Product Information Management Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Product Information Management Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Product Information Management Market is projected to register a CAGR of 23.3% during the forecast period. Product information management (PIM) solutions are processes and tools that unify and manage a business' product information to secure a single, accurate view of product data. PIM offers a centralized platform to collect data on a business's products and services cost-effectively. PIM promotes the maintenance of consistent and quality product data and information for all customers.

Key Highlights

• A PIM system helps various organizations integrate various product information collected from multiple information sources, like core product data (product name, title, and description), product attributes (SKU, cost, and pricing), product specifications (e.g., dimensions, warranty, and packaging info), product-related metrics, omnichannel product information (e.g., mobile copy), extended channel information (Google/Amazon/Shopify/etc.), and store-specific information (POS registers and product catalogs).
• With the massive growth in data generation, data and information have become the backbone of organizations and businesses. Recently, more professionals have begun to pay attention to product information management (PIM) systems due to the growing demand for a better customer experience. For instance, in 2018, Adobe found that companies with the most robust omnichannel customer engagement strategies witnessed a 10% Y-o-Y growth, a 10% increase in average order value, and a 25% increase in close rates.
• The PIM software gained strong traction due to its growing application in the retail and e-commerce industries. It is helping offline retail outlets grow in digital spaces and assisting new concepts, like Amazon Go, leveraging customer data to build their product. With the expansion of retail and e-commerce businesses and the growing amount of product data to be managed, the adoption of PIM systems is on the rise.
• Moreover, the demand for Software-as-a-service (SaaS) versions of business applications increased dramatically in recent times. Cloud-based PIM is becoming more popular among organizations that prefer the ease of deployment and collaboration, affordability, and the ability to scale.
• Amid COVID-19, vertically integrated brands and manufacturers that previously exercised tight control over the retail market with their brick-and-mortar stores witnessed a sudden loss of insight into the retail experience as they were forced to depend on e-commerce partners for sales. Moreover, they do not have the same levels of visibility and control as they are used to when compared to a brick-and-mortar store. To avoid retailing on the e-commerce giant Amazon, brands have been focusing on e-commerce platforms, such as Shopify, that allow manufacturers to sell direct-to-consumer while maintaining their brand and customer data.

Key Market TrendsRetail Industry is Expected to Drive the Market Growth

• The adoption of product information management (PIM) is expected to be highest in the retail and e-commerce industry due to the growing focus on enhancing customer experience and the adoption of artificial intelligence and retail analytics tools in the retail and e-commerce sector.
• Owing to digitization, customers have the power to access product information through various sources. Also, with the massive growth in e-commerce, customer preferences and behaviors have changed drastically. Moreover, as the world of mobility and artificial intelligence combines intelligent data analytics, retailers worldwide can experience accurate analytics that is useful for their business.
• According to Shopify, by 2021, global e-commerce will be worth USD 4.97 trillion, almost a 400% increase in seven years. North America contributes USD 552.6 billion, second to Asia (USD 831.7 billion in e-commerce sales), with China as the largest single market. It is estimated that there will be 1.92 billion global digital buyers in 2020, with e-commerce sales expected to account for 13.7% of retail sales worldwide.
• Hence, customer conversion is a significant challenge for retailers. They are competing to engage the empowered consumer by providing a comprehensive solution for accessing product information, thereby enhancing the information supply chain. Product information management solutions maintain a tab on this information and offer enterprises a competitive advantage. PIM is also used for managing data generated from various sources, owing to the increasing number of marketing channels.
• IT budgets rapidly move to cloud giants as businesses adopt more multi-cloud setups. According to a recent Flexera survey on IT budgets for 2021, money is pouring into Microsoft Azure, its software-as-a-service offerings, and Amazon Web Services. Big data and analytics workloads are also gaining traction on the Google cloud platform. Vendors such as IBM, Dell Technologies, Hewlett-Packard Enterprise, and VMware, as well as hybrid cloud and traditional data center vendors, play a part.

North America to acquire major revenue share

• North America is a prominent PIM market due to the growing adoption of advanced technologies to reduce manual tasks and streamline workflows among the region's enterprises. The growth in e-commerce also contributes to the studied market's growth. Moreover, the region has a strong foothold of product information management (PIM) vendors, which drives the overall market's growth. Some include IBM Corporation, Oracle Corporation, Riversand Technologies Inc., and Informatica LLC.
• E-commerce sales in the United States are also increasing. According to a US Census Bureau estimate, total e-commerce retail sales in North America climbed by 7.8% in the first quarter of 2021 compared to the same period in 2020, reaching USD 1,581.4 billion.
• The surge in online shopping sales is related to COVID-19, which has caused millions of people to stay at home owing to health and safety reasons and avoid in-store purchases. With the expansion of the retail and e-commerce businesses and the increasing amount of product data to be managed, the PIM solution's adoption is on the rise in the region.
• Orgill Inc. is one of the world's largest independently owned hardlines distributors, providing retailers across the United States and over 60 countries with access to over 75,000 products and industry-leading retail services.
• Orgill implemented the PIM solution to manage all the company's product information and produce its various product catalogs, directories, and marketing materials. The product information is also used to drive the company's online product catalog. PIM solution supports Orgill's mission to provide unparalleled retailer support and service.
• In the past, SAIL, a large outdoor and sporting goods retailer based in Canada, selected inRiver PIM to organize, manage and market their extensive product range for all their channels. The chosen company PIM to reach its goal to aim to reduce manual data entry, contain large quantities of supplier data powerfully, and cut down the time-to-market for their products.

Competitive Landscape

The product information management market is highly competitive due to the presence of regional and international players. The market appears to be moderately concentrated, with players adopting strategies like mergers & acquisitions and product innovation to maintain their position in the market, which holds an intense rivalry among the competitors. Some of the recent developments in the market are:

• May 2021 - Amazon, the largest online retailer, opened its groundbreaking Amazon Go concept store to the public in Seattle in the United States. The increase in these types of innovation would directly grow the demand for the product information management market.
• June 2021 - Walmart Inc. announced plans to expand its online grocery delivery option to more than 40% of the United States households by the year's end. These trends are expected to be instrumental in driving the PIM market in the retail sector.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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