Top 5 Reasons to NOT do a Company Store

Company merch stores seem like a win-win. Employees get cool branded gear, the company fosters a sense of pride, and maybe even a little extra brand awareness seeps out into the world. But before you jump on the bandwagon and invest in a custom online portal, consider these five reasons why a company swag store might not be the best fit for your organization.

1. Love for the Logo Might Not Translate to Love for Paying

Let's be honest, leadership often overestimates employee enthusiasm for company logos plastered on everything from t-shirts to water bottles. While some employees genuinely love repping their company colors, many would prefer a free gift over paying for something they might not wear or use regularly.

2. Free Swag is the Real Draw

The truth is, most employee requests for branded merchandise come with the unspoken expectation of it being free. A company swag store flips that script, often asking employees to spend their own money. This disconnect between perception and reality can lead to a disappointing store launch and minimal employee participation.

We had a large telecom customer one time request an online apparel store for their sales team because the leader was asked on a weekly basis for polo shirts and other embroidered apparel. After some discussion we decided we would help by putting up a very affordable option to at least make leadership happy that they could offer something when the requests came in. Over 1 year one person ordered one apparel piece from that store and it was eventually turned off. Lesson there was that the people were asking this leader because they thought he would be able to just give them a new shirt from his “swag closet.”

3. Constant Promotion is Key, But Not Guaranteed Success

Building a successful company swag store isn't a "set it and forget it" proposition. Consistent communication is crucial to keep the store top-of-mind for both internal and external users. This means regular email blasts, social media posts, and even internal contests to drive traffic and generate sales. But remember, even with consistent promotion, success isn't guaranteed.

4. Costs Can Add Up

Setting up and maintaining a company swag store can be expensive. There are platform fees, minimum order quantities for some items, and potential fulfillment costs. There are more affordable options that Ideation Creative Brand Management can offer but there is still a cost to setting any kind of store up successfully.

5. Someone Still Needs to Be the Swag Champion

Even with a great partner like Ideation managing the backend logistics, someone within your company will still need to oversee the store. This includes tasks like product selection, setting pricing structures if people are purchasing the items, promoting the site to users, and fielding questions with internal stakeholders like Marketing and Human Resources. This ongoing responsibility should be factored into your decision.

So, What Can You Do Instead?

While a company swag store might not be the best solution for everyone, there are other ways to achieve your branding and employee engagement goals.

• Strategic Swag Giveaways: Plan targeted giveaways of quality, useful items for employee milestones, team achievements, or company events. This creates a sense of exclusivity and reward, fostering a more positive association with the brand. Same can be done for external customers as well.
• Pop-Up Shops: Create a similar user experience but with a targeted Pop-Up Shop that allows people to purchase swag or participate in a giveaway of swag but without all of the expenses associated with a long-term company store.

Ideation Creative Brand Management can help you determine if a company merch store is right for your business. Not all solutions are right for all businesses so reach out to our team to talk about your budget, goals and culture to determine what is right for you.

Want more information? Check out our webinar with more information on Company Stores and Warehousing.