Since seemingly forever, branded merchandise has lived on the outskirts of marketing strategy. It’s often treated as a giveaway or an afterthought—something that only belongs when you have to do a trade show.
In a past life at a branding agency, I was as guilty of this thinking as anyone. We believed that a new company logo absolutely had to look great on a baseball cap, but we never got around to designing and ordering it until the very end. And we often thought about the caps’ price first and even rolled our eyes at the request, considering it a waste of budget.
Wow, was I wrong. We now live in a world where real-life, one-to-one connections should matter more to brands than ever. We’re overrun with impersonal, swipe-right ads and marketing messages all day, everywhere we look. And a branding opportunity as intimate as a product people wear on their bodies or take with them everywhere they go can no longer be an afterthought.
In this way, I see merch evolving into a primary channel for building lasting brand connections, shaping perception and delivering long-term impact. For organizations and leaders willing to rethink their approach, the opportunity can be significant. Here’s what’s changing.
1. From Volume To Value
Consumers don’t want more products. They want better ones. Across the market, research shows that merch can drive strong emotional responses, increasing brand favourability and appreciation. But low-quality items don’t just get ignored or tossed; it can actually weaken brand perception.
Durability, design and material quality now determine whether a product is kept or discarded. Cultural values are on display with the products we choose, as Starbucks showed in a recent collab with Peanuts characters to promote kindness.
One product that earns a place in someone’s daily life is more valuable than dozens that don’t. Therefore, I recommend you shift from quantity to relevance.
2. Retail Quality Is Now The Standard
Related to my first point, one of the biggest shifts in the game right now is toward retail-inspired design.
Buyers are prioritizing products that feel like something they would purchase themselves. Think better fabrics, cleaner design and more thoughtful construction. Or co-branding with the likes of Nike, Patagonia and Yeti gear. The merch that works now comes off the display rack, not out of the bargain bin.
The next time you’re at an airport, look around at the kind of logoed items people wear or carry proudly. You see it especially in apparel, drinkware and tech. It’s about intentional design. The most effective branded products don’t look promotional. They fit naturally into everyday life. Take the Aussie hardware retailer whose hat went viral with fashion influencers. Great merch now signals a person’s tastes and values, not “this space for rent.”
A useful test for brand builders: Would someone choose your product if it had no logo at all? If not, rethink the item. You can do better.
3. Experience Drives Impact
Products alone are no longer enough in physical marketing. Curating a full experience is becoming just as important. Touch, yes, but also sight, sound, smell and taste.
At the most beloved brand activations, customization and interaction consistently outperform static distribution. Build-your-own items, on-site personalization and immersive moments create stronger engagement. These are the new normal in merch. “Give us your email address and we’ll give you a pen” doesn’t live here anymore. People want experiences, not transactions.
In many cases, the product is simply the extension of that experience, a lasting reminder of a moment. Luxury destinations and hotels have figured this out. I think more brands should think beyond distribution and ask how their merch creates interaction, not just exposure.
4. Core Categories Still Work, But Must Evolve
Apparel, drinkware, bags and technology remain among the most effective physical advertising categories because they align with daily routines. People take them places and generate impressions. More impressions mean a greater return on investment (ROI).
But expectations within those categories have changed. Apparel now reflects modern fits and softer textures, with retail aesthetics. Drinkware and bags are more design-forward and sustainability-conscious. Tech products signal innovation and relevance.
People will always have use for these categories. You’ve got to wear something. You’ve got to drink out of something. The strategy that works isn’t to replace these staples but to upgrade them. A familiar product, executed well, will outperform a novel one that feels disposable.
5. Sustainability Is Expected, Not Optional
Sustainability is no longer a niche request. Especially for major brands with sustainability goals of their own, it’s becoming a baseline expectation.
A major part of this shift is a result of our changing demographics. Younger consumers increasingly associate environmentally responsible products with brand trust. But more importantly, they expect transparency. Materials, sourcing and impact matter more than messaging alone.
For brands, this means sustainability (the real thing, not greenwashing) should be built into product decisions, and better still, part of the storytelling about why the merch piece was selected.
Strategy, Not Compulsion
All of this is to say, based on everything we observe in marketing, merch is no longer an ancillary tactic intended to round out a campaign so that we can call it integrated.
These items are a strategic medium for your brand with long-lasting importance. A well-chosen item can live with someone for months or years, becoming part of their routine and reinforcing brand connection. They become braggable and boastable within social circles. And they create joy each time the loyal recipient wears it, fills it up or plugs into it.
Brands that win will treat merch accordingly. They will prioritize design, quality and relevance. They will make merch among the first considerations in broader campaigns. And they will focus on creating items people choose to keep, not just accept.
This is a crowded, impersonal, digital-first world. The most powerful impressions are often the ones people can hold on to.
Feature image credit: Getty