Shopify's Impact Is A Teachable Moment for Distributors

By Brendan Menapace

The internet and direct-to-consumer companies make the promotional landscape different. In some cases, it makes it difficult for distributors to compete with companies that allow end-users to buy directly with low minimums.

There are lessons to learn from these companies, though, like Shopify, which has partnered with big-name musical acts like Drake and Taylor Swift for promotional campaigns that require fan interaction.

Recently, Drake and Shopify put together a program where QR codes would be projected around cities where he was performing, and fans could scan them to access limited-edition merchandise on Shopify's Shop app.

@Drake Gives attendees from his LA concert FREE Nocta Hot Step Air Terras from scanning QR CODE 👨🏽‍🍳👁️🦇 pic.twitter.com/tEytu38hPG

— D.A.K. (@dadeasskickz) September 1, 2023

Social media personality MrBeast also worked with Shopify for a scavenger hunt in New York City, where fans could win prizes and sample his new chocolate line, Feastables.

Forbes highlighted these two examples as "new challenges for traditional retailers," i.e. taking the shopping experience out of the store and onto the streets, focusing instead on experiences and challenges that engage with the consumer elsewhere. It essentially brings the brand wherever they want it, rather than bringing people to the brand in the traditional sense.

Shopify president Harley Finkelstein told Forbes that the platform evolved to the point where it "ideally positions us at the epicenter of the future of commerce, unleashing new ways for merchants to engage and drive authentic connections with their customers."

Think about that for a second, and you might see that this "challenge" that the likes of Shopify present the promotional products space is actually an opportunity for education, as long as distributors are willing to pivot their approach a little and give their clients the chance to think outside of the box.

The same way that musicians' merchandise tables have gone from solely being at the concert venue, through integration with apps as well as curated experiences, every brand can turn the world into a promotional event.

We wrote last month about the phenomenon of "Funflation," and how younger generations whose teen and early adult years were marked by COVID lockdowns are now making a point to prioritize exploration and travel. That doesn't mean just traveling to remote locations for vacation. It means they're also looking for things they can do outside of their houses to connect with the world around them after relying on Zoom meetings and online gaming.

So, the same way that musicians have answered the call to meet their fans where they are by creating merchandise platforms to sell products in spaces other than concerts, promotional campaigns should also bring the brand to wherever their clients live, work, play, eat, whatever.

In the past, a promotional product was the reward for showing up to a conference or event. And, a lot of times, those products can be forgotten and trashed. In today's world where environmentalism is so important to consumers, products need to have something that makes the end-user want to hold onto them. If you can make a product feel like it was something they earned, then the end-user is more likely to hold onto it than they would if it was just a prize for showing up.

Turn each promotional opportunity into a challenge. Make every product a reward for more than just being a warm body. Take the brand outside of its usual location and integrate it into the world in new, exciting, and creative ways.

You don't have to be Drake or Taylor Swift to engage with an audience. You just have to have the initiative.