Assortment Planning Solution Market Size, Share, Growth, and Industry Analysis, By Type (Cloud-based, On-premises), By Application (Large Enterprises, SMEs), Regional Insights, and Forecast To 2032

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ASSORTMENT PLANNING SOLUTION MARKET REPORT OVERVIEW

The Assortment Planning Solution Market size was valued at approximately USD 0.7 billion in 2023 and is expected to reach USD 1.5 billion by 2032, growing at a compound annual growth rate (CAGR) of about 15% from 2023 to 2032

An assortment planning solution is a smart retail management tool, which maximizes product selection in each category to make it possible for the customers to find what they are looking for depending on their specific demand. It is the process of using sales data, market trends and consumer behaviour information to be able to create the combination of products that would bring the higher profit. The solution enables retailers to take factors such as seasons, regional preferences, and storage capacity into account helping them to make informed decisions on which products to stock, in which quantities, and where to locate them in their stores/online platforms. This approach maximizes sales opportunity, minimize unwanted inventory, and delight the customers by making sure that the products are there which consumers needs right there and then. It gives them the ability to respond very fast to the market changes, exploit the new trends and save their competitive edge in the developed environment.

The assortment planning solution market has gone through a strong upward move in recent years due to the growing need for streamlined and data-driven merchandising in retail. They provide retailers with advanced analytic tools, which can be used to optimize product assortments, enhance customer experiences, and hence maximize returns. Among the major drivers of market growth is an increasing number of retailers who embrace the omnichannel approach. With the customers demanding for consistent shopping experience across online and offline channels, retailers are finding the quickest way of meeting up through product assortment planning solutions to suggest the same goods and prices on all platforms. On the other hand, the expansion of the technologies that deal with big data and analytics has made the retailers able to use the enormous data for getting insights that are valuable to them for the market trends, competitor strategies, and consumers’ preferences. These capabilities are so used by assortment planning solutions to guide retailers in the right direction in the terms of product selection, distribution, and pricing processes and thus let them to have better store sales performance and inventory management.

COVID-19 IMPACT

"Market Growth Hampered by Pandemic due to Widespread Lockdown"

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

The Assortment Planning Solution market has seen negative consequence because of the COVID-19 pandemic. The retailers have confronted the challenge as a result of the disruption of their operations, shifts in the consumer behaviour, and optimization of product mix which makes it difficult to predict demand. A lot of organizations had to give their attention to essential products and as a result assortment planning solutions were not as important. Besides, limited resources and uncertain conditions have made retailers reluctant to buy new technologies and improve existing systems. Supply chain disruptions have contributed to this problem and are responsible for recent stock outs and failure to meet expectations. Nevertheless, the innovation opportunities have also increased in the course of these changes as the companies move to more flexible and data-driven assortment planning processes in order to cope with the changes in the retail environment.

LATEST TRENDS

"Increasing Adoption of AI and Machine Learning Technologies to Drive Market Growth"

The assortment planning solution market is seeing a growth in demand with several key factors giving rise to the retail value chain. A prominent development is the growing use of AI and machine learning in order to boost efficiency in assortment planning processes. Retailers today are making the most out of the tool of big data and sorting algorithms to analyse vast amounts of information, such as historical data, consumer preferences and market trends to create micro-assortments of products which fulfil the needs of the customers and minimize the costs of the inventory simultaneously. Another important development in the retail sector is omnichannel retailing, which introduces an interconnected shopping process across both physical channels and e-commerce platforms including the traditional brick and mortar, e-commerce platforms, and mobile applications. Omnichannel strategy support solutions are developing to create harmonious product assortment and inventory management across the different retail outlets. This synchronization avoids inconsistency and ensures availability, whether a customer is shopping in-store or through the channels. The trend of personalization is also shaping assortment planning innovation that results in players offering curated product assortments that exactly match the style and taste of individual customers.

ASSORTMENT PLANNING SOLUTION MARKET SEGMENTATION

By Type

Based on type the global market can be categorized into Cloud-based, On-premises.

• Cloud-based: The cloud-based assortment planning solutions has the advantage of being accessed from anywhere that has internet connection. Increasing flexibility and scalability to adjust to the changing business needs can be carried out with these features. They normally require low initial investment and can be implemented faster as compared to onsite solutions.

• On-premises: On-premises solutions are installed with the software and hardware components running at the retailer's own server environment. Though they could be run on higher-priced hardware and software license, they provide greater data security options and flexibility.

By Application

Based on application the global market can be categorized into Large Enterprises, SMEs.

• Large Enterprises: Scalability and customization of assortment planning solutions for large enterprises makes managing complex supply chains and huge product catalogs easy and effective. These enterprises usually carry a large amount of different items from a number of divisions or distribution channels this makes the assortment planning a very significant part of their activities.

• SMEs: SMEs are provided by efficient assortment planning with the possibility of receiving advanced analytics and decision-making tools that were previously only accessible by large companies. The solutions give SMEs competitive advantage by enabling them to offer product mix that have the right product mix that meet customer needs but at the right price and without inventory costs or stock outs.

DRIVING FACTORS

"Rising Adoption of Data Analytics to Boost the Market"

Growth in data mining using modern technologies has led to assortment planning solution market growth. Assortment planning solutions make use of advanced analytics tools to drive through large amount of data, including sales history, market trends, and consumer behaviour. Retailers are increasingly perceiving the importance of data- driven decision-making in order to assort products that are in most demand in the market. The taste of the consumers is always changing mainly due to seasonality, the influence of trends and socio-economic status. Assortment planning solutions provide retailers with the flexibility to respond to these changes by supplying information about what items are most attractive to the target consumers. Since consumer appetite changes on a daily basis from traditional to trendy, the success of retailers lies in their turn to customize the assortment of goods they are selling in order to stay in competition.

"Demand for Personalized Shopping Experiences to Expand the Market"

Nowadays, as a result of the increasingly improved technologies, people can create unique shopping experiences through which they can fulfil their personalities. Assortment planning is an array of solutions, which enable retailers to divide their customer base into distinct segments and then present customized assortments of products to each group of customers individually. Through personalized suggestions and arranged product lists, retailers can maximize customer satisfaction and loyalty; thereby, as a result of it, increasing brand reputation. Efficient inventory keeping is essential for retailers to eliminate stock outs, prevent overstocking and reduce usage of shelf space. The forecasting systems with algorithms and predictive analytics improve effectiveness of inventory levels by providing that products the right products are on hand at the right time and in the right quantities. Through the matching of inventory levels with demand forecasts, the retailers can get both higher cash flow and operational efficiency.

RESTRAINING FACTORS

"Complexity of Retail Operations to Impede Market Growth"

Retailing, by nature, involves a large number of variables including customer preferences, seasonal trends, and inventory management, which ultimately make the retailing operations complex. Assortment planning solutions must cope with this complexity in order to ensure spot on analytics and suggestions. The diverse nature of retail, on the other hand, constitutes a challenge for solution providers, as developing a universal solution frequently leads to substantial inadequacy. Consequently, customization is essential as it enhances the complexity and costs of implementation. Even though assortment planning solutions promise to improve operational performance and increase sales, these solutions come with a high upfront cost and ROI is a major consideration for retailers. Implementation costs, including purchase of license software, customization and training expenditure are high and in the majority of cases, small and medium-sized enterprises do not have enough budgets

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ASSORTMENT PLANNING SOLUTION MARKET REGIONAL INSIGHTS

"North America Dominating the Market due to Presence of a Large Consumer Base"

The market is primarily segregated into Europe, Latin America, Asia Pacific, North America, and Middle East & Africa.

North America has emerged as the most dominant region in the global Assortment planning solution market share due to several factors. Along with the region, a highly developed retail landscape incorporating large retail chains, speciality stores, and e-commerce giants exists. These retailers are constantly confronted with fierce competition, and they are always looking for new strategies to improve their efficiency and increase customer satisfaction. Consequently, companies are turning to these advanced assortment planning solutions in order to keep them ahead in the market. In addition, North America has some of the major technology companies which concentrate on big data analytics and software development. These organizations specialize in inventory planning and are always at the cutting edge of innovation while creating new products and features that respond to retailers' requirements that are changing rapidly.

KEY INDUSTRY PLAYERS

"Key Industry Players Shaping the Market through Innovation and Market Expansion"

The Assortment planning solution market is significantly influenced by key industry players that play a pivotal role in driving market dynamics and shaping consumer preferences. These key players possess extensive retail networks and online platforms, providing consumers with easy access to a wide variety of wardrobe options. Their strong global presence and brand recognition have contributed to increased consumer trust and loyalty, driving product adoption. Moreover, these industry giants continually invest in research and development, introducing innovative designs, materials, and smart features in Assortment planning solution, catering to evolving consumer needs and preferences. The collective efforts of these major players significantly impact the competitive landscape and future trajectory of the market.

List Of Top Assortment Planning Solution Companies

• Style Arcade (Australia)
• Oracle (U.S.)
• Quant (U.S.)
• Logility Solutions (U.S.)
• Vue.ai (India)
• o9 Solutions (U.S.)
• SAS Institute (U.S.)

INDUSTRIAL DEVELOPMENT

February 2023: Vue.ai, a retail vertical of AI start-up Mad Street Den, has announced a collaboration with Meta to generate AI-powered automatically and a range of models dedicated to enhance creatives using Meta's creative services.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.