Australian SMBs miss growth by skipping branded merchandise

New research suggests that Australian small and medium-sized businesses are missing out on growth opportunities by forgoing branded merchandise.

A study conducted by VistaPrint has found that nearly three quarters of small and medium business (SMB) owners in Australia believe branded merchandise helps establish credibility, with 69% indicating it signals they have "made it" as a business. Despite this, 55% are not utilising branded merchandise to bolster their public image.

The branding gap

While 74% of SMB owners reported that branded merchandise makes them feel like a "real business", and 39% saw strengthened brand identity as a result, fewer than half (45%) currently use branded items for their business. An additional 24% are considering it, suggesting a substantial proportion of the sector is aware of the potential benefits but has yet to commit.

The research surveyed 500 SMB owners in Australia, aiming to capture a diverse snapshot across industry, size and region. The financial contribution of SMBs to the national economy is significant, with 2.7 million businesses generating AUD $590 billion annually, representing one-third of Australia's GDP and employing more than five million people.

Psychological and practical benefits

Branded merchandise offers more than just increased visibility. According to the study, 80% of SMB owners regard businesses with branded uniforms as highly professional, with nearly a quarter ranking them as "extremely professional." Additionally, branded merchandise was found to improve team pride (33%) and instil a sense of legitimacy and confidence among owners.

"For many entrepreneurs, branded items act as tangible proof that their venture has evolved from startup to established business," said Marcus Marchant, CEO of Vistaprint Australia. "This represents the moment SMB owners feel they've truly arrived, not just a promotional or branding nice-to-have."

When discussing the effect on staff and customers, the research recorded that 26% of owners believed branded merchandise improved customer trust, while 32% considered it key to gaining an edge over competitors. For many, branded items appeared instrumental in helping people "get talking" about their business.

Sydney-based Squirtz Plumbing offers one example of this phenomenon. Joel, the owner of Squirtz Plumbing, said in reference to introducing branded uniforms and caps to his business:

"When I first started Squirtz Plumbing, it was just me and a van. The day we designed our own branded uniforms and caps was the day I felt like I had really made it. It was more than just merch, it made my team feel unified, helped customers recognise us instantly, and made the business feel professional and established."

Professional perception

Perceptions of professionalism are closely tied to branding. Businesses that choose not to invest in branded apparel or signage risk being perceived as less established or trustworthy, the study found. As a marker of legitimacy, visible branding is becoming increasingly prominent, with uniforms, decals and merchandise contributing to both marketing and operational confidence.

Barriers to adoption

Despite the potential upsides, the research highlighted a range of barriers that prevent wider adoption. Cost was cited as the primary obstacle by 47% of respondents, followed by lack of time (17%) and uncertainty regarding the return on investment (13%). Some 64% of SMB owners said they would consider greater investment if the design process was easier.

"Merchandise is no longer just giveaways, it's a strategic way for small businesses to build credibility and connect with customers," said Marchant. "From a café's branded aprons to a tradie's uniforms, these moments of visibility create trust and pride in the community.

"Branded merchandise is one of the simplest and most effective ways for SMBs to build visibility and pride," added Marchant. "We are making it easy for small businesses to bring their brand to life in ways that strengthen trust and drive long-term success."

As Australia's small businesses continue to drive economic growth and employment, the research underlines a broader trend towards the adoption of branding as a tool beyond marketing, with impacts reaching into staff morale, professional reputation, and customer relationships.