The merchandise designing market involves the creation and development of unique designs for apparel, footwear, sportswear and accessories to meet consumer demands. Merchandise designers work closely with garment manufacturers to plan and design collections for brands and retailers. They follow latest fashion trends and market insights to develop attractive, functional and on-trend items at optimal production costs. The growing fashion consciousness among global population and rapid urbanization has increased the need for stylish and affordable clothing and accessories, fueling demand for merchandise designers.
The global merchandise designing market is estimated to be valued at US$ 107.13 million in 2024 and is expected to exhibit a CAGR of 5.5% over the forecast period of 2024 to 2030.
Key players operating in the Merchandise Designing Market Growth includes 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 Takeaways
Key players: Nike, Adidas and Puma lead the global market with their innovative designs and collaboration with top designers. Nike spends about $1 billion annually on research and development of new products. Adidas is investing heavily in new technologies like 3D printing and robotics to automate designs.
Growing demand: Rapid growth of e-commerce fashion platforms has increased demand for diverse designs of clothing, footwear and accessories catering to regional tastes. Emerging markets like India and Southeast Asia are major driver of growth.
Technological advancement: Developments in design software, virtual sampling tools and CAD/CAM technologies allow designers to create and modify designs digitally at lower costs. AI powered tools are helping predict trends and consumer preferences for designs.
Market Trends
Customization is gaining popularity as top brands allow buyers to configure products like sneakers and apparel as per their individual style and needs. Mass customization helps improve customer loyalty while increasing per unit margins.
Sustainable fashion is bringing major changes to materials and manufacturing processes used. Designers are increasingly using eco-friendly fabrics, recycling techniques and focusing on longevity of products to lower environmental footprint.
Market Opportunities
Luxury and premiumization of streetwear brands offer scope for high quality, limited edition designs. Collaborations of sports/fashion brands with artists and celebrities can lead to unique, coveted products driving frenzied consumer demand.
Emerging activewear category beyond athletics provides chance for innovations combining performance, comfort and on-trend styles. Growing number of health-conscious millennials interested in functional gym-to-street clothing expands the market.
Impact of COVID-19 on Merchandise Designing Market
The COVID-19 pandemic has severely impacted the merchandise designing market. During the initial lockdown phases in 2020, manufacturing facilities and supply chains were shut down leading to halt in production of merchandise across major geographies. This impacted both domestic as well as international sales of merchandise. With the cancellation or postponement of major sporting and cultural events in 2020 and 2021, demand from institutional clients reduced significantly. However, with increasing vaccination rates and lifting of restrictions, economic activities are recovering gradually. While the business from institutional clients may take longer to bounce back, consumer demand is returning to the market steadily. Merchandise designing companies are focusing on ramping up their online sales channels and coming up with new product lines catering to evolving consumer preferences amid the pandemic. Emphasis is also being placed on inventory management and flexibility in production schedules to adjust to fluctuating demand patterns. Digital technologies and innovative materials are expected to play a key role in reviving market growth in the coming years.
The North American region accounts for the largest share of the global merchandise designing market in terms of value. North America has been at the forefront in adopting new fashions and trends in the sports and casual apparel segment. Rising health consciousness and participation in outdoor activities over the years has significantly increased demand for technical and athletic apparel in this region. Changing consumer lifestyles and increasing spending power further support the market growth. Meanwhile, Asia Pacific is identified as the fastest growing region for the merchandise designing market. The Asia Pacific region encompasses countries with large population bases and fast expanding middle-class demographics such as China and India which are driving higher sales volumes. Increasing penetration of global brands and emergence of domestic manufacturers are major factors bolstering market expansion in Asia Pacific.
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