E-Sports Merchandising Trends Expand Revenue Generation

The esports industry is expanding its revenue generation models through effective merchandising strategies and trends.

FREMONT, CA: As mobile usage increases in emerging countries, esports become more popular, and video games become more popular, the market will grow rapidly.

Games that align with the dynamic entertainment industry must provide consumers with high-quality, interactive content. Online streamers and small and big-budget game developers will benefit from the alignment of entertainment and gaming. A substantial increase in audience size and increased investment from commercial partners have led to revenue growth in esports. With the development of new league formats and associations, the industry has become more structured. Esports will experience strong growth in the coming year due to partnerships, acquisitions, and mergers.

The esports industry experiences the following trends.

Increase in revenue generation through merchandise: Getting the product into mainstream retail is the key to a successful merchandise program. Currently, esports face revenue challenges. Retailers take a margin, resulting in lower per-unit profits. Since retailers can sell enormous amounts of merchandise, fewer merchandise returns can lead to higher revenue. Esports brands get greater exposure for their sponsors when their merchandise is affordable enough for retailers to buy. This leads to increased engagement and higher pay for companies.

Effective revenue generation depends on how companies approach the commercial world and how they want to use all the tools it offers. A successful sponsorship, merchandise, or commercially-driven campaign will generate a more sustainable revenue stream. Gaming companies must find the right business model and marketing skills to optimize their revenue streams.

Centralized retail: It is common for customers to purchase esports products from individual teams or publishers, but the esports industry is consolidating merchandising to create a more comprehensive retail platform where customers can find numerous esports products in a single retail space.

Sustainability: The esports industry is upgrading its merchandising approach by focusing on sustainable and ethical production. There are many challenges to implementing purely environmentally conscious production methods, including availability and quality. Incorporating recycling practices is challenging as recycled materials for merchandise often need higher quality. Brands advance towards sustainability incrementally to meet customer satisfaction and accommodate environmentally friendly practices.