level.
