Meta description: Bakeries, bookshops, and tech companies are all selling merch. Here is what a recent Economist article says about why, and what it means for business buyers.
A recent Economist article, "Why your favourite bakery and coffee shop now sell tote bags," looks at how merchandise has spread far beyond its traditional homes in children's products, music, and sports. Here is a summary of what it says and what we take from it as a branded merchandise company.
Merch has gone mainstream
Bakeries, bookshops, grocers, hardware shops, and even tech companies now sell merchandise. Oxford Economics estimates that $338 billion a year is spent on it globally, though its definition is broad and includes licensed products, clothing, branded goods, and print-on-demand items.
The article's most vivid example is Trader Joe's. Its limited-edition Halloween mini totes cost $2.99, are about the size of an iPad, and prompted huge queues outside shops across America, with some stores limiting how many bags each customer could buy. Resale listings ran from $20 to a wishful $50,000.
Why a $1 tote is such a good marketing tool
Making these products is cheap and easy. A tote bag can cost less than $1 to produce in bulk and still be seen by thousands of people over its life. For well-known literary brands, the article notes, that adds up to billions of eyeballs. Merch also lets a company show personality, and many lean into humor. One supermarket's parody football jersey sold out in 55 seconds.
Why people want it
The article quotes experts who say the appeal has changed. A brand consultant argues that status used to be signaled with a price tag, a designer label, or an expensive watch, and now runs more on taste and belonging. A professor at New York University adds that young people who grew up online find clothing brands generic and prefer to show individuality through places and experiences that make them feel special.
Merch also ties people to a community. Almost half of people across the West do not belong to a faith group, sports club, or civic organization, so wearing something for a niche interest can be a way to find others who share it. The article's closing prediction is that merch will get more personal, with people already ordering custom cups, matches, and T-shirts as favors for weddings and parties.
What it means for business buyers
For companies buying branded merchandise, we see three takeaways:
- Give people something with a point of view. A logo alone is easy to ignore. Personality, humor, and design are what make people want to carry an item.
- Make it feel like membership. The items people choose to show off connect them to a group, whether that is a team, a client community, or a company they are proud to work for.
- Keep quality high. Nobody shows off something that feels like an afterthought, and an item that stays in use keeps your name in front of people.
Planning a gift, event, or team program and want it to feel like something people choose to carry? Contact Sauerbach Branded Solutions and we will help you find the right fit.