The merchandise designing market is estimated to be valued at US$ 92.99 Bn in 2023 and is expected to exhibit a CAGR of 9.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Merchandise designing refers to planning, developing, and coordinating details related to design and production of various consumer goods and branded items for retail and online stores. It involves concept generation, design sampling, trend analysis and forecasting, fabric selection, product testing, costing and many other tasks to create attractive and functional merchandise that can appeal to target consumers. The merchandising designers work closely with brand managers, product developers, material suppliers, manufacturers, buyers and others throughout the process. Some of the commonly designed items include apparel, accessories, footwear, home decor items, toys, and more.
Market Overview:
The merchandise designing market is fragmented in nature with the presence of several small and large firms. The key products designed by these companies include apparel, sleepwear, activewear, swimwear, suits, dresses, denims, footwear, handbags, accessories and home decor items. Majority of merchandising designers cater to the apparel and footwear industries owing to high demand for branded clothing and shoes across the globe. They work to renew product lines, refresh branding and visual merchandising of retail stores on a regular basis. Innovation and sustainability are also high focus areas.
Market Dynamics:
Increased demand for branded apparel and premiumization across categories like athleisure, loungewear and activewear is a major driver for the merchandise designing market. Consumers are willing to pay extra for well-known brands that offer superior design, quality and status appeal. Moreover, rising health consciousness has boosted demand for functional and performance athletic shoes and apparel which designs keep innovating. Also, rapid growth of e-commerce retailers is prompting designers to focus on mobile and online shopping experiences through visually appealing product pages and innovative virtual/augmented reality based merchandising. Shortening of design cycles to market trends quickly further supports market growth. However, intense competition and pressure on pricing due to rise of private labels are challenges faced.
SWOT Analysis
Strength: The merchandise designing market has strong brand recognition and loyalty for top players. Major brands like Nike and Adidas have cultivated a strong brand image over decades. There is a wide network of retail stores and distribution channels for major players to reach customers globally.
Weakness: Smaller players have difficulty competing with deep pockets of major corporations. Imitation of designs is a constant challenge and lowers barriers to entry for new players. Market saturation in mature markets affects potential for high growth.
Opportunity: Emerging economies in Asia and Latin America provide new markets for expansion with rising incomes and spending power. Collaboration with popular celebrities and social media influencers helps drive brand awareness and sales among younger audiences.
Threats: Rapid shifts in consumer preferences and tastes make it challenging to forecast demand. Increased environmental regulations around the world may impact materials and production processes used.
Key Takeaways:
Global Merchandise Designing Market Demand is expected to witness high growth, exhibiting CAGR of 9.4% over the forecast period, due to increasing health consciousness among consumers. The market size is projected to grow from US$ 92.99 Bn in 2023 to US$ 189.82 Bn by 2030. Popular celebrity endorsements and sleek product designs targeted at sports enthusiasts and outdoor activity lovers have boosted demand for sports apparel.
Regional analysis North America holds the major share in the merchandise designing market and is expected to continue dominating during the forecast period. This can be attributed to the presence of key players such as Nike, Adidas, and Under Armour in the region. Moreover, active participation of people in sports and fitness activities has propelled the demand for high-performance sports apparel and accessories. However, Asia Pacific is anticipated to exhibit the fastest growth owing to the rapidly growing middle-class population with higher disposable incomes in countries such as China, India.
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. These top players have strong brand recognition and a diverse portfolio of sports and casual wear fashion products.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. With an MBA in E-commerce, she has an expertise in SEO-optimized content that resonates with industry professionals.