AC Milan, the oldest and most respected team in Italian football, has in recent years put more emphasis than ever into the sale of its merchandise and the development of lifestyle products. In 2018, before the takeovers of American investment firms RedBird Capital or Elliott Management, Milan's merchandise sales were relatively meagre at €6 million, dwarfed by other top European clubs. However, in the face of such economic challenges and market opportunities, the club's top management developed an ambitious business strategy that focused on enhancing the brand's image, broadening its market reach, and attracting a younger, more international and broader consumer base through innovative product lines and marketing tools.
The current owner of Milan, Gerry Cardinale, understands the importance of brand development and has been instrumental in driving the club's global presence and investing heavily in infrastructure, including a new and modern stadium. The new stadium, which is currently under development, will not only further enhance the team's game experience and spectacle, but will also serve as an important vehicle to showcase the strength of the Milan brand, attracting more business cooperation and fan support.
According to data reported by the Italian financial daily Il Sole 24 Ore through Calciomercato.com, Milan's merchandise sales revenue made a significant leap last season, reaching around 30 million euros, a figure that has increased fivefold compared to six years ago, and is a strong testament to the success of its commercial transformation. Rather than rest on its laurels, the club has set itself an even more ambitious goal of increasing its revenue from merchandise sales to more than 90 million euros over the next five years.
It is worth noting that Milan is particularly prominent in the field of e-commerce. In the past, its online store had an average annual net income of around 2 million euros, but last season it changed dramatically, with revenue surging to around 14 million euros, a staggering increase. At the same time, brick-and-mortar retail stores have also experienced significant growth, from €4 million in revenue from two stores in 2017-18 to five stores with a total revenue of more than €16 million.
This series of results is a testament to the strong rewards of the business strategy carefully planned and executed by Milan's management, and is expected to continue to strengthen its global brand position in the future market competition and continue to attract new consumers through diversified goods and services, achieving both economic and brand value growth.