The Power of Merchandising: Here’s How Stellantis Makes Money on Gadgets

Stellantis and other automotive brands don’t just sell cars. With their branding printed on T-shirts, models, hats, and even soap with their logo engraved on it, they generate more than $1 billion a year in merchandise sales.

Stellantis and Ford: Over 1 Billion from Merchandising

Products from Stellantis and the Ford logo are very popular; we are talking about commodity such as models, soap, and even classic T-shirts. While they may seem like poorly engraved products, they still generate over a billion dollars a year for the automotive group. This is a great economic start for all car manufacturers who have discovered the enormous power of merchandising.

The most striking example is certainly Ford Bronco Bricc Soap. 40,000 units of this product were sold in just three days at $8 each. But Ford is not the only one taking advantage of the great opportunity that this market offers.

Stellantis AND General Motors also ride the wave of success with their own branded products, such as caps, T-shirts, basketballs, and even model cars for children. For example, the Jeep brand had the bright idea to introduce a line of work boots under the Merrell brand. In addition, they also introduced a collection with Warren Lotas which sold out within minutes of being made available to the public.

Another example is Dodgewho instead teamed up with Lego bricks create Charger and Challenger construction sets for children.

Kim Adams HouseStellantis’ global licensing and merchandising director said the licensing program used in merchandising has grown by more than 100 percent compared to 2017. One of the most successful markets for Jeep brand is Asia. In fact, there are several completely independent Jeep stores on the Eastern continent that sell hats, shoes and shirts in large quantities.

So what could be the reasons for such great success on this side of the market for car manufacturers? One factor could certainly be the nostalgia that people feel for car logos, which evoke memories and passions in consumers, who are consequently willing to pay to have them with them at all times. Another aspect could be the issue of collectibles. Indeed, for many people, gadgets from their favorite brands become collectibles that are kept for many, many years. And finally, the style of merchandising products, which are often fashionable and eye-catching, so much so that they are highly valued even by those who are not car enthusiasts.

Given the success and the economic outlays generated, Stellantis is already planning to start a new collaboration in the future with a well-known lifestyle brand. In summary, as you might guess, merchandising is a rapidly growing sector for car manufacturers, who now have a new way to build customer loyalty and generate additional profits.