As I write this, I am surrounded by hi-fi merchandise. Without looking too hard, I can see multiple branded products in my office: pens from most of the manufacturers in the audio industry, a fine selection of tote bags, a ruler, a few USB sticks, a battery charger, a premium baseball cap from an excellent Canadian company, and a particularly stylish Moleskine A5 notebook and pen set from a Danish loudspeaker manufacturer. Later, I may have a cup of coffee in a mug from the same Danish company, and tonight I might end the day with a whisky in an engraved glass from the UK’s finest audio distributor.

It’s a nice perk of the job, but does it work for the companies that create them?

Well, it certainly works for the music industry – my home is littered with band shirts, hoodies and baseball caps. The global music merchandise market, which includes sales at concerts as well as online, and through retail outlets, was recently valued at around $5 billion annually.

A substantial portion of this revenue comes from concert sales, where an estimated 20 percent of fans purchase items like T-shirts, posters, and other memorabilia as part of their concert experience. 

In many cases, merchandise sales can constitute a large part of an artist’s income, sometimes even surpassing earnings from ticket sales, especially for well-established artists with large, loyal fanbases. This also applies to lesser-known bands; I’ve been to many small gigs where, after the show, the entire band is behind a table trying to sell enough gear to cover their rent.

The growth of the merchandising market is driven by several factors, including the rise of mega-tours, where high-profile artists perform in stadiums and large venues, generating millions in merchandise sales. The commercial teams behind the Stones and Taylor Swift are the masters of this. Moving slightly away from this area, I really like how Ed Sheeran has subtly sponsored the shirts of Ipswich, his hometown club.

So, to answer my initial question: does merch work? Clearly, it does for the music industry, especially as there is an increasing demand for exclusive and limited-edition items, often only available at concerts – everyone wants to be unique, right?! 

And for the hi-fi industry? I think it does. If you can look past the obvious possibilities of plastic waste and landfill, a nicely branded and useful product makes me think favourably about the manufacturer.

How about you? There’s a little survey on this month’s newsletter which the Loud & Clear folk would be very grateful if you completed. Please let them know what you think.

Matt Tasker (Ammonite Media), August 2024