However, there are numerous ways to enhance merchandising. Some pioneering clubs, like Manchester United, have managed to bring in merchandising revenues almost equal to their ticket sales (£109.9 million and £110.5 million respectively in the 21/22 season). The secret to their success lies in establishing a strong brand identity, paired with a deep understanding of audience expectations—achieved through leveraging data to craft a seamless customer experience. Add a dash of creativity in design and marketing, and you have the foundation for a successful merchandising strategy.
In this article, we share our best practices on the subject.
Develop a strategy that fits your organization
Here are a few of them :
- Revenue generated
- Comparison between merchandising sales and ticket sales
- Ratio of social media followers to merchandising sales
- Ratio of items sold to orders placed
- Ratio of buyers to number of contacts in your database
- Number of catalog items
- Revenue generated per item
Building a strong brand image through storytelling
Sports are more than just games; they carry a social dimension, with many organizations backing causes that align with their values. In recent years, various sports institutions have launched product lines that extend beyond the field, tying into social initiatives or sustainable development. For example :
- Hertha Berlin released a jersey promoting diversity and fighting against homophobia
- Also in Berlin, Union Berlin launched a limited-edition jersey to promote youth culture and sports in the Kopenick district, home to their stadium.
- Puma introduced shirts made from recycled materials
These collections aren’t necessarily about profit—they aim to bring fans together around shared values and enhance the brand’s image. Such initiatives can also be advantageous when seeking partnerships, whether through sponsorship or with local authorities.
Politically active and socially committed, Sankt Pauli has become a symbol that transcends sports. One example of this is the club's decision to produce the shirts worn by its teams itself, as part of a drive to reduce its carbon footprint. As a result, fans on the other side of the world can identify with the club's values, buy merchandising and act as ambassadors for the club’s image.
Event-driven marketing and catalog ideas
Examples of this trend abound, often merging lifestyle collections with fashion, aimed at broader audiences beyond just sports enthusiasts.
Here are just a few examples :
- Manchester City released a capsule collection for the Chinese New Year
- Bayern Munich paid homage to Oktoberfest, one of Bavaria’s most famous traditions, with a special jersey.
- Formula 1 team Alpha Tauri designed a Miami inspired collection for the 2023 Grand Prix.
The examples cited above are indeed linked to large structures that have the internal resources and partnerships needed to bring these projects to fruition. However, with a little time to spare, some ideas are worthwhile :
Seasonal collections are also a way to liven up the merchandising offer and offer weather-appropriate products. Sweaters and scarves for the holiday season, and caps or bobs for the approaching summer, allows fans to showcase their team’s colors all year long, thereby spreading the brand’s reach.
Retro / vintage collections also hold strong appeal, as they pay tribute to past glories and attract both design aficionados and older fans who cherish certain eras. Successful examples include FC Nantes' anniversary jersey celebrating the club’s 80th birthday and Olympique de Marseille's jersey marking the 30th anniversary of their European Cup victory.
Better targeting of under-served segments
Often neglected, certain segments deserve more attention, such as the women. Already potentially interested in derivative products from the men's sections, the expansion of women's sport is an opportunity to better serve this target.
Women's sport is seeing a sharp increase in media coverage and spectatorship, as witnessed by the women's rugby game between England and France, which recently broke the record for a match of this type with over 58,000 spectators. It's no surprise that equipment manufacturers launched their collections for the 2023 FIFA Women's World Cup with considerable enthusiasm
Introducing women’s styles and special collections are just a few initiatives that open up the market to potential customers.
Sport is often a family affair, with no age limit on admiration for athletes’ achievements. As children grow quickly and wear out clothes during their adventures, match-day outfits can be expensive. Offering more affordable items like pyjamas, t-shirts and caps helps parents complete their collections.
Additionnally, mascot collections are often a hit with kids -think plush toys from Olympique Lyonnais or the Paris 2024 Olympic Games.
Finally, the market for worn or autographed jerseys, once largely unregulated, has seen the entry of official players. Typically operating through auctions, these sales allow the most passionate supporters to own jerseys whose emotional value far exceeds their monetary worth. Proceeds from these sales often go to the club’s foundation or a charitable cause.
Best practices for physical and online stores
a) Physical stores
Gone are the days when each sales channel operated in isolation; today, it’s more effective to deploy multi-channel strategies that reach fans across complementary platforms, depending on the situation and the message you want to convey.
The customer experience has evolved, and the integration between different channels must be seamless, with touchpoints interconnected.
For instance, an online store can act as a catalog before a customer visits a physical store to see the product in person. It’s essential to maintain consistency in the product catalog both online and in-store. The "click and collect" option is a prime example of this approach: customers order online and pick up their items from the stadium store on match day.
Best practice: implement a unified identification system linked to the subscriber database, covering transactions in the stadium store, refreshment stands, and online shop. This system makes it easier to track favorite items and understand purchasing behaviors across different sales channels, paving the way for personalized strategies. The goal is to offer the right products to the right people, at the right time, through the right channel.
Match-day sales represent a significant portion of merchandising revenue :
20% for FC Lorient and nearly 30% for RC Strasbourg. It’s crucial to adapt the store’s layout during these peak periods to minimize wait times and encourage purchases. Highlighting key products on match days, such as jerseys, scarves, and seasonal items (e.g., sunglasses, caps, gloves), can also boost sales. Additionally, deploying street vendors with a selection of items within the sports stadium can further enhance revenue.
More than just a retail space, the boutique serves as a community hub where fans can meet players during autograph sessions or attend events organized by partners or sponsors. The design of the store should reflect the image and branding of the sports organization.
Strategic locations for these stores include :
- Downtown areas to be at the center of local life
- Commercial zones to attract high foot traffic
- Airport or train station, depending on the city's tourist appeal.
b) E-commerce
In addition to physical stores, having an online shop is crucial, but it must be supported by digital marketing efforts to drive traffic and convert visitors into buyers. This includes well-planned editorial strategies on social media and targeted online advertising campaigns, such as:
- Google ads campaigns (local and/or national),
- Facebook & Instagram campaigns with clear, measurable ROI
- Effective SEO: for example, surprisingly Chelsea F.C.’s online store ranks only 8th in a Google search for “Chelsea gift”
It is also advisable to carry out A/B testing on the online store’s user interface and make adjustments based on the findings.
Data as a key success in merchandising
Leveraging data is a game-changer when it comes to launching targeted sales campaigns. Fans and potential customers leave a trail of data throughout their journey, but it’s crucial to have a centralized database to manage this diverse information.
Integrating the various data sources (ticketing, physical store, online store, website, access control, etc.) within a CRM tool allows you to build a richer profile for each contact (e.g., contact details, subscription status, last match attended, merchandising purchases, average order value). This data is invaluable for identifying fans and customers, analyzing their behavior, and facilitating effective segmentation.
With this data in hand, you can for instance design and send targeted email or SMS campaigns specifically aimed at those attending the next match, inviting them to visit the store and take advantage of a special promotion.
Use case: increase match-day sales
5-foldwith an SMS campaign
Merchandising promotional codes also offer a smart way to collect data. When paired with a survey, these codes can help you acquire qualified leads and enrich your existing database.
Efficient use of data is also the gateway to automating and optimizing certain communications. This makes perfect sense for online stores, with the possibility of setting up reminders for abandoned shopping carts. An automated email can be sent to fans who logged in but didn’t complete a purchase, encouraging them to return and finalize the transaction.
Merchandising and sustainable development: opponents or allies?
At first glance, sustainable development might seem at odds with the nature and expansion of merchandising activities. Climate, environmental, and social concerns are increasingly important to the public, who are quick to recognize greenwashing. However, this doesn't mean that nothing can be done.
The initial step is to consider environmental and social criteria when choosing suppliers for your merchandise. Key questions to ask include:
- Does the manufacturing process involve toxic substances ?
- Are the products made locally ?
- Are production conditions acceptable? etc.
Beyond these basics, more advanced initiatives can be implemented,, such as offering shirts made from recycled materials. JL Bourg basketball club has creatively tackled the issue of surplus jerseys and shorts by launching a collection of upcycled bags and cushions using old jerseys as raw material.
Adopting a sustainable approach, whether in merchandising or other areas, is increasingly a competitive advantage for sports organizations. An eco-friendly jersey not only conveys a positive image but can also be a powerful tool in attracting sponsors.
Ultimately, while merchandising can generate substantial revenue, it also brings several challenges to the forefront. It compels sports organizations to address critical issues such as brand image, year-round marketing strategies, social and environmental responsibility, and the need for robust tools like CRM systems and e-commerce platforms.
As an expert in digital ecosystems for sports organizations, Arenametrix supports your transformation projects with innovative solutions.