MERCHANDISE DESIGNING MARKET ANALYSIS

Market Challenges And Opportunities

• High Production Costs
• Seasonal Demand Fluctuations
• Presence of Counterfeit Products

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.