Branded tote bags, T-shirts and other merchandise have become a growing business for companies far beyond music and sport, as consumers increasingly use everyday products to express their identity and sense of belonging.
A tote bag from a favourite bakery or coffee shop might seem like an unlikely fashion statement. Yet merchandise has become a powerful marketing tool, with businesses of all sizes finding new ways to turn their brands into products customers want to wear and display.
The trend was on full display in the United States on September 30, when Trader Joe’s released a limited-edition collection of miniature Halloween tote bags priced at $2.99. The launch attracted long queues, while some stores restricted the number of bags customers could buy. Resale listings subsequently appeared online at prices ranging from $20 to an ambitious $50,000.
The craze is part of a much larger market. Research firm Oxford Economics estimates that global spending on merchandise reaches $338bn annually, encompassing licensed products, branded clothing, promotional goods and items made to order.
From independent bookshops and neighbourhood cafés to technology companies, an expanding range of businesses are discovering the commercial appeal of selling products bearing their names and logos.
Cheap products, valuable publicity
Merchandise has long been a major source of revenue in entertainment and sport. Children’s products linked to popular films, concert T-shirts and football shirts are familiar examples. Arsenal, for instance, recorded a 26% increase in kit and merchandise revenue to £130m during the 2024-25 season.
What has changed is the range of businesses adopting the strategy.
Tote bags have become particularly popular because they are relatively inexpensive to manufacture but can generate substantial visibility. A bag produced for less than $1 in bulk can be carried through streets, public transport and shops, exposing a brand to thousands of potential customers.
Independent bookshops such as Daunt Books in London and Shakespeare and Company in Paris have turned their branded bags into recognisable accessories. For these businesses, merchandise offers a way to extend their identity beyond their premises while generating additional revenue.
Companies are also using humour and novelty to attract attention. German supermarket chain Lidl, for example, released a parody England football shirt called the Three Lidls Jersey in June. Designed to resist liquids and odours, the product sold out in just 55 seconds.
Technology companies have joined the trend, too. Palantir released branded tennis clothing in July, while OpenAI introduced its first publicly available clothing collection, illustrating how merchandise has expanded well beyond traditional consumer brands.
A new way to signal identity
The appeal is not simply about advertising. For consumers, merchandise can communicate personal interests, experiences and affiliations.
Jared Watson of New York University argues that younger consumers are increasingly using clothing and accessories to express their individuality through places they have visited and experiences they value. Conventional fashion brands may feel generic by comparison, while a bag from a particular café or bookshop can tell a more personal story.
Connor Archbold of brand consultancy Tracksuit describes the shift as a change in how people communicate status. Rather than relying primarily on expensive watches, designer labels or conspicuous price tags, consumers increasingly signal their taste and the communities to which they belong.
The trend also reflects a desire for connection. In a society where many people have limited involvement in traditional civic organisations, wearing merchandise from a niche business or cultural institution can help identify like-minded strangers.
A tote bag from an independent bakery, for example, can become a subtle marker of shared taste. Its value lies not only in the product itself but also in the recognition it may generate from others who know the brand.
The pandemic helped accelerate this behaviour, as consumers sought ways to support favourite local businesses and maintain connections with places that mattered to them.
From company merchandise to personal souvenirs
The next stage of the trend is increasingly personalised merchandise. Online platforms such as Etsy allow customers to create bespoke cups, T-shirts, matches and other products for birthdays, weddings and other celebrations.
Some people are also beginning to treat their homes as brands in their own right, producing personalised gifts and souvenirs for guests. The idea reflects a wider shift towards valuing experiences and the memories associated with them.
As consumers place greater emphasis on experiences, the objects that commemorate those moments can become more meaningful. A branded bag or personalised keepsake is no longer just a functional item: it can represent a favourite place, a shared occasion or a sense of belonging.
For businesses, that creates an opportunity to turn customer loyalty into a visible, mobile form of marketing. For consumers, it offers a way to carry a small piece of an experience into everyday life.
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