Arenametrix Blog

Optimizing merchandising for sports organizations: tips and strategies

Written by Baptiste Sauvanaud | Dec 24, 2024 7:33:06 PM
It is common in the industry to correlate the sales performance of merchandise with the sporting success of the team or the renown of the event in question. Unfortunately, merchandising activities are too often relegated to the status of an ancillary revenue source, with little to no significant investment.
Yet, numerous levers exist to invigorate this area.

Pioneering clubs in this domain, such as Manchester United, have managed to achieve merchandising revenues nearly equal to ticketing revenues (£109.9 million and £110.5 million, respectively, during the 2021/22 season). This success largely stems from establishing a well-defined brand identity combined with a thorough understanding of target audience expectations, facilitated by data utilization to create a seamless customer journey. Add a touch of originality—whether in design or marketing—and you have a strong foundation for a successful merchandising strategy.

In this article, we share our best practices on the topic.


Developing a strategy aligned with your organization

A well-executed merchandising strategy requires meticulous planning, ideally well in advance of key milestones (from one season to the next).
In the entertainment industry, leaders are often found in sectors such as cinema and theme parks. These industries incorporate merchandising strategy at the very inception of their projects, allowing sufficient time to define product categories, manage designs, identify the best suppliers, and anticipate listing, distribution, and inventory needs. A standout example is the TV series Ted Lasso, which bridges the worlds of television and sports. The show launched an extensive catalog of merchandise featuring the fictional football team at the heart of its story.

Before undertaking an organizational transformation centered around merchandising, it is essential to establish relevant performance indicators (KPIs) to evaluate activities effectively. Here are a few key examples:

Here are a few key exemples :


  • Revenue generated
  • Comparison of merchandising revenue to ticketing revenue
  • Ratio of social media followers to merchandising revenue
  • Ratio of items sold to total orders
  • Ratio of buyers to contacts in the database
  • Number of SKUs (Stock Keeping Units) in the catalog
  • Revenue generated per SKU

A strong brand image and the art of storytelling

 At the heart of any merchandising strategy lies storytelling—the art of crafting a compelling narrative. A sports organization should not merely sell yet another product to generate revenue.
Instead, it must focus on building a strong brand image that fosters a sense of belonging and unites supporters around shared values.
Elements such as the emblem, colors, slogan, and mascot are imbued with history and symbolism, serving as powerful tools for the creation of collections.
Sport is much more than just a game; it carries a profound social dimension.
Sports organizations often champion causes aligned with their core values.
Recently, numerous institutions have introduced product lines that move beyond the realm of sports, focusing instead on social initiatives or sustainable development.
For instance:


These collections are not intended to generate profits but rather to unite fans around shared values and strengthen brand identity.
Such actions often prove advantageous in attracting partners, whether through sponsorships or collaboration with local authorities.
 
A prime example of a club that has succeeded in building a strong brand identity despite modest standings in Germany’s second division is FC St. Pauli.
Although the club has not won any major titles—unlike its local rival Hamburg SV, which boasts six championships—it generates the fourth-highest merchandising revenue in Germany, contributing 15–20% of its annual turnover.


Politically outspoken and socially engaged, the club has become a symbol that transcends sports. This is evident in its decision to produce its own team jerseys to reduce its carbon footprint. Fans from around the globe identify with the club’s values, purchase its merchandise, and, in doing so, become ambassadors of its image.

Eventizing your offer and catalogue innovations

In recent years, we have witnessed a growing trend among major European clubs to "eventize" their collections. This approach highlights special occasions and introduces a dynamic rotation in the products showcased.
By avoiding the constant exposure of fans to the same references and products throughout the year, this strategy keeps the offering fresh and appealing.

Numerous examples illustrate this trend, often aligning with lifestyle collections that bridge the gap between the sports environment and the fashion world, targeting audiences less directly connected to sports.

Here are a few notable exemples :


While the examples above involve prominent organizations with extensive internal resources and strategic partnerships, there are ideas that can be adapted by smaller structures with some dedication and creativity:

Seasonal Collections: Creating merchandise aligned with the seasons is an excellent way to refresh your product offering. Winter holidays can feature items like sweaters and scarves, while summer can bring caps and bucket hats, allowing fans to represent their team or event year-round and reinforcing your brand identity.

Retro Collections: Paying tribute to past achievements through retro designs can captivate long-time fans and supporters with a love for nostalgic aesthetics. Noteworthy examples include FC Nantes’ anniversary jersey celebrating 80 years of the club and Olympique de Marseille’s jersey commemorating the 30th anniversary of their European Cup victory.

Engaging with underrepresented segments

Often overlooked, certain segments deserve greater attention—such is the case with female audiences. Already potentially interested in merchandise derived from men’s sections, the growth of women’s sports presents a valuable opportunity to better serve this demographic. Women’s sports are experiencing a significant increase in media coverage and viewership, as evidenced by the recent women’s rugby match between England and France, which set a record for such events with over 58,000 spectators. It is therefore no surprise to see sportswear brands launching high-profile collections tied to the 2023 Women’s Football World Cup. Tailoring products with women-specific cuts and releasing special collections are just some of the initiatives opening up this expanding market of potential customers.

Children are another audience not to be overlooked. There is no age limit to being inspired by the feats of athletes, and sports often become a family affair.
At an age when growth spurts are frequent and adventurous activities take their toll on clothing, official match kits can be expensive. It is recommended to complement collections with more affordable items, such as pajamas, t-shirts, or caps. A bonus: collections centered around mascots tend to be particularly popular with children—for instance, the plush toys of Olympique Lyonnais or the mascots for the Paris 2024 Olympic Games.


Finally, the previously unregulated market for worn or autographed official jerseys has recently seen formal actors entering the space. Often based on auction systems, these sales allow the most passionate fans to acquire jerseys whose emotional value far exceeds their monetary worth. It is worth noting that proceeds from these sales are frequently donated to club foundations or charitable organizations.

Best practices for physical and online retail in sports merchandising

a) Physical stores

The era of managing sales channels independently is long gone.
Today, multichannel strategies are far more effective in reaching fans through complementary channels tailored to the moment, the opportunity, and the message being conveyed. Customer experience has evolved; seamless integration between channels is essential, ensuring all touchpoints are interconnected.
For instance, the online store can serve as a product catalog for customers planning an in-store visit. Therefore, maintaining a consistent product catalog both online and in-store is imperative. The "click and collect" option exemplifies the synergy between channels: orders are placed online, and customers can retrieve them at the stadium store during the next game.


Best pratice : Implement a unique identification system linked to a centralized database for subscribers, applicable to transactions in-store, at concessions, or online. This approach simplifies tracking preferred items and purchasing behavior across sales points, paving the way for personalized marketing strategies. The ultimate goal: deliver the right offers to the right contacts at the right time through the appropriate channel.

Match-day sales represent a significant portion of merchandising revenue—20% for FC Lorient and nearly 30% for RC Strasbourg. To capitalize on these high-traffic periods, it is crucial to optimize store operations to reduce wait times and encourage purchases. Highlighting popular products like jerseys, scarves, and seasonal items (sunglasses, caps, gloves, and beanies) can boost sales. Additionally, deploying mobile vendors within the stadium corridors with a curated selection of items can enhance accessibility for fans.

Beyond being a retail outlet, the store is also a community hub where fans can meet players during signing sessions or participate in events organized by sponsors or partners. The store’s layout should reflect the brand identity and values of the sports organization.


Strategic locations for store placement :

  • City centers to remain accessible to the local community.

  • Commercial zones to leverage high shopper traffic.

  • Airports or train stations, depending on the city’s tourist appeal.
 

b) e-commerce

A digital store is not an end in itself but a complementary tool to physical outlets. To drive traffic and effectively convert visitors into buyers, it must be supported by investments in digital marketing. Key strategies include:

  • Google Ads Campaigns: Targeted locally or nationally.

  • Facebook & Instagram Campaigns: Offering measurable ROI.

  • Effective SEO: Ensuring the online store ranks prominently in search results.

Conducting A/B testing on the online store’s interface is also recommended, enabling data-driven adjustments for optimal results.

Leveraging data for a successful merchandising strategy

Data utilization is a powerful asset for launching targeted marketing actions. Fans and prospects leave valuable data throughout their customer journey, which must be centralized within a robust database.

Integrating data from physical stores and online platforms into a CRM system enriches the contact database with valuable insights (e.g., contact details, subscription information, recent matches attended, merchandise purchases, average basket value, and email engagement). These aggregated insights are invaluable for segmenting contacts and fine-tuning merchandising campaigns via email or SMS.

Example: Target buyers attending the next match and invite them to visit the store with a special promotion.

Use Case: Increase match-day revenue fivefold through an SMS campaign

 

Promotional codes for merchandising are an excellent way to collect data. Associating a code with the submission of a survey is a strategic approach to acquiring qualified leads for your database while simultaneously enriching the profiles of existing contacts.

Effectively leveraging data also opens the door to automating and optimizing certain communications. This is particularly relevant for online stores, where it becomes possible to set up abandoned cart reminders. For example, an email can be automatically sent to a fan who has identified themselves but did not complete their purchase.

Merchandising and Sustainable Development: Enemies or Allies?

The challenges of sustainable development may seem at odds with the nature and expansion of merchandising activities. Climate, environmental, and social concerns resonate strongly with the public, who are increasingly aware and intolerant of greenwashing practices. However, this does not mean that nothing can be done.

The first step is to integrate environmental and social criteria into the selection of suppliers for promotional products. Here are a few essential questions to consider:

  • Does the manufacturing process involve toxic substances?

  • Are the items produced locally?

  • Are the production conditions acceptable?
 

Building on this foundation, more advanced initiatives can be undertaken, such as offering jerseys made from recycled materials. A particularly innovative example comes from the JL Bourg basketball club, which repurposed surplus jerseys and shorts gathering dust in storage to create a collection of upcycled bags and cushions. By leveraging old jerseys as raw materials, they found a creative way to promote sustainability.

Implementing a sustainable development approach, whether in merchandising or other areas, has become a strategic advantage for sports organizations. An eco-friendly jersey conveys a strong and positive image, making it a valuable asset in securing sponsorships to display on the apparel.

Beyond the revenue potential, investing in merchandising activities addresses a wide range of challenges, encouraging sports organizations to tackle critical issues: brand image, year-round marketing engagement, social and environmental responsibility, and equipping themselves with cutting-edge tools (CRM, e-commerce platforms, etc.).

As experts in the digital ecosystem for sports organizations, Arenametrix supports you in your transformation projects and the implementation of innovative solutions.