Prominent YouTube merchandise company Mad Merch is switching its strategy and cutting some influencer clients

• Prominent YouTube merchandise company Mad Merch is switching its strategy and cutting some influencer clients.
• Mad Merch has worked with top influencers like James Charles, Liza Koshy, and Emma Chamberlain in developing branded merchandise like T-shirts and other accessories.
• Business Insider spoke to Faizan Bakali, president and chief operating officer of Mad Merch's parent company, Mad Engine, who confirmed the strategy change.
• In an email statement to Business Insider, Bakali said: "Mad Merch has decided to pivot and focus its attention to work with select mega influencers on distinctive apparel and accessory collections for in-store retail activations."
• Visit Business Insider's homepage for more stories.

Prominent YouTube merchandise company Mad Merch is switching its strategy and cutting some influencer clients.

Mad Merch has worked to develop branded merchandise - like T-shirts, phone cases, and plush toys - for top influencers on YouTube like James Charles, Liza Koshy, and Emma Chamberlain.

The company will not be renewing some of its influencer agreements, according to Faizan Bakali, president and chief operating officer of Mad Merch's parent company, Mad Engine. It will focus on working with "mega" influencers on retail lines, versus selling products directly to consumers. Bakali declined to comment on which clients it would keep on its roster.

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Mad Engine is a top supplier for licensed apparel, and its licensing roster includes brands like Lucasfilm, Marvel, and Disney. Mad Engine's products appear in major retailers across the US and Canada, like Walmart, Target, Nordstrom, Bloomingdales.

"With the overwhelming interest from major retailers (globally) to work with the influencer community, Mad Merch has decided to pivot and focus its attention to work with select mega influencers on distinctive apparel and accessory collections for in-store retail activations," Bakali said in an emailed statement. "With our experience, infrastructure, and the incredible relationships we have built over the years, we hope to serve as the gateway connecting the influencer community to major retailers. We are excited about our new direction and look forward to providing fans with unforgettable experiences. "

In the past, Mad Merch has had success selling influencer merchandise in stores like Target for clients like Chamberlain and JoJo Siwa, Bakali said - and the new focus and initiatives will continue under the Mad Merch banner.

"We are dedicating even more resources (dollars and people) to our new initiative and direction," Bakali said. "We still have our DTC infrastructure intact and have not made any final decisions to completely phase out of this opportunity."

Mad Merch houses Charles' clothing and accessories line, Sisters Apparel, according to the Sisters Apparel contact page, which directs customer service questions to "sistersupport@mad-merch.com."

Sisters Apparel was previously distributed by Killer Merch (coowned by the prominent YouTube beauty influencer Jeffree Star), but after last May's beauty guru blowup (between Tati Westbrook, Star, and Charles), the Sisters Apparel website went offline. Two months later, Sisters Apparel relaunched with the site linked to Mad Merch.

It's unclear whether Charles' brand will continue production with Mad Merch.

Some of Mad Merch's current influencer clients will be looking to produce their merch with other sellers, or will stop production, according to two sources familiar with Mad Merch's strategy shift.

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For more on the business of influencers, according to YouTube and Instagram stars, check out these Business Insider Prime posts:

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• Inside UTA's deal with TikTok star Charli D'Amelio and how the talent agency plans to expand her influencer business: We spoke to execs at UTA about signing TikTok star Charli D'Amelio and what the talent agency looks for in a TikTok creator.