The global merchandise designing market involves companies providing design and development services for apparel, footwear, accessories, and other consumer goods for private labels and in-house brands. Products offered through merchandise designing include sportswear, activewear, casual wear, athletic footwear, and accessories. Merchandise designing services help brands understand customers’ needs, develop creative concepts, select materials, finalize fits and sizing, plan product launches, optimize production processes, and monitor quality. The growing demand for customized and innovative merchandise across e-commerce and retail outlets is fueling the merchandise designing market.
The Global Merchandise Designing Market is estimated to be valued at US$ 107.13 Mn in 2024 and is expected to exhibit a CAGR of 5.5% over the forecast period 2024 to 2030.
Key Takeaways
Key players operating in the Merchandise Designing Market Growth 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. Key players are focusing on expanding their merchandise portfolio and global footprint to tap into rising sales opportunities. For instance, Nike launched specialized merchandise lines for basketball, running, training, American football, soccer, and other sports to increase its market share.
The growing demand for innovative and customized apparel and footwear across e-commerce retailers, department stores, and specialty stores is fueling market growth. Rising health awareness and participation in sports and fitness activities have increased the demand for high-performance sportswear and activewear. Evolving fashion trends and increasing spending on lifestyle products are also supporting merchandise designing market expansion.
Major companies are expanding their global operations through new stores, online sites, and strategic partnerships to cater to the rising international demand for their merchandise. For example, Adidas opened flagship stores, partnered with major retail chains, and invested in digital capabilities to solidify its presence across Asia, Europe, North America, and other regions. Global expansion helps companies increase sales volumes and diversify revenue streams.
Market Key Trends
Surging e-commerce sales is a key trend driving the global merchandise designing market. The COVID-19 pandemic has accelerated the shift towards online shopping, benefiting merchandise design companies. E-commerce platforms offer an array of products from different brands on a single platform, giving customers enhanced convenience and variety. Moreover, online retail provides rich visual content, user reviews, convenient payment options, fast delivery, and lucrative deals which drive up sales. Leading merchandise design companies are actively collaborating with e-commerce giants and digitalizing their operations to cater to the burgeoning online demand.
Porter’s Analysis
Threat of new entrants: Low barrier to entry with affordable technology tools for design. However, established players hold strong brand value and distribution channels.
Bargaining power of suppliers: Suppliers of raw materials like fabrics have low bargaining power due to availability of substitutes. Designers can switch suppliers easily.
Bargaining power of buyers: Individual consumers have high bargaining power due to availability of alternatives. However, for large institutional buyers bargaining power is relatively low.
Threat of new substitutes: Threat is moderate from alternate channels like individual designers, direct-to-consumer brands presenting trendy designs at affordable costs.
Competitive rivalry: Intense competition amongst incumbent players to capture market share through unique designs, latest trends, brand building and tie-ups with celebrities/influencers.
North America holds the largest share in the merchandise designing market owing to high living standards and demand for trendy apparel and accessories. Evolving fashion trends and health consciousness also contribute to market growth. Europe follows North America in terms of value share due to spending power of consumers in Western Europe.
Asia Pacific is expected to emerge as the fastest-growing regional market over the forecast period. Improving economic conditions, higher spend on personal goods, and rising fashion consciousness especially among youth will support demand. Increasing penetration of global brands into key APAC nations like China and India further strengthens market prospects in the region.
*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.