pandemic

Merch Consumer Trends of 2023

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Branded merch has become more and more of a necessity for brands and other service providers. This type of marketing is especially lucrative for online influencers and personalities.

In 2020, we saw a very big dip in overall sales of products such as clothing and footwear. According to ResearchandMarkets, the general merchandise market saw a decline from $1,843.6 billion in 2019 to $1,810 billion in 2020 at a compound annual growth rate (CAGR) of -1.9 percent. The decline is mainly due to economic hardships from the pandemic.

With the economy starting to revamp in 2021, we have seen great opportunities for smaller brands that took the time to grow their audience in the past year, to offer new and exciting merch. This is in part due to the fact that most consumer sales are being driven by the ability to connect with ones core values.


What are your

Brands’ Values?

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According to Faire’s survey data, the most purchased brand value tags were Women Owned, Made in the USA, and Handmade. Consumer purchasing patterns have become more about how they value a brand rather than the actual product itself. Most retailers shopped by brand value in order to find products that resonated with their customers.

Check Out Core Brand Values Examples: Why They Are Key to Differentiating Your Brand

A brand mission statement is important to clearly communicate the brand's purpose, objectives and how it plans to serve its audience. A clear mission allows the consumer to see their own values in your brand and make more on emotional connection. This builds brand loyalty and brand pride.


Trends By Categories

More and more businesses are shifting to remote work and this has opened up the potential to offer a variety of merch that otherwise would not be suitable for certain brands before the pandemic. It is important to do your research and find your audience to then gear your promotional products or branded merch towards their specific interests.

Read about How The Pandemic Changed The Way People Shop

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Pet Merch

As the pandemic begin extending in 2020, more and more people began adopting pets to help them cope with worldwide lockdowns. With pet adoptions on the rise, pet merch saw an increase of 1 Billion dollars annually.

According to the 2021-2022 APPA National Pet Owners Survey, 70% of U.S. households own a pet, which equates to 90.5 millions homes. This is a market that is worth looking at if you are thinking of dropping merch. Pet people love to buy toys and clothing for their dogs.

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Apparel

Big clothing brands such as H&M and Zara saw a sharp decline in sales at the begging of 2020 but quickly bounced back better than ever in 2021. Despite the losses in 2020, apparel and accessories sales in the United States are expected to reach $495 Billion in 2023.

Athleisure and activewear brands suffered less of a sales decline in 2020 compared to other apparel categories, decreasing by just 2-3% vs 2019. Consumer interest in health and wellness will continue beyond the pandemic, so demand for athleisure and activewear is expected to be strong in 2021.

Although screen printing on athletic clothing can be challenging, there are ways to work around this and get the perfect print for your athletic merch.

Check Out Apparel Ecommerce Market Size in the US from 2016 to 2021

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Health & Wellness

Wellness products saw a 10% increase in sales during 2020 and is predicted to increase an additional 15% in 2021 with a big push toward the end of the year. Wellness items have been on the rise for a few years now but it is predicted to hit all-time highs in 2021.

As global consumers are beginning to focus more on their wellness, products such as yoga mats and candles are among the highest sold items. These are products that can easily be manufactured and printed with your logo, they make great promotional merch!

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Tech Gadgets & Accessories

Gadget such as wireless phone charges, wireless headphones, and speakers have been on top of the tech chain when it comes to consumerism. In 2021, it is projected that most people will opt for wireless EVERYTHING.

Charger pads can be a great promotional product to display your company logo or brand name. Brand artwork can be laser printed unto these types of surfaces, making it easy, fast, and affordable.


The New Normal

Brands and retailers will need to consider how consumer behavior has changed during the COVID-19 pandemic. Many consumers invested time and money in purchasing and learning to use equipment to facilitate fitness, cooking, working, and entertaining from home.

This means that many of the industries that thrived in 2020 could remain elevated above pre-pandemic levels, and at the same time, industries that struggled last year may find their industries have been changed permanently.

Increased remote work may lead to more travel and mobility, and business travel may ramp up, benefiting accessories like luggage and backpacks. The casualization trend that took hold in apparel and footwear last year is likely to remain.

Author: Irene Floridia - Content Creator


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Covid-19 Continues To Disrupt Supply Chains

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The consequences of the pandemic when it comes to supply and manufacturing have been long lasting and it may be a while before we can see the light at the end of the tunnel. With the delays in transit times, shortages, low employment and more, many of us have had to practice patience or look for alternatives to continue business as usual. We’ll go through all the shortages that many of us are facing and give you a inside look into how it is affecting Los Angeles print shops like ours.


The Domino Effect

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In early 2021 as covid restrictions began lifting, we started to notice the biggest change in supply and demand. People’s spending habits not only shifted back to normal but in the case of eCommerce the changes show an astonishing increase in sales, which created more demand as the supply was running out.

More notably, we are seeing this play out with restaurants who are not only having a hard time hiring and retaining employees but are also experiencing a shortage in supply and slow shipping.

Read US consumer sentiment and behaviors during the coronavirus crisis

Rising Costs

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With low inventory and manufacturing issues coupled with inflation many industries are raising manufacturing costs. You may be seeing this most notably with the price of food at your local supermarket.

For print shops across the US, costs have increased and we believe they will increase more as shortages continue. As an apparel business, you may be faced with the tough decision to either raise your prices or look for alternative styles that match your previous COG.


How is The Shortages Affecting Apparel?

According to Forbe’s consumer report on apparel, the industry welcomes the rise in prices but remains tenuous. For a business like a print shop that offers t-shirts and hats, the story is a bit different. As a print shop and fulfillment business, we are in a tough position, however, we strive to work with our clients on finding solutions and weathering the storm.

Where do the shortages start?

The supply of garments are mostly imported from countries such as China, India, Pakistan and Bangladesh; where the Covid-19 restrictions are tougher and employers are forced to minimize their work force to avoid further spread of the virus.

Data from 2020

Data from 2020

Besides the delays in manufacturing, we found that the primary reason for the shortages is delays in shipping. Because materials such as cotton is grown in one country and processed in another as well as the actual creation of the garment and then shipped to you (or us) for printing. The various stage of making apparel coupled with slow transit times are causing much of the shortages.

Furthermore, because of the increase in demand across the board, countries like China are having a hard time keeping up with the shipping due to delays of cargo containers. In 2020 containers were not being shipped back at the same rate they were arriving to our US ports, this has created a bottleneck effect and is contributing to delays.

In addition to delays, the cost of shipping containers has increased from $1,500 in early 2020 to now in 2021 at almost $9,000 per 40ft container. This is yet another reason why costs have gone up.

Read more about Why The Pandemic Has Disrupted Supply Chains

Unable To Meet Demand

During the early months into the pandemic, online shopping grew 32.4% and has overall helped the eCommerce sector for most industries including small independent apparel brands. Young people are moving away from traditional fast fashion retail stores and seeking unknown and more exclusive apparel brands.

Source: Digital Commerce 360 analysis of U.S. Department of Commerce data

Source: Digital Commerce 360 analysis of U.S. Department of Commerce data

Due to high demand, we recommend to make a plan and order your apparel NOW while styles are still in stock or pre-order apparels in anticipation of further shortages.


Conclusion

DON’T WAIT - Order what you need now or in advance to minimize wait times and secure inventory.

FIND ALTERNATIVES - Should specific garments not be available, talk with your screen printer or supplier to find the best alternative for what you are looking for. This issue may persist well into the following year, so finding an alternative could be your best bet.

RAISE YOUR PRICES - With inflation on the rise and the obvious increase in cost, it is a good idea to begin raising your prices incrementally and in anticipation for overall costs increasing.

Author: Irene Floridia - Content Creator


Follow us on Instagram and Facebook!

For FAQ, check out our site!

For any inquiries, send us a message!

OR

send us an e-mail at quotes@familyindustriesla.com