A computer projector system and method for customization (labelling) of apparel and merchandise. The computer projector system provides virtual customer-assisted layout of apparel and merchandise targeted towards customization of branded sports merchandise which is manually assembled or pressed. The computer projector system consists of a mechanical arm attached to a heat press, a mini projector, a computer and cloud-based software with a database of customization of embellishments. The computer projector system displays an image of the customized set of numbers, letters, or patch design directly on the apparel (or other merchandise), so that the operator can manually place and press the components in a highly efficient and accurate manner. The computer projector system also addresses the problem of automatically correcting for kerning and arcing on customized product in accordance with pre-determined guidelines in the sports and entertainment industries.