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.
The merchandise designing market includes products such as apparel, footwear and accessories. Merchandise designing provides aesthetic value and creative aspects to products along with functional benefits. Innovation and creativity in designs help drive consumer demand for fashionable products. Digital tools allow designers to create and share concepts virtually, speeding up the design process.
Market key trends:
One of the key trends driving growth in the merchandise designing market is increasing digitalization. Designers are increasingly using 3D design and virtual/augmented reality tools to ideate, collaborate and visualize designs online without physical samples. This allows rapid prototyping and testing of multiple design iterations at low costs. Digitally created designs can also be directly sent for digital production through technologies like 3D printing. Such virtual design and production workflows enable faster time-to-market and responsiveness to changing consumer preferences. They also promote sustainable practices by reducing physical design validation processes that involve extensive raw material usage and transportation. The rising adoption of digital tools is thus boosting efficiency, innovation and sustainability in the merchandise designing market.
Threat of new entrants: The merchandise designing market requires high initial investments in design and manufacturing facilities lowering the threat of new entrants. Bargaining power of buyers: Presence of numerous established brands has increased the bargaining power of buyers as they can easily switch to alternatives providing better designs and value. Bargaining power of suppliers: Suppliers of raw materials such as fabric have lesser bargaining power due to availability of substitutes and suppliers. Threat of new substitutes: Increasing use of digital medium for designing and sharing designs has emerged as a substitute for merchandise designing. Competitive rivalry: Intense competition exists in the market due to well established global brands continuously introducing new designs and fashion trends.
Strength: Variety in product offerings, well recognized global brands and strong distribution network provides strength to key market players. Weakness: High dependence on seasonal demand and trends makes revenues volatile. Rapid changes in fashion preferences is also a weakness. Opportunity: Emerging markets in Asia Pacific and Latin America provides vast opportunities for market expansion. Growth of e-commerce has also opened new opportunities. Threats: Trade war between US and China and fluctuations in raw material prices are major threats. Rising environmental concerns and sustainability issues pose threats to market growth.
Global Merchandise Designing Market Demand is expected to witness high growth, exhibiting CAGR of 9.4% over the forecast period, due to increasing fashion consciousness among consumers globally. The Asia Pacific region dominates the global market due to the presence of emerging economies like China and India with rapidly growing middle-class population fueling the demand.
Regional analysis: The Asia Pacific region is expected to be the fastest growing market for merchandise designing during the forecast period. Countries like China, Japan and India have emerging middle-income populations fueling the demand. North America contributes significantly to global revenues supported by heavy investments in fashion & lifestyle.
Key players: 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. Major players are focusing on adopting latest technologies to enhance their design capabilities and expand in fast growing regions.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it