MERCHANDISE DESIGNING MARKET ANALYSIS

The Merchandise Designing Market size is expected to reach US$ 174.40 Billion by 2030, from US$ 92.99 Billion in 2023, at a CAGR of 9.4% during the forecast period. Merchandise designing involves creating graphics and artwork for branding and decoration purposes on products. It is used across apparel, accessories, footwear, and other consumer products. The growth is driven by rising demand for customized and personalized products.

The merchandise designing market is segmented by product type, end user, distribution channel ,  category and region. By product type, the market is segmented into apparel, footwear, accessories, and others. The apparel segment accounts for the largest share due to high demand for graphic t-shirts and fashion apparel.

Merchandise Designing Market Regional Insights

• North America is the largest market for merchandise designing, accounting for over 30% of the global market in 2022. The growth of the market in this region is driven by the rising disposable income of consumers, the growing popularity of e-commerce, and the increasing demand for customized merchandise.
• Europe is the second-largest market for merchandise designing, accounting for over 25% of the global market in 2022. The growth of the market in this region is driven by the increasing popularity of fashion and lifestyle brands, the growing demand for sustainable merchandise, and the rising adoption of digital technologies.
• Asia Pacific is the third-largest market for merchandise designing, accounting for over 20% of the global market in 2022. The growth of the market in this region is driven by the growing middle class, the increasing popularity of online shopping, and the rising demand for personalized merchandise.

Figure 1. Global Merchandise Designing Market Share (%), by Region, 2023

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Merchandise Designing Market Drivers

• Rising Adoption of Customization and Personalization: The demand for customized and personalized products is increasing across apparel, footwear, accessories, and other consumer segments. This is a key factor driving the growth of the merchandise designing market. For instance, according to a YouGov survey, 26% of Americans have purchased a personalized product, with the five core personalization categories being apparel and footwear, food and beverages, technology products, vacation and travel experiences, and household goods.( YouGov plc is a British international Internet-based market research and data analytics firm headquartered in the UK with operations in Europe, North America, the Middle East, and Asia-Pacific.)
• Growth of E-Commerce: The rapid growth of e-commerce and online shopping is supporting the growth of the merchandise designing market. Online platforms allow for easy customization and on-demand production.
• Marketing and Promotional Activities: Companies across industries are using merchandise products like t-shirts, caps, bags, etc. for marketing and promotion activities. This is creating significant demand for merchandise designing services.
• Fashion Consciousness and Brand Awareness: Growing fashion consciousness among consumers is leading to demand for trendy and branded merchandise products. This is fueling the market’s growth.

Merchandise Designing Market Opportunities

• Expansion into Developing Countries: Emerging economies like India, Brazil, Mexico, etc. offer significant opportunities for merchandise designers due to improving economic conditions and retail infrastructure. South Asian countries like India, Bangladesh and others have witnessed accelerated economic growth during COVID-19 pandemic. For instances As per World Bank data from 2021, India achieved GDP growth of over 8% despite challenges posed by the pandemic, highlighting its resilience.
• Mergers and Acquisitions: Consolidation activities like mergers and acquisitions provide opportunities for large players to expand their customer base and optimize operations. Mergers and acquisitions can indeed present promising opportunities in the merchandise designing market by broadening capabilities and extending product offerings. Through combinations and synergies, companies can gain significant scale and expertise that would otherwise be difficult to achieve organically. For instance, according to United Nations Comtrade database from 2021, merchandise exports drastically increased for many countries like Vietnam (42% increase from 2020), Bangladesh (25% increase), and India (21% increase).
• Product Innovation: There is an opportunity for merchandise designers to innovate and develop sustainable and smart products using technologies like smart fabrics, recycled materials, etc. Product innovation has immense potential in the merchandise designing market. Companies that focus on developing innovative products often find lucrative opportunities for growth. With rising disposable incomes and evolving customer preferences, there is ever-increasing demand for uniquely designed, high-quality and feature-rich products. For Instances As per UNESCO data, global R&D expenditure increased from $1.5 trillion in 2015 to $1.7 trillion in 2019. Such investments in advancing science and technology will continually throw up new possibilities for innovative merchandise designs across diverse categories in the coming years.
• Growth of Online Customization: Online customization platforms enable customers to design their own merchandise products. Investing in such technologies provides huge growth opportunities. The growth of online customization is presenting a major opportunity for the merchandise designing market. With rising internet and smartphone penetration globally, consumers now expect personalized offerings that reflect their unique style and preferences. This paradigm shift towards customizable products is allowing merchandise designers to connect directly with their target audience, understand consumer demand better, and develop customized designs at scale. For Instances As per the data from United Nations Conference on Trade and Development (UNCTAD)’s 2021 report, the e-commerce share of global retail sales surged from 16% in 2019 to 19% in 2020 during the COVID-19 pandemic as consumers increasingly shopped online.

Merchandise Designing Market Trends

• Adoption of Digital Printing: Digital printing technologies are being widely adopted for merchandise designing due to benefits like shorter production times, flexibility, and cost efficiency. The growing adoption of digital printing technologies is having a significant impact on the merchandise designing market. Digital printing allows for faster production turnarounds, lower setup costs, and greater design flexibility compared to traditional printing methods. Designers can now rapidly prototype new design concepts, get instant feedback, and make quick revisions as needed. For Instances, According to the Congressional Research Service, digital printing now accounts for over 30% of the total U.S. commercial printing market.
• Sustainability: Sustainable designing practices using recycled and eco-friendly materials is an emerging trend in the market driven by changing consumer preferences. The merchandise designing market is now innovating to offer fashion, home, and lifestyle products that are consciously made with minimal environmental damage. Designers adhere to strict standards of eco-certification, transparency, and social accountability to align with the sustainability preferences of modern consumers. For Instance, fashion brand H&M group launched its global sustainability strategy ‘Loop & Thread’ in 2020 with the goal of only using recycled or other sustainably sourced materials by 2030.
• Usage of Bold Graphics and Colors: Bold graphics, fluorescent colors, gradients, and holographic effects are some of the popular stylistic trends in merchandise designing. The use of bold graphics and vivid colors has increasingly become a popular trend in merchandise designing in recent years. Brands have realized that standout graphical elements and eye-catching hues help products get noticed on crowded store shelves and digital marketplaces. By incorporating bright artwork and saturated shades, designers are able to catch consumers' attention instantly and subtly communicate what their items are about. For Instances as in a 2022 report from the U.S. Chamber of Commerce, 74% of merchants said graphic-heavy merchandise was a top-selling category, reflecting how this style-oriented trend has upticked consumer demand in the industry.
• Retro-inspired and Vintage Designs: Nostalgic retro-inspired aesthetics and vintage graphic styles are gaining significant traction in the merchandise designing market. The retro inspired and vintage designs trend has had a significant impact on the merchandise designing market in recent times. Brands are increasingly looking towards the nostalgia associated with retro designs and styles from the mid-20th century decades like the 1950s, 60s and 70s for inspiration. They are incorporating design elements, motifs, colors, silhouettes and themes from those eras into their new product ranges. This allows them to appeal to customers' sentiments of nostalgia as well as stand out from their competitors who are relying on modern designs. For Instances a 2022 survey by the US Chamber of Commerce Foundation reported that over 70% small and medium businesses in the US have incorporated some retro inspired elements into their product or service offerings over the past two years to appeal to customer preferences.

Merchandise Designing Market Restrain

• High Production Costs: The high cost of production, including expenses related to designing software, printing equipment, fabrics, etc. restricts the growth of the merchandise design market.

COUNTER BALANCE: Explore alternate materials and manufacturing locations to balance cost without compromising quality. Increase operational efficiency through waste reduction initiatives and lean management practices.

• Seasonal Demand Fluctuations: Demand for merchandise designing is highly seasonal, being higher during occasions like sports events, festivals, trade fairs, etc. This results in fluctuating revenues.
• Presence of Counterfeit Products: the widespread availability of low-quality counterfeit merchandise products inhibits the growth of genuine merchandise designers.

ANALYST VIEW

The merchandise designing market is expected to experience steady growth over the next five years. One of the key drivers for this market is the rising demand for customized and unique product designs across various industries including apparel, accessories, consumer goods etc. With consumers becoming more fashion and style conscious, they are willing to pay a premium for uniquely designed products. This growing demand is encouraging companies to outsource their designing requirements to specialist firms. Another factor fueling growth is the increasing popularity of private label brands. More retailers are looking to develop exclusive product lines under their own brands to differentiate themselves. This has also augmented the need for experienced design houses. However, high set up and maintenance costs associated with state-of-the-art designing technologies may deter some small players. Intense competition and low entry barriers could squeeze profit margins for players as well.The Asia Pacific region is likely to see strong growth supported by China and India which are major sourcing hubs. Both countries have a large talent pool of skilled designers and offer design services at competitive costs. North America will continue to be another major market owing to high spending on innovative designs by prominent brands. Europe is also expected to witness steady demand from the apparel and consumer goods industries. With growing emphasis on aesthetics, the merchandise designing market looks poised for further expansion globally over the coming years.

Recent Developments

New product launches

• Product Launch 1: In July 2022, Italian fashion brand Gucci collaborated with sportswear brand Adidas to launch a new range of merchandise, including shoes, t-shirts, bags, and accessories, featuring both brands’ signatures.
• Product Launch 2: In March 2022, Oriental Trading launched a new personalized merchandising collection allowing customers to add names, monograms, photos, and custom text to products.( Oriental Trading Company is a direct merchant of value-priced party supplies, arts and crafts, toys, novelties, and school supplies. It was founded in 1932 as one of the United States' first wholesaling companies)
• Product Launch 3: In January 2022, Under Armour launched UA Iso-Chill, a new line of sportswear featuring fabrics that provide cooling sensation to the wearer.( Under Armour, Inc. is an American sportswear company that manufactures footwear and apparel headquartered in Baltimore, Maryland, United States.)

Acquisition and partnerships

• In September 2022, Printful acquired Printify in an effort to expand its on-demand merchandising and fulfillment capabilities. The combined entity will have a global network of 21 production facilities. (Printful, Inc. is a printing company that was founded in California in 2013. The company was co-founded by Lauris Liberts and Davis Siksnans & Printify was founded in 2015 in Riga, Latvia by Artis Kehris, Gatis Dukurs, and James Berdigans. Printify helps connect its users with printing services providers.)
• In January 2022, Snapchat acquired Compound Photonics, a company that makes display tech for augmented reality.( Snapchat is an American multimedia instant messaging app and service developed by Snap Inc., originally Snapchat Inc. One of the principal features of Snapchat is that pictures and messages are usually only available for a short time before they become inaccessible to their recipients .& Compound Photonics U.S. Corporation is a fully integrated microdisplay module design utilizes an ultra-flexible software-configurable platform. The Company offers micro-LED display, optical engine, development kits, LCoS display, and other related products.)
• In April 2022, NTWRK, a video commerce platform, acquired the leading online merchandising marketplace Shopify. This allows Shopify merchants to sell via NTWRK live shows. ( NTWRK offers a curated livestream shopping experience featuring the world’s best creators. Tune into daily drops and shop art, sneakers, fashion, and more).

Figure 2. Global Merchandise Designing Market Share (%), by Product type, 2023

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Top companies in Merchandise Designing Market

• Nike
• Adidas
• Puma
• Under Armour
• New Balance
• ASICS
• VF Corporation
• Lululemon
• Columbia Sportswear
• Ralph Lauren
• Li Ning
• L Brands
• H&M
• Zara

Definition: Merchandise designing refers to the process of creating artwork, patterns, graphics, logos, motifs, and other decorative elements for branding and embellishment purposes on consumer products. It involves designing concepts and artwork for apparel, footwear, fashion accessories, home furnishings, souvenirs, sporting goods, and various other consumer merchandise. Merchandise designers focus on visual elements like color, layout, typography, material, etc. to develop designs that align with the brand image and style. Their work requires combining creative aesthetics with an understanding of clients' needs. The global merchandise designing industry serves various segments like fashion, sportswear, intimates, kidswear, etc. by supporting their product development and branding strategies. With the help of digital technologies, merchandise designers are able to provide customized and personalized designs at scale to meet evolving consumer demand. The industry caters to both large brands as well as small businesses, enabling them to create trendy and unique merchandise.