Fandom merchandise is basically a way in for people, into the world of their favourite books and/or Television shows and/or Movies, and/or Games, etc. The items act as collectibles and people love to amass a number of them to adorn their personal lives. Now for startups trying to enter into this field, the high profits that are associated with this sector can seem very alluring.
In fact if they do manage to continue for a few years they might become very profitable. So let’s delve deeper into the industry .
|Benefits of Fandom Merchandise based Startup||Drawbacks of Fandom Merchandise based Startup|
|Optimisation of the business leads to maximising sales and thus the gross profit||It is a very demanding job for the staff which means hiring more people and/or higher salaries|
|Inducing reliability in the customers forms a strong customer base||Failing to meet their own standards even once can severely deplete the customer base|
|The demand for the products will almost always be present||High costs can be expected to get the business off the ground and continuing it|
|The visual appeal of the merchandise is likely to draw more people in||It takes a considerable amount of time to be successful and profitable in this business|
|The aesthetic quality of all the items will set the startup apart from all others||It is a business venture that will demand your constant undivided attention for as long as it continues|
|High prices can be set on the specialty items and they will still sell|
|Items can be personalised on demand and this leads to more sales at high prices|
|The connection between the merchandise and fandom is very strong|
Advantages of Fandom Merchandise based Startup
- Optimisation :
Fandom merchandising, if it can be optimised, contributes towards optimisation of marketing and sales and thus leads to maximising the gross profit of the startup. The startups have to find the right balance between the suitable amount of products to acquire and the price and time at which they are acquired.
- Customer Loyalty :
Dealing in fandom merchandise means being constantly aware of the rise and consequent fall in demand for any kind of merchandise. Provision of good value entices customers. Fresh new products that are displayed attractively makes customers return more frequently creating a strong customer base that can propel the growth of the startup exponentially.
- Demand :
The demand for fandom merchandise will always be there. People are always going to be fans of something and they will always want their merchandise. The demand may shift from one entity to another, but along with that a new fan base for this new entity will emerge with it. So the startups will always have a decent amount of potential customers.
- Visual Appeal :
Even if fans are unaware of a retail shop of the merchandise, the brightly coloured signages, posters, etc. that display the merchandise they revere, will attract their attention and they will want to give the store a go. Even the general passerby might be attracted by the fandom merchandise that are put on display.
- Uniqueness :
The retail shops, trucks, etc. of the startups will be filled with designs, paint, objects, etc., completely different from what you generally see. For example the retail store may have cushions with the face of a popular cartoon character printed on it. These will set the startup apart and make a strong impression in the minds of potential customers.
- Pricing :
The startups get to maintain relatively high price points on their fandom merchandise and still earn a decent amount of profit. Fans tend to let their emotions get in the way while buying any kind of such merchandise as it relates to something they love and so are almost always ready to spend that extra money.
- Personalisation :
The advancements in technology means that a lot of the startups are able to offer their customers fandom merchandise that are tailored specifically to their demands. This highly increases their popularity among the fans as it gives them a feeling of being a part of something they love. Startups can also charge a high amount for such tailor-made merchandise.
- Connection :
The merchandise is inextricably linked with fandom. For example, often it so happens that fans will wait with bated breath for the fandom merchandise, to acquire it before the next season of their favourite series is released. The merchandise gives fans a tangible connection with what they adore and this makes them more willing to buy the merchandise.
Disadvantages of Fandom Merchandise based Startup
- Demand on Staff :
The increase in sales generally leads to an increase in the customer service. So this leads to a lot more issues with delivery and thus more number of people to handle these issues and/or considerably longer work hours. Owing to longer hours and increased workload, larger payrolls need to be offered that might be hard for startups.
- Continuity :
In order for the startup to be successful in fandom merchandise they have to constantly meet the expectations of their customers so as to keep them coming back and creating new ones. Once they have set the standard, not living up to it, their sales will get negatively affected leading to a shrink in the customer base.
- Cost :
The cost of putting in customised fixtures, installing new signages and improving on the complete appearance of the retail spaces can quickly amount to large expenditures on the part of the startups. Even though high returns can be expected, they take time and a lot of effort which is not easy for startups as they lack huge funds.
- Time :
In order to gain the large rewards on offer in this sector, the business needs to be at it for a long time. The larger companies with their heavy financial backing, strong customer bases and reliable business credit can afford to grind on. But the startups with their limited resources might burn out even before becoming profitable.
- Perpetuity :
Fandom merchandise is an arguably never ending business venture. The startups need to review their goals every step of the way. Any kind of miscalculation in forecast, prices, marketing, etc. can prove to be detrimental for the business in the long run. Constant attention is required to manage the merchandise, taking precious time away from other work.
As it clearly visible, the startups can expect a lot of hiccups along the way if they decide to venture into this industry. However one cannot deny that they can become a household name, with loyal customers if they can maintain a high standard. It is simply important to weigh out all of the options, through thorough research before jumping in.