Why Do People Buy Merch?
The modern merchandise industry, driven by products created by cultural institutions, events, artists, and festivals, has a significant impact on consumer culture. Customers are attracted to the universe of a product while simultaneously being exposed to external factors that encourage them to purchase or possess the item. Let's say Pohoda t-shirts, as a garment, carry festival values such as sustainability and inclusivity that are part of the product universe. People also wear the shirts to show that they went to the festival or know something about music. That helps them fit in with their friends while also making them stand out. However, these products create an environmental burden that needs to be taken into account. What I've found out is that the values of bands, festivals, or institutions are frequently overlooked when it comes to merchandise production. One of the most common examples might be bands that focus on social issues and equality in their lyrics but create merchandise t-shirts that are made of regular cotton and produced in a linear system without any certification guaranteeing that the producer meets environmental or social sustainability standards. Even institutions like the University of Art in London, which emphasises and teaches fashion and sustainability, produce poorly made hoodies without paying enough attention to quality and environmental responsibility. Quality and environmental responsibility are not given enough attention or thought. I would even go so far as to say that customers are not as critical of it as they are of clothes made by fashion companies.
A common cause is a deficiency in understanding textile production or supply chain alternatives by producers. As circular and responsible supply chain management is a complex field or topic in and of itself, I moderated the following chapter in order to fill the gap and provide adequate knowledge. Following part delves into the web of environmental and economic consequences associated with the merchandise and fashion industry, laying the groundwork for the next chapter and offering solutions and alternative approaches to such a topic as the production of goods.
The Essence of Merchandise: Beyond the Material
Attending an event and purchasing a T-shirt or tote bag allows you to bring a tangible reminder of that experience back with you. Regardless of the distance travelled and time passed, merchandise serves as a reminder that evokes the distinct emotions associated with the event that elevate ordinary objects to a state of extraordinaryness. People often acquire these items not just for their practical use but also as a way to remember the emotions and shared moments from the event, like a physical memento or totem with a symbolic value. However, as these mementos lose their emotional significance over time, they may be discarded and become an environmental burden, eventually being forgotten. Therefore, the sustainability of merchandise depends not only on its initial emotional resonance but also on its ability to retain its symbolic significance and cultural capital. Researchers have repeatedly identified a connection between festival experiences and social capital (Barrière and Finkel, 2020), emphasising the importance of community celebrations as a way to showcase shared values and improve self-identity. Fans's expression of their fandom through festival-related merchandise may also help to strengthen their social capital within their communities.
The economic value of fan merchandise is not only derived from the physical product but also from the intangible aspects of community, shared identity, and cultural significance that the merchandise embodies. As such, the economic value of fan merchandise is highly dependent on the social and cultural capital that it holds for fans.
According to Doyle (2012: 163–164), there are six main purposes for the existence of merchandise:
One of the key functions of merchandise is as a dynamic revenue generator, offering agents a vital income stream through direct sales. In addition to its financial value, merchandise functions as a physical reward system and a token of appreciation, thereby strengthening and cultivating fans's loyalty within commodifiable structures.
Merchandise serves as an exceptionally efficient tool for endorsing brands and products, essentially becoming a mobile advertisement that enhances visibility and recognition. When used in specific situations, it transcends the realm of promotion and becomes a crucial component of the overall brand or event experience, inextricably linked to the essence and identity of the organisation it represents. Beyond only being a means of completing transactions, merchandise enhances the emotional and sensory aspects of consumer interaction with an organisation, artist or situation.
According to Doyle (2012: 163–164), merchandise is not merely a commodity for sale; it is intricately intertwined with brands, organisations, and consumer experiences, playing a pivotal role in establishing identity, financial sustainability, loyalty, visibility, and the emotional resonance of special moments. Therefore, in order to create a successful merchandise line, the product needs to meet all of these values.
To fully understand the demise of textile merchandise as a garment (t-shirt, hoodie, hat, etc.), we need to look at its life, definition, function, and meaning. It falls under the fashion category, where everything we wear is described by academia as an embodiment of “gender, race, ethnicity, sexuality, class, national identity, age/generation, place and other positions that are shifting through the complex power relations” (Kaiser, 2012, pp. 29–30). As a social phenomenon, it bridges cultural theory and fashion practice while considering the influences on individual actions and decisions on what garment to wear. From a broader perspective, what we wear is deeply connected with trends reflecting the current social, economic, and political circumstances and demand for newness (Lantz, 2016). Garment production is actively reacting to the changing zeitgeist of society and, in some cases, the intellectual, moral, and cultural climate of an era (Rocamora, Smelik and Entwistle, 2016; Lantz, 2016). Merchandise products meet the same definition; their reflection of current social, economic, and political circumstances might even be strengthened. In the 1990s, the Riot Grrrl movement promoted feminist action through goods such as T-shirts, buttons, and zines. Bands like Bikini Kill and Sleater-Kinney distributed these trinkets during concerts and protests to represent opposition against sexism and patriarchy. In recent years, Kendrick Lamar's song "Alright" has become an anthem for the Black Lives Matter movement. Lamar released items containing lines from the song, such as T-shirts and sweatshirts with the phrase "We're gon' be alright." Fans wore merchandise to protest police brutality and systematic racism, echoing the song's themes of resilience and resistance.
These items allow the institution and artist to express their concerns and push for change. But at the same time, garments are a volatile medium.
In the book Fashion Zeitgeist, Barbara Vinken describes fashion systems as the art of “perfect momentum”; this realisation makes them vulnerable. By defying the exact moment in time, fashion leads to its own death as the moment passes. The same principle can be applied to merchandise. Despite trend cycles becoming shorter, there are still distinct visual preferences when it comes to promotional items. Merchandise from 5 years ago may seem outdated due to factors such as its fit, colour, size of the print, or graphic design.
In summary, fashion responds to individuals' self-expression needs and societal visions, blending elements of art, commerce, and functionality. However, the general consensus among writers is that commerce has a significant impact on fashion, defining merchandise as a commodity.
The Commodification of Merchandise
Considering merchandise's income creation and economic capital, I have looked into one of the titans of the music merchandise market, Universal Music, with whom I collaborated on a previous project or research. Merchandise as an income creation machine, produced by daughter firm Bravado, produces standardised garments with prices of 19–30€ for t-shirts and 40–85€ for hoodies, with no sustainability certification (some organic cotton) generated in the linear supply chain. AC/DC had the best-selling T-shirts, followed by Aerosmith, Queen, Pink Floyd, and Green Day. Younger or living artists performed worse, with the exception of Ariana Grande, ranked 10th and Taylor Swift, ranked 18th (Elan, 2021). With €706 million in revenue in 2023, merchandise accounts for 15% of Universal Music Group's total income (Universal Music Group, 2024).
The company just launched a three-floor merchandising store in Tokyo, Harajuku. Just to describe the scale that the company works with while producing merchandise, here is one of the Google reviews, as I was not able to visit:
''T-shirts, long sleeves, hoodies, polo shirts, CAPs, socks, mobile accessories, key chains, stickers, magnets, bags, sneakers, etc. I wish there was more variety in the products. Unfortunately, there were no clothes or products with designs that I wanted to wear. I think the store staff's response was very good. I look forward to the future product lineup.'' (Hidetaka Toyoda, 2023)
Similar to the BTS store in Kyoto and other K-pop stores that monetise fandom. In all cases, there is a wide range of products available, yet sustainability standards are rarely followed.
According to business research insights, merchandise and licencing generated a total of USD 29.7 billion in 2022 (www.businessresearchinsights.com, 2024). A licence is defined as a contract that permits one party to use and sell another's copyrighted material for commercial or business purposes. An additional definition of merchandise could fall under the promotional product industry, which Statista (2024) estimates to be worth $25.5 billion. It may not be possible to precisely calculate the size of the industry due to the frequent distribution of revenue streams among various capital exchange participants; however, given the industry's impact, it remains substantial and in need of innovation.
The production and life cycle of merchandise products have an impact on the environmental footprint of humanity. Raw material extraction and processing, as well as manufacturing processes and transportation, all contribute to greenhouse gas emissions, water pollution, and resource depletion. A critical examination of these processes is needed to understand the scale of the environmental impact associated with the production of merchandise.
Subjects frequently use a variety of promotional items to increase brand awareness and engage with their target audience. Here are some examples:
Merchandise in the meaning of token could also be divided into those that were obtained by direct purchase (such as t-shirts, hoodies, tote bags, etc.) or those that fans gained for free or as an externality from various activities (wristbands, cups, earplugs, etc.).
However, to remain within the boundaries of my expertise, I will concentrate on the most prevalent ones, specifically textiles and fashion. According to the AtVenue report (2022), one of the leading live event commerce platforms, T-shirts, generated 51% of the sales of music merchandise; the next 20% of goods also fall under the textile product category. The prominence of textiles is clearly apparent in both the Slovak and international festival scenes, as they are the primary focus of the product offerings. Concerning the galleries, there are several renowned clothing collections produced by Moma, VA, Tate Modern, and other artists that generate income. While they may not be the most significant items in the gallery's offerings, items such as tote bags, hats, or t-shirts are typically the most recognisable ones.
While the majority of the available merchandise offerings in galleries, festivals, and by artists may be standard, there are numerous ways to enhance a product's commercial potential, value, or alignment with responsible principles.
Merchandise in the Context of Textile Industry Dynamics
While looking at the impact of merchandise production that is not separately calculated, I used a textile industry lens to get a peek at the magnitude of the merchandise production impact. The textile industry, which employs hundreds of millions of people and generated $1.5 trillion in revenue in 2020 (Shahbandeh, 2021), is a thriving industry that stands out for its sophisticated retail, production, logistics, and marketing. Its driving concept is the maximisation of profits. This surpasses the scale of the merchandise industry by more than 50 times. However, the majority of the products—more than 70%, based on information from the venue; in my experience with Slovak festivals, even more—meet the same requirements and are classified as textiles. Therefore, these calculations may shed some light on the real environmental impact of merchandised products.
The textile production system, as we know it, is described as linear (Han et al., 2016), meaning most clothes produced from non-renewable resources end up in landfills; in 2018, 17 million metric tonnes of clothes were discarded, the equivalent of 5.8 percent of municipal solid waste in the United States, of which only 14.7 percent was recycled (US EPA, 2018). In the last 15 years, clothing production has approximately doubled (Ellen MacArthur Foundation, 2017). Textile waste, in particular, presents challenges due to its slow decomposition, toxicity, and potential to release harmful substances into the environment. An examination of waste management practices within the industry is critical for understanding the broader environmental implications.
Consumer preferences constantly change due to new inputs. Globally, approximately $460 billion worth of used clothing ends up in landfills every year, which is about 40kg per person (Fashion Revolution, 2020; Boone, 2009). The main reasons are wear and tear and the fact that the garment is no longer fashionable (Laitala and Klepp, 2020).
It should be noted that there has been a significant positive development—a massive force altering the fashion market setup. In 2019, the second-hand clothing market, now worth $379 billion, expanded 21 times faster than traditional pre-consumer linear retail; this expansion is projected to triple in the next 10 years, although the growth of the second-hand market is still a small proportion compared to disposable fashion production (Park, 2021). Online retailers were the main drivers of the second-hand market's expansion during the COVID-19 pandemic as consumers changed their preferences for used clothing and joined resale platforms (ThredUp, 2020). Alarming data from several sources urges fashion consumers to change consumer behaviour that glorifies excess and overconsumption. There is a growing trend towards second-hand clothing, which is seen as the most sustainable and viable option from a consumer perspective. However, instream fashion production is struggling, and companies are struggling to successfully implement it into the reverse supply chain (BOF, 2021). It is agreed that the garment industry is experiencing a disruption in its discourse, sustainable practices and approaches. There is a need to implement circular narratives that value existing post-consumer and pre-consumer waste.
The same logic and customer preference data can be applied to merchandised goods. Secondhand clothing and post-consumer waste can be integrated into merchandise, as I have already demonstrated on Flaam, Pohoda, and Next festivals. This creates a compelling narrative that drives sales and decreases environmental impact.
In recent years, the circular economy concept has become more popular as a practice that navigates a positive future. Developed in the 1960s and 1970s, it relates to the flow of materials in a system that returns and remakes resources in a closed loop (Ekins et al., 2019). The Ellen Macarthur Foundation further investigated this strategy and applied it to fashion with the help of strategists and experts. Together, they created circular butterfly diagrams that present a new narrative of the business value chain. The main goal is to renovate and regenerate resources through the idea to "minimise the disposal of waste and the need for raw materials by keeping existing materials and assets in the production cycle” (Ellen Macarthur Foundation, 2017).
There are a few key product-related principles closely connected to the product life cycle approach in the initial process design phase, such as designing for longevity, modularity, and closed-loop systems.
Another way to achieve a product in line with circular principles would be to rethink , redesign, reduce, reuse, and recycle. These guidelines support efforts made on a global scale to adopt sustainable patterns of consumption and production, as highlighted by Sustainable Development Goal 12 by the United Nations (2024) as well as the European Commission (2019).
Rethinking, adopting, and developing interventions to move current practices towards sustainability is the first step in the process. Examine the merchandise value chain for opportunities, and reconsider the traditional product setup. This is a strategic phase that establishes the foundation for the values and provides a narrative that is executed along the way.
Redesign by putting earlier ideas into action. Redesigning distribution, supply chain, customer experience and other touchpoints in the journey of the merchandise. One instance may be a hands-on workshop where participants create a customised, one-of-a-kind item.
Reducing the use of harmful materials in processes to minimise waste generation and environmental impact. This step provides an opportunity to assess the existing inventory or previously manufactured products that may be destined for disposal, aiming to minimise waste generation. There might be possible candidates for repairing, refurbishing, and reselling products, or by using them for different purposes or by using deadstock from previous years that can be used. Reduce means to cut back on the amount of trash we generate.
The reuse principle is about encouraging organisations to adopt a reuse-oriented culture rather than a throw-away one by encouraging the repurposing and repair of materials and products. The act of finding new uses for items that would have otherwise been thrown away is known as reuse. For instance, this may involve re-printing existing customer products with new graphic designs. Recycling is an eco-friendly method of waste disposal that promotes recycling or uses recycled materials to make new products.
The circular economy not only addresses urgent environmental challenges but also opens up new opportunities for innovation and sustainable growth, making it crucial to navigate sustainable and regenerative futures.
The regenerative economy seeks to balance environmental, social, and financial goals to achieve sustainability beyond circular practices, aiming for environmental equilibrium and holistic well-being. It involves ensuring an understanding of how various mechanisms function and striving to cultivate ways for people and nature to coexist.
According to Reed (2007), instead of simply attempting to make the built environment sustainable, we should pursue a more regenerative strategy that focuses on reducing harm through impactful and mindful change. Using this approach, you engage with the surroundings by planning with biological systems' well-being in mind, moving from separate structures to a broader framework. Achieving this in a consumer environment requires a significant cultural shift, including greater awareness and integration of the connectivity of living systems. As suggested by Reed, we may go beyond sustainability and actually restore the health of the environment and, consequently, our own by being knowledgeable about the different ecosystems prevalent in each location and developing strategies that promote mutually beneficial partnerships. This concept aligns with deep ecology, which strives for a connection to the entire web of life and views sustainability as actively regenerating the ecosystem in addition to minimising harm.
Just to adjust the framework to the textiles, there are three aspects that might be applied to regenerative merchandise production:
Reed (2007)
The most well-liked strategies in the textile industry would be to follow regenerative agriculture's example and follow the textiles downstream to the crop or to work locally to reduce transportation costs and create jobs, knowledge, and skills within the community. Creating a supply chain that supports and mentors marginalised communities in producing merchandise with added value would also be a possible application.
Now, let's delve into a specific example that demonstrates how supplies can be developed by applying the principles of the regenerative economy, with an emphasis on the textile sector.
Getting the materials is the first step in the journey. Purchasing cotton from growers and farmers who use regenerative agriculture is the first step in the supply chain. Crops grown with this technique are not only environmentally friendly but also regenerative since they restore soil health, sequester carbon from the atmosphere, and foster local biodiversity.
Designers meticulously plan each item to minimise fabric waste, employing a zero waste approach that focuses on efficient material usage and sustainable production methods. To ensure that nothing ends up in a landfill, the minimal quantity of garbage that is produced is either composted or repurposed into accessories. The design concept prioritises durability and style, urging customers to regard their purchases as enduring investments rather than one-time restorations.
To reduce carbon emissions during the production process, the merchandise and apparel supply chain makes use of locally owned, renewable energy-powered facilities. By paying fair rates to local craftspeople, the business supports the local economy or marginalised communities in the area. This lessens the transport sector's carbon footprint while also fostering a stronger sense of community and guaranteeing that employees receive fair treatment.
The company's supply chain not only involves selling clothing but also includes offering repair, customisation, and upgrading services to extend the lifespan of its products. They also have a take-back programme that allows customers to return used items in exchange for a discount on their next purchase. Returned goods are recycled into new materials that are then added back into the production cycle, or they are repaired and resold.
The packaging contains guidelines on how customers can responsibly recycle or prolong the life of their items. It is made entirely of recycled materials and is compostable or recyclable. Consumers are being educated and treated with transparency, which is one of the primary values. Merchandise not only follows the principles of the regenerative economy through these particular methods but also opens the door for industry-wide transformation. It is part of the movement towards a more sustainable and regenerative future by proving that it is feasible to make goods in harmony with the environment, boost local economies, and encourage customers to engage in sustainable behaviours.