New data reveals why branded merch matters

6 minutes
A collage of promotional merchandise including a totebag, keyring, pens, t-shirts, mugs, hats and stickers.

If your small business has ever printed a logo on a T-shirt, ordered custom mugs, or kitted your team out in uniforms, you’re not just marketing – you’re sending a message: we’ve made it. In fact, 69% of Australian small business owners told us they see branded merchandise as a sign they’ve officially arrived.

From cafe aprons and tradie uniforms to branded bottles for giveaways; merch and apparel is fast becoming a staple in business and a visible symbol of professionalism, confidence, and community connection.

Merch as a milestone

Australia’s home to 2.7 million small and medium-sized businesses, bringing in about $590 billion for the economy and employing over 5 million people. But behind those big numbers is something more personal – that moment when a business owner spots their name or logo on a pen, a hat, or a tote bag and thinks, wow, we actually did it.  74% of SMBs interviewed said merch helped them feel like a real business, 39% said it strengthened brand identity and 33% said it boosts team pride.

“For many entrepreneurs, branded items act as tangible proof that their venture has evolved from startup to established business,” says Marcus Marchant, CEO of VistaPrint Australia. “This represents the moment SMB owners feel they’ve truly arrived, not just a promotional or branding nice-to-have.”

It’s a sentiment echoed by Joel, owner of Squirtz Plumbing: “When I first started, it was just me and a van. The day we designed our own branded uniforms and caps was the day I felt like I had really made it. It unified the team, helped customers recognise us, and made the business feel professional and established.”

From tees to totes: How small businesses are using merch

Branded merch isn’t just for big companies anymore. In fact, 62% of Australian small businesses have already created their own branded merchandise or apparel — and it’s becoming a core part of how they show up in the world. The most popular items? You’ve probably seen (or worn) them: T-shirts top the list at 55%, followed by hats and caps (37%), pens (35%), mugs (29%), and uniforms or aprons (26%). Then come the fan favourites – stickers, totes, notebooks, water bottles, and keychains – proving that even small items can make a big impression.

But merch also isn’t just about slapping a logo on stuff. For small business owners, these products are a way to tell their story, connect with customers, and build something bigger than a brand – a sense of identity. According to small business owners, these items go well beyond promotion. They’re powerful tools for building recognition, loyalty, and community.

The top reported benefits say it all:

  • Strengthened brand identity (39%)
  • Boosted team pride (33%)
  • Increased ability to stand out from competitors (32%)
  • Sparked word-of-mouth and customer conversations (29%)
  • Increased customer trust (26%)
  • Helped win new customers (26%)

In other words, the right merch isn’t just memorable, it’s meaningful. It turns your business into something people can see, wear, and share.

Looking the part and opportunities for growth

In a world where first impressions matter more than ever, small businesses know that looking polished can make a big difference. In fact, 80% of Australian SMBs say that having branded uniforms or merchandise makes a business look more professional, and one in five believe it makes them look extremely professional. In a crowded, competitive market, even the smallest visual details can make a big difference.

As one business owner put it:

“It shows the business is professional, proud of its brand, cares about customers, and knows how to promote itself.”

Another echoed that sentiment, pointing out how merch becomes part of everyday life:

“It’s a deliberate choice to embed the brand into daily life: a customer using a branded mug at home, an employee wearing a branded hoodie — all turn ordinary moments into opportunities for connection.”

So, it’s not just about looking good, but about creating a consistent brand presence, sparking recognition, and showing customers you’re the real deal. And yet, despite all these clear benefits, more than half (55%) of Australian small businesses still aren’t actively using branded merchandise.

The good news? That’s starting to change. Interest is growing, with 24% of SMBs considering branded merch, and 64% saying they’d be more likely to invest if the design process were simpler.

So what’s getting in the way? For nearly half (47%) of SMBs, cost is the biggest barrier. But it’s not the only one. Some business owners say they just don’t have the time to think about merch (17%), while others are unsure about the return on investment (13%). There’s also hesitation around where to start – with 12% pointing to the difficulty of choosing the right supplier or platform.

How to choose the right merch for your business

Choosing the right merch can feel overwhelming with so many options available, but it all comes down to understanding your business and your audience. By focusing on your goals, audience preferences and budget, you can create merchandise that truly resonates and delivers results. These are the key factors to consider when selecting the perfect merch for your brand.

Understand your audience

Your customers are at the heart of your business, so tailoring your merch to their preferences is key. Think about what they use daily and what aligns with their lifestyle.

For example, a younger, tech-savvy audience appreciates USB drives or phone accessories, while a more eco-conscious group prefers reusable drinkware or tote bags. If your audience is professional, consider office supplies like notebooks or pens that align with their day-to-day activities.

The better you know your audience, the more likely your merch will be to make an impact and encourage them to engage with your brand.

Match merch to your brand identity

Your merch should be an extension of your brand. Think about your company’s personality, values and aesthetic when choosing products and designing them. For example, if your brand identity is all about creativity, go for vibrant, artistic designs. If you’re focused on sustainability, choose eco-friendly items like reusable water bottles or bamboo pens.

It’s also helpful to consider seasonal or trending items. Branded umbrellas might be perfect for a rainy season, while insulated drinkware is great for the colder months. Matching your merch to your brand and current trends helps it to feel relevant and cohesive.

Consider budget and scale

Merch can be a great investment, but it’s smart to start small and stay within your budget. Go for affordable, high-impact items like branded pens or tote bags – they’re easy to produce and still make a strong impression. See how your audience responds before moving on to bigger-ticket items like tech accessories.

As your business grows, you can start to explore a wider range of merch and invest in higher-quality pieces. Just keep in mind: quality matters. If something looks cheap or falls apart quickly, it can reflect poorly on your brand. But well-made, thoughtful items? Those leave a lasting, positive impression.