by Merchandise designing refers to the process of conceptualizing and developing designs for various consumer products such as apparel, footwear, accessories, and home décor items. It involves researching trending styles and designs, creative designing, developing prototypes, selecting fabrics and materials, and ensuring quality, fit and safety. Merchandise designers work closely with brands and retailers to understand their target audience and develop products that meet consumer demand. The growing popularity of online shopping has necessitated high-quality merchandise designs that attract the consumer virtually and enhance the online shopping experience. This has boosted demand for professional merchandise designers.
The global Merchandise Designing Market is estimated to be valued at US$ 107.13 Mn in 2023 and is expected to exhibit a CAGR of 5.5% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends driving growth in the global merchandise designing market is the increasing adoption of technology in the designing process. Merchandise designers are increasingly using 3D designing and virtual prototyping software to experiment with various design ideas virtually and share their designs online with brands and clients located globally. This has streamlined the designing process and accelerated the time taken to bring new designs to the market. Furthermore, technologies such as AI, machine learning and augmented reality are being utilized to conceptually envision merchandise designs in virtual environments and gauge real-time consumer responses. Such innovations are expected to disrupt the traditional designing process and fuel revenue growth opportunities in the coming years.
Porter’s Analysis
Threat of new entrants: The merchandise designing industry requires huge investment in technological infrastructure and brand building. This poses significant barrier for new players.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of various merchandise designing brands and options. However, established brands with unique designs and quality have some customer retention.
Bargaining power of suppliers: Major brands outsource production to contract manufacturers with scale. This gives advantage to suppliers. However, brands focus on controlling intellectual property to maintain pricing power.
Threat of new substitutes: Threat from substitute products is relatively low as merchandise designing requires continuous innovation and creativity to attract customers.
Competitive rivalry: The industry has few international brands dominating the market with continuous new product launches and branding campaigns.
Key Takeaways
The global merchandise designing market is expected to witness high growth driven by rising sports and fashion industry. Global Merchandise Designing Market Demand is estimated to be valued at US$ 107.13 Mn in 2023 and is expected to exhibit a CAGR of 5.5% over the forecast period 2024 to 2031.
North America currently dominates the market attributed to high spending on branded apparel and accessories in the region. Growing health and fitness trend has boosted demand for sports merchandise especially in the US and Canada. Europe also has considerable share in the global market. Countries like Germany, UK, France, and Italy have strong demand for innovative apparel and accessories designs. Favourable government policies have encouraged emergence of startups in merchandise designing. This has intensified competition among regional and international brands.
Key players operating in the merchandise designing market are Nike, Adidas, Puma, Under Armour, New Balance, ASICS, VF Corporation, Lululemon, Columbia Sportswear, Ralph Lauren, Li Ning, L Brands, H&M, Zara, Uniqlo, Forever21, Gap, Next, Esprit, and C&A. Leading companies focus on product differentiation through celebrity endorsements, technological innovations as well as expansion in developing markets to strengthen their global presence.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
