Merchandising Units Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Merchandising Units Category Overview

The merchandising units category is expected to grow at a CAGR of 4.6% from 2023 to 2030. Key factors that drive the growth of the category include growing demand for effective and appealing product displays, greater focus on retail aesthetics and visual merchandising, organized retail's growth, the necessity of space optimization, expanding consumer desire for experiential retail, and increasing competition between merchants. The rising popularity of internet shopping offers retailers the chance to merge the worlds of online and offline retail. Retailers may give customers a visual depiction of their products, make shopping easy, and increase sales by integrating merchandising units into e-commerce systems. In addition, rising emphasis on environment-consciousness and sustainability offers an opportunity for the development of eco-friendly industry products.

Advancements in digital technologies such as VR (virtual reality), AR (augmented reality), smart merchandising units, interactive displays, and digital signages are propelling innovation in the global category. These technologies provide data analytics for better decision-making, enable real-time price and promotion modifications, and increase product visibility. In addition, technology like IoT (internet of things) is redefining the visual merchandising by enabling merchants to check inventory, observe consumer behaviour, and deliver individualized experiences.By monitoring inventory levels using IoT sensors before they run out, retailers can replenish their product inventories.

The category for merchandizing units is fragmented and highly competitive with the presence of large number of regional and global market players. Players in the industry comprise of design firms with a focus on retail merchandising, suppliers of fixtures, and manufacturers of display units. These businesses offer variety of services, such as manufacture, design, installation, and maintenance of product offered in the category. In addition, they focus on offering their clients with value-added services, option for customization, and innovations in the product space. Buyers in the industry possess high negotiation capability since there is intense competition among the players which enables buyers switching to a better option based on product design, services, and pricing.

Raw materials, labor, equipment and tools, rent and utilities, general and administrative, and sales and marketing are the major cost components of this category. There are no set printing costs for POP displays because each brand has a unique personalized display. A straightforward design with minimal branding should be reasonably priced, as opposed to a complex design that will cost more. In addition, the final cost of merchandising unit will be significantly impacted by the pricing of materials. Temporary displays are made using less expensive materials like cardboard and litholam corrugate. A retailer will require to pay much more up front if it wants to utilize a digital, permanent, or semi-permanent unit. Furthermore, a smaller unit with a capacity of 30 odd products can cost around USD 25 - USD 30, whereas larger units with a capacity of over 99 products would cost around USD 98 - USD 105.

The Europe region dominates the global merchandizing units category, holding a substantial share. Due to the significant presence of established industry players in the region, particularly in the nations like Germany and U.K., the region is anticipated to witness growth during the forecasted time frame. In addition, the category has recently experienced tremendous growth opportunities in the region, in addition to the rise in product sales. Furthermore, the Asia-Pacific region is anticipated to witness the fastest growth rate owing to the rising retail sector in nations like India and China. Furthermore, evaluating the right size and type of the merchandising unit that is required in the store, assessing the number of options a supplier offers for the type of material, ensuring that the supplier meets the regulatory standards, investing in the unit which is aligned with retail execution strategy, and negotiating prices & terms with suppliers are some of the best sourcing practices considered in this category.

Merchandizing Units Procurement Intelligence Report Scope