Music merchandise is now a multi billion-dollar business, influencing fashion brands and helping smaller artists to stay afloat.
At the top end of live-music concerts, when Travis Scott played 2 shows at London’s O2 arena in August, the shows were a runaway success (selling out in less than 2 hours) – with tickets for the 20,000 capacity venue selling for as much as £180 ($325 AUD). But when it came to profits, ticket sales were only part of the equation. Scott also sold £900,000 ($1.63m AUD) in merchandise at these concerts and surpassing the record set by BTS in 2019.
For those worried with where to set the pricing of the merchandise, with pricing on merch listed below, there was no shortage of those lining up to hand over their hard earned.
- £45 ($81 AUD) for a cap
- £125 ($226 AUD) for a hoodie
At a regional level, singer-songwriter Liz Lawrence has been producing and selling merchandise for 5 years, “When we look at a touring budget, we’ll say, this should work as long as we make XY in merch. The fees for playing haven’t increased as much as our costs, you need something to fill the gap”. Here in Australia, the City of Gold Coast recently recognised the importance of merch in sustaining artists who have been affected by Covid / venue / gig cancellations via a grant program. The Brand Makers recently worked with country music artist Rae Leigh to produce a range of merchandise as part of this grant.
In addition to being recognised as an important revenue stream for artists, merch has also become much more fashionable – with both the quality of the garments, the design aesthetics and in some cases, the collaborations with fashion brands helping to elevate the quality of the retail offering.
At Venue or Online/Direct Sales?
The answer to this question is always both… we recommend developing a strong direct sales program, as often venues will demand a % of sales on merchandise sold.
What products sell the best?
Apparel, Headwear, Drink Items (Coolers, Openers), Leisure Wear, Athletic Wear and Printed Memorabilia (commemorative booklet and the like) are all strong performers. We recommend having a hero within the range, something unique (for the Rolling Stones, this was the iconic lips) and relevant to your audience.
As for colours, black still sells 5 times more than any other colour – but we’re seeing a shift in fringe colours to natural tones (beige, camel, sea foam green, mid blue).
Where to begin when planning a merchandise range?
Start with the end in mind…
- Your goal for merchandise revenue generated ($)
- Number of fans known (people you will reach over the course of the tour period)
- Budget for what you are willing to spend on merchandise production
In 2021, we have seen the dollar spend ($/head) increase by 27% to $7.04 and merchandise sales as a percentage of attendees increase from 11% of those attending concerts to 21% in 2021. What does this mean? Ultimately… more fans are buying merchandise.
What happens if we know we need merchandise, but are afraid If funds are tight, think smart with merchandise planning. Develop the range and offer a pre-order ‘special offer’ to sure up sales of merchandise, show you what is popular with your audience and most importantly, secure the revenue to pay for the merchandise production before you commit to producing it.
Want to know more? Consult with a merchandise expert like the Brand Makers to develop a merchandise range for you.
