The economy of the fandom experience:

Merch, innovation, and sustainability

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Global Innovation Spotlight

Everybody’s part of a fandom nowadays, with many people being part of several communities for different musicians, bands, movies, series, and sports teams at the same time. Since many are quite passionate about the fandoms they’re part of, it’s natural that they’d want to wear their interests on their sleeve. Enter the world of merch, a multi-billion-dollar industry supported by the fans who want to invest in physical goods that express their identity as part of such a community.

Merchandise is typically released as part of limited editions, causing fans to rush to buy, especially when something new is released, such as an album or a film. Unfortunately, this practice has also led to the development of practices such as scalping, which sees people buy the items only to sell them later for much higher prices. The emotional connection, however, is the main driver behind genuine fans purchasing the merch, as it helps people feel closer to the media they’re interested in, as well as feel like they’re part of a tight-knit community.

The customer experience

Merch has the ability to create tangible proof of belonging to a community and can enable you to become part of a shared culture between creators and fandoms. Unless you’ve ever been truly dedicated to a fandom, there’s no way to understand what that actually feels like. But if you have, you know that it’s actually quite easy to get hooked on the hype and become a collector. Funko, home of Funko POP! figures, is one of the favorite places of fans from all over the world due to the large number of figures they have across many different fandoms, from animation to sports and from manga to music.

Apart from figures such as these, merchandise also includes apparel and accessories, as well as numerous miscellaneous items that have personal significance for those who are aware of the intricacies and lore of the fandom. The merch is not only important for the fans, though; it can also act as a primary revenue source for the artists, giving them full ownership of the proceedings compared to record labels or large studios. In this sense, the fans can feel like they’re making a difference for their favorites as well, and that they’re actually rewarding them for the work they put into their creations.

Fandom-driven events such as concerts or fan conventions frequently provide their own unique and exclusive merch as well, a strategy that has convinced superfans to travel to different areas in order to access these items. This makes merch a lucrative sector for local economies as well. Apart from the official merchandise, though, fan-made items and bootlegs are becoming increasingly popular as well.

Fans who create

The fact that fans like to expand the universes they’re fans of and create fan works of them, in the form of writing, visual arts, music, and even videos, is something that’s mainstream knowledge at this point. However, creating merchandise of these fan creations and monetizing them is an entirely different thing and quite often a slippery slope in the fandom. While some see it as just another layer of the fandom experience and are keen to buy the items to support these small creators, others point out that the fact that the designs aren’t officially approved can count as copyright infringement and is unfair towards the intellectual property of the creators who came up with those ideas in the first place.

DIY-ing merch for yourself is one thing, but it’s another to sell products that carry logos, song titles, and the names of people, which are often protected by property rights. When official trademarks are used by people who aren’t officially allowed to use them, there can be quite a lot of confusion. If fans purchase such goods mistakenly believing that they are official and they end up dealing with any sort of trouble as a result (such as health issues due to the dyes used in a band t-shirt, for instance), the artist’s name can be harmed.

However, in many cases, artists feel like they’re not in a position to demand legal action due to concerns that it can make them come across as disconnected from the community and pretentious, a phenomenon that can be regarded as both legitimate and fundamentally unfair depending on one’s perspective.

Social media creators

Social media has become increasingly important in people’s lives over the last few years, with more and more people becoming fans of content creators who discuss a variety of topics on platforms such as YouTube or TikTok. These individuals earn their income from many different sources, including brand sponsorships, advertisements, subscriptions, and, of course, merch. Some have called into question the ethics of these fandoms, saying that these creators don’t actually bring anything to their audiences that could justify the creation of merchandise, which essentially becomes nothing more than a cash grab devoid of the meaning that makes merchandise special in the first place.

However, there’s no denying that many people are willing to reach into their wallets to get their hands on the limited-edition hoodies, reusable coffee cups, and keychains that content creators release. The very nature of their content makes it easy to create excitement, as the upcoming launches are often briefly discussed alongside the typical content, making customers excited to buy. The communities can also become very intense and invested in this environment, generating considerable demand for the products.

There’s a well-known example of a creator who earned a whopping $600K in only sixty days as a result of the sale of a red hoodie. That’s because the people who bought it did so for the joke and community as well, not just for the garment itself.

The bottom line

To sum up, merch remains paramount for fans worldwide, many of whom are ready to pay substantial sums to bring home pieces featuring their favorites. However, the sector is facing challenges as well, including the rising cost of living, which makes it harder for people to afford non-essential items; environmental concerns about excessive consumption; and the possibility of reaching peak saturation in some areas.

But while some think that these factors could end up signaling the death of merch as we know it, others point out that people will always be willing to spend on what makes them happy.

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