Shelf Life | Vol. 9: Merch Multiverse - Brought to you by the Letters I and P

🗓️ May 2025 | ✍️ By Jackie Swanson

Streaming might build fandoms... but merchandise builds fortunes.

The recent Sesame Street x Netflix deal isn’t just a content play. It’s a merchandising masterstroke. In today’s ROI-driven economy, success isn’t defined by views, it’s defined by what ends up in your cart: plushies, partyware, mini figures, fleece blankets. That’s where the money is.

But the new world of hyper-merchandised IP is facing a triple threat: piracy, POD, and platform disintermediation.

Let’s explore what’s really changing...

Can You Tell Me How to Get to... Checkout?

From Barbie to Bluey, and now Labubu, the power of character IP has never been stronger.

The Labubu doll phenomenon, fueled by TikTok hauls and drop culture, shows just how quickly niche characters can become global merchandising giants. Sesame Street’s new Netflix deal confirms what many of us suspected: for entertainment brands, merchandising rights are now more valuable than media distribution.

We’re entering an age where some IP may be created not for storylines, but for shelf appeal.

It's a Beautiful Day for Brand Control

Counterfeiters have evolved—and TikTok is their new storefront.

While Etsy cracks down on unlicensed “inspired by” goods, counterfeit sellers have gone DTC. Recent TikTok videos show Chinese factory reps offering fake designer goods directly to U.S. consumers—no platform, no middleman, no remorse.

📊 According to Gartner: “Brands must accelerate digital product authentication and AI-powered enforcement, or risk losing control of their IP at scale.”

The threat isn’t theoretical. When the same factories producing your licensed merch are also running unauthorized after-hours batches, the risk is embedded in the system.

Mighty Morphin' Merchandisers

Print-on-demand isn’t the future of supply chains, but it’s forcing retailers to rethink their present.

AI-generated designs, personalization engines, and trend-based drops are giving rise to real-time merchandising tied to micro-moments. And while POD comes with higher costs and scaling limitations, it introduces serious disruption:

✨ AI-assisted design + content creation ⚡ Design-to-door speed in days 📦 Zero inventory holding costs 🎯 Merch built for niche or viral demand

🧠 Gartner notes: “Retailers should explore on-demand manufacturing to support hyper-local or trend-sensitive categories where agility outweighs scale.”

It’s not about replacing traditional supply chains—but understanding that agility now outweighs forecasting in many categories.

Copycat!

What happens when factories start skipping the brands altogether?

Some manufacturers are already testing DTC models, producing trend-driven merch using TikTok data, generative design, and no licensing. Why wait for a brand’s seasonal line review when a knockoff can be live on Temu in 72 hours?

The retail supply chain is decentralizing—and IP enforcement needs to get just as fast.

Princess Has More Power!

Licensing used to be about five-year master agreements. Now it’s about fast, flexible, digital-first collabs.

Here’s what’s next:

🪪 Micro-licensing for creators and influencer brands 🤖 Generative AI-built characters made for merchandising 👕 “Born-to-be-merch” IP that lives on shirts before it ever hits screens

Welcome to the creator economy meets consumer goods.

You Don’t Have to Take My Word for It...

Smart brands aren’t waiting to react. They’re investing now in:

🛡 AI-powered enforcement tools that detect fakes in real time 🧪 Trusted POD partners for test-and-learn merchandise drops 🔗 Blockchain authentication for high-value IP 🔄 Cross-functional loops between trend monitoring, design, and sourcing

📈 Gartner continues to advise clients to build flexible merchandising strategies that are: “ready for rapid design cycles, viral demand, and diversified sourcing.”

💬 Your Turn:

How should retailers evolve their IP strategy in the age of TikTok and AI?

👇 Let’s discuss: Control vs. Collaboration

More to come in the Shelf Life series. Follow me here for sharp takes on the trends shaping retail, fashion, and consumer product companies. Want to talk more about how Gartner Consulting can help your organization? Subscribe to Shelf Life on LinkedIn, Follow me @ShelfLifebyJKS on Instagram or reach out!

📍 Jackie Swanson is a Managing Partner at Gartner Consulting, specializing in retail, consumer products, and utilities. She advises companies on large-scale transformations spanning strategy, operations, and technology. Jackie lives in New York with her husband and their three children.

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