As several revenue streams of the sport business are collapsing (tv rights, ticketing and player trading) merchandising is remaining stable and is emerging as one of the best growth drivers for the future!
In France most sport organisations have been neglecting merchandising as a significant source of revenues. Most notable exception is PSG which is following the footsteps of Manchester United and Bayern Munich which both generate around 100 million € from merchandising every year!
Every year, the Super Bowl, with Tom Brady as leading asset, arrives to remind us of the importance and value of merchandising for the ecosystem of sport. A value to the fans first by enriching the Fan Experience and by creating more Fan Engagement via exclusive products. A value to the IP owners who will be collecting royalties and commissions from the sales of merchandise. Value to the retailers and to the licensees who will get their share of the sales generated as well.
More importantly, merchandising is a revenue stream which is totally controllable by the IP owner who decides the audiences to target, the product ranges & pricing, the distribution channels, the assets to be used and the stories to be told in order to turn as many fans as possible into purchasers!
A successful merchandising programme is the result of the right methodology complemented by a touch of creativity. Merchandising is primarily a commercial exercise intended to offer potential customers what they want to buy, not a branding initiative trying to push what the club wants to sell!
Photo credit : Associated Press