The global increase of ecommerce has led to some astounding advancements in the PIM (Product Information Management) market.
This market started to gain speed back in 2003, and has only grown in recent years. Now, as consumers continue to turn away from physical stores and towards online sellers, the need for product information management has become ever more urgent.
Thus, having reached 5.1 billion USD in 2016, the PIM market is predicted to increase in growth through the next five years.
What is PIM / Product Information Management?
As the name suggests, Product Information Management (PIM) means storing information about products. With online marketplaces becoming more and more popular, information about each individual product must be clear to the consumer. Such information as price, category and product name are all essential.
PIM allows for all the information about each product to be stored in only one location. This allows easier management for online stores selling thousands of products to their customers. PIM systems allow for multi-lingual data to be used across different geographic locations and in different ways.
Reasons for Increase
The main reason for the increase of the PIM market has been due to the increased demand for cloud-based solutions in information storage. With master-data in the cloud, essential business functions can be performed much quicker, and product information is consistent across different platforms.
A company that sells online, on mobile, and in printed catalogs must have a consistent view of the product information. Big internet selling companies that work with different suppliers, in different countries, with different price lists and multiple promotions must have a way to manage all of that information.
Another reason for increase is that more detailed information is more often in demand, both from consumers and from governments.
Consumers wish to see the most detailed information of the product or service before they buy, thus being able to compare specifications between different products and make a decision.
In many places, legal requirements also make it necessary for companies to store more detailed information about each of their products.
These legal requirements are actually a challenge for the PIM market. Since different governments have different regulations or policies to consider, the way that the information is handled or what exactly is stored can change across borders.
North America Leads the Way
The continent of North America has led the way when it comes to the PIM Market. The constant demand in the United States and Canada has proved essential to the increase of the PIM market itself.
Also, adaptation to new technologies has made it easier for the PIM market to grow in this area, making the integration of big data possible within Product Information Management systems.
Reports show that the PIM market is on an uphill curve, and there are predictions of substantial increase over the next five years.
From 5.1 billion USD last year, predictions have been made that the PIM market will increase to over 15.7 billion USD by 2021. Thus, the estimated CAGR is about 25%. This incredible increase means that the Product Information Management Market is truly reaching its potential, providing necessary solutions to businesses around the world.
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