Is Millionaire Speedy a luxury bag or merch? What about the Balenciaga Maxi Pack?

The term “merch” originally referred to items made for music fans, where items like t-shirts were sold on a band’s and musician’s tour. From music, merch spread to sports, film, gaming, art, fashion, design, travel, and entertainment. Merch’s original value has never been in the physical item itself–after all, a band shirt is just a tshirt, but in the social and cultural capital associated with it. Partly this stemmed from the fact that originally one could buy merch at concerts, thus signaling true allegiance to a cultural artifact. Thus, unintentionally, merch also operated on the concept of scarcity.

This social and cultural capital made merch the opposite of a commodity. Commodities are interchangeable (who can tell the difference between a Polo and a Tommy Hilfiger shirt if it wasn’t for the logo?); merch was a unique expression of a specific time, place, community, and context. First streetwear brands, often run by music enthusiasts in the pre-e-ecommerce age, also operated on the same principle.

The nature of merch changed as merch became commoditized in the early 1990s by Hot Topic, a chain store that gave access to band t-shirts to teenage mall rats. At the same time as streetwear became more important, it also turned merch into a commodity, which became even more ubiquitous with the rise of e-commerce. These developments removed the necessary friction that made merch a valuable cultural symbol. In the past, a person wearing a Nirvana t-shirt was probably a fan of the band’s music, today no such guarantee exists (and many more shirts are sold). This often precludes one of the original purposes of merch, a signaling of belonging to a certain subculture.

Still, the meaning of merch has not disappeared, but merely shifted. A person wearing a logoed Balenciaga tee is also signaling some kind of meaning, as is the person wearing one with the logo of A24, the trendy film production company or H&M’s infamous “Dimes Square” tshirt. The need for signaling through one’s possessions has not gone away, but, in the world of social media, increased.

Recently, we’ve heard:

Merch is a status symbol.

Merch is a subgenre.

Merch is a style statement.

Merch is an identity marker.

Merch is past its peak.

But all those takes miss the reality that merch has become big business.

What used to live on the edges of culture has moved to the center of the retail economy. The side show has become the main act.

In this episode, we explore what happens when consumers learn to buy everything as merch — and why the future of merch is niche, secret and indecipherable to the mainstream.

Listen to our conversation above, or on iTunes, Spotify or YouTube.

Get full access to The Sociology of Business at andjelicaaa.substack.com/subscribe

What is next for merch?

Hitmakers, Season 2