Note: This post was originally published by Brendan Menapace/Advertising Specialty Institute and is shared here with permission.

The South by Southwest festival in Austin is sort of a catch-all for what’s cool right now. You’re seeing the next big things in music, movies, tech and more. So, of course, merchandise plays a big part. And when the point of a festival is to show off what’s cool, it stands to reason that the merchandise is a good indicator of what modern tastemakers are looking for, right?

We’re not on the ground in Austin, but we can still check out what the merchandise game looks like for some key takeaways for distributors selling products across any product category or end-buyer vertical.

Quality Over Quantity

Some promo campaigns have adopted the “streetwear drop” model, where a very limited quantity of items is released in batches – or drops. This incentivizes end-users to act fast lest they miss out. It also allows for smaller quantities in the order and smaller assortments of items. Think specialization at a restaurant rather than a gigantic menu of all sorts of food imaginable. (Looking at you, Cheesecake Factory.)

When you create a scarcity model, you drive demand. People love hearing that something is available for “a limited time only.”

This year, SXSW is once again taking that idea and combining it with the millennial-approved food truck model to bring back its SXSW Merch Truck– which is a promotional product in its own right.

The truck is going around Austin selling exclusive truck-only promos as well as selling wristbands for SXSW showcases.

The idea of investing in quality is also backed up by the festival’s official merchandise partnership.

SXSW teamed up with New Zealand merchandise provider AS Colour, which bills itself as an elevated supplier of blank apparel. This creates a brand story that end-users can latch onto and feel like they’re getting something more thoughtfully manufactured. By putting AS Colour front and center, it borrows the brand’s reputation and shows that the merchandise is more than simply a corporate giveaway with items from some unnamed supplier whose manufacturing practices could be opaque at best, and unethical at worst.

Current Headwear Trends Remain

The trucker hat made its comeback over the last half-decade, and the rope hat is emerging as the retro cap design du jour. This was backed up by recent Super Bowl merchandise. SXSW’s headwear collection includes both truckers and rope caps, as well as previous headwear trend-setters like snapbacks and worn-in “dad caps.”

In terms of decoration, there are embroidered caps, patches and small labels on items like beanies, which opt for relatively minimalist branding on the cuff of the fisherman-style beanie.

The T-Shirt Ain’t Broke

Concert merchandise used to be pretty much limited to the T-shirt. While there are other apparel pieces available at SXSW this year, the T-shirt is the undeniable focal point.

The merchandise store has 15 designs posted, mostly using earthy neutral tones with a few pink and blue pops of color. Common design motifs are cowboy aesthetic to match the Texan backdrop, tape decks to harken back to the “good old days” of music for an audience increasingly unaware of the cassette and tacos for one of Austin’s most beloved grab-and-go food choices.

Print Still Has a Place

Yes, the vehicle wrap for the merchandise truck could be seen as a print product. But in terms of traditional print that festival-goers will leave with, the poster is the clear choice.

Each year, SXSW debuts a special poster representing the music, film and comedy shows.

Once again, though, the festival is using exclusivity to drive sales. The poster, designed by artist Taylor Rushing of Not Bad Illustration, is limited to only 350 silk-screened posters.

The festival also said that each attendee will also receive a limited-edition canvas tote with Rushing’s artwork when they pick up their badges. They’ll need it for carrying around all the merch (and tacos) they get at the festival.

Research provided by the Advertising Specialty Institute, ©2021, All Rights Reserved.