We used to think of merch as just another advertising channel. A logo on a mug works a bit like one on a banner, except it lasts longer and travels with the person who owns it. In that sense, merch is still part of the marketing mix. But merch has also become part of employee experience and employer brand.

Today, merch is a tool for engagement and retention, not just for customers, but for your own team. A recent survey found that 94% of employees who get merch every month are happy with their employer, and 93% said their favorite branded item would make them more likely to stay another year. According to another report, employees who received company merch stayed, on average, a year and a half longer than those who didn't. So merch works because the item becomes a small, physical reminder that you're seen, you're valued, and you're part of the team.

7 merch trends to watch

We looked at the latest industry trend reports and found some interesting patterns, then checked how they line up with our own ideas about merch production. Take a look at what we found:

1. Good quality over large quantity

The days of cheap giveaways are over, in the merch industry, premium brands replace generic items. People want items that actually last and that they'd be genuinely happy to receive.

2. A muted, calm colour palette

Bright, loud colours are giving way to quieter, deeper tones, more greys and black. These shades are easier to use every day, and they simply age better than anything trendy or neon.

3. Sport and outdoor items

The growing trend toward wellness and an active lifestyle is changing what merch looks like too. Sport-inspired items now also serve as part of team building and company events.

4. A whole collection, not random pieces

Trend researchers say the best merch today isn't a pile of unrelated branded items, but a set that's clearly designed together, with the same palette and the same feel.

5. A break from screens

In a digital age, tactile, physical items feel more valuable than ever. A well-made notebook or a pen that glides across the page gives people a sense of the real, away from the screen.

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6. No big logo

A loud logo across the whole item is starting to feel outdated, people don't want to feel like a walking billboard. A small mark, a subtle tag, a detail in the stitching is enough.

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7. Functionality

Merch works best when it's something people actually use, not something that sits in a drawer. Sometimes the most functional gift is one that lets people choose for themselves.

Merch at Smart State

When we build our own merch, we follow the same logic we've seen in the best examples out there: modern materials, original design, branding that doesn't shout. We want to produce high-quality, branded items that people actually reach for every day.For every item we chose to add to our merch set, we asked ourselves: would we buy this ourselves, would we want to have it? We also asked our employees what they're interested in, which brands they prefer, and what they need for work. We didn't want just a surface for a logo, we focused on what would actually be useful for our colleagues and bring them value and joy.

For example, some of our people were already planning to buy a comfortable and functional MOUS backpack for work. We also found out that not everyone on our team has headphones, so we added them to the merch set, and we chose AirPods Pro for this — a product people are willing to buy for themselves. The same goes for the YETI mug, one of the most recognizable and desired items in this category; it was on colleagues’ wish lists.

We also took our employees' preferences regarding customization of items into account. For example, we made the notebook's ruling dotted, because that's the format our colleagues prefer.

As for design, we aimed to make things people like wearing because they look modern and stylish, not because they're branded. Moreover, we believe that our merch can carry a brand's core message without a big logo. An excellent example that inspired us is the Knicks/Rangers collaboration with the New York or Nowhere brand. Items from this line are bought not only by fans of the teams, but also by other people who choose them because they are fashionable and beautiful. So, we see that merch turns a customer or an employee into a brand ambassador, someone who shares the company's values and mission and feels part of a like-minded community.