Apparel Management Software Market

Market Overview

The global apparel management software market size is expected to grow at a CAGR of 6.05% during the forecast period (2023–2031). In recent years, there has been a surge in retail e-commerce sales, leading to a rise in apparel sales through this channel, thereby driving the global apparel management software market. Moreover, the prominent market players in the global market are using strategic initiatives such as mergers and acquisitions, expansions, joint ventures, and other similar efforts to thrive in the competitive market.

Apparel Management Software (AMS) is a software solution specifically developed to enhance efficiency and effectiveness in managing apparel and fashion products throughout their lifecycle, encompassing production, distribution, and retail operations. This software is especially pertinent for enterprises in the fashion and apparel sector, as proficient handling of inventory, orders, production, and associated activities is imperative for achieving favorable outcomes.

The utilization of apparel management software enables organizations operating in the apparel sector to promote operational efficiency, minimize expenses, foster collaborative efforts, and ultimately enhance the quality of their products for their clientele. The features and functionalities of AMS solutions can exhibit variation among different systems, prompting organizations to select a system congruent with their own requirements and operational procedures.

Market Dynamics

Market Drivers

Growth of E-commerce Retail

E-commerce retail channels play an important role in apparel distribution, as a substantial portion of market revenue is generated via these channels. The expansion of e-commerce has significantly altered the retail industry; consequently, apparel companies require reliable software solutions to oversee online sales, inventory, and order fulfillment effectively. Apparel management software assists companies in adjusting to the dynamic retail environment. In the coming years, e-commerce retail sales are projected to increase significantly due to rising consumer spending, a larger population, and greater internet accessibility.

For instance, the global retail e-commerce sales reached an estimated 5.2 trillion U.S. dollars in 2021. This amount is anticipated to increase by 56% in the coming years, reaching approximately USD 8.1 trillion by 2026. Additionally, the introduction of mobile shopping apps and the accessibility of secure and convenient payment gateways contribute to the expansion of the online retail industry. Thus, the surging growth of apparel sales through e-commerce is anticipated to drive the apparel management software market over the forecast period.

Growing Demand for Efficiency and Automation

Apparel management software facilitates the streamlining of numerous fashion and apparel industry processes, including supply chain management, order processing, inventory management, and production planning. Additionally, certain AMS solutions incorporate functionalities that guarantee products abide by regulatory standards and quality control requirements. Thus, businesses are increasingly adopting these solutions to improve operational efficiency and decrease manual errors.

For instance, in June 2023, Anne Fontaine, a ready-to-wear brand for women's fashion, implemented CloudSuite Fashion ERP from cloud software provider Infor to increase its online sales and gain a comprehensive view of its global supply chain. Similarly, in July 2023, Childsplay Clothing, a luxury childrenswear retailer, adopted Akeneo's Product Information Management (PIM) and Product Experience Management (PXM) solution to facilitate its worldwide expansion. Thus, these factors augment the market expansion.

Market Restraint

Complex Implementation Process

The implementation procedure of apparel management software can often be intricate and multifaceted. The process may encompass activities such as the transfer of data, the provision of training to employees, and the customization of systems. The intricate nature of this phenomenon may discourage enterprises, particularly those with restricted IT capabilities.

In addition, the successful implementation and utilization of advanced software necessitates highly skilled staff. The absence of personnel possessing the requisite technical proficiency may impede the effective implementation and utilization of apparel management software. These factors are projected to restrict market growth.

Market Opportunities

Strategic Initiatives by Key Players

The critical players in the global market are taking strategic initiatives to strengthen their market share. For instance, in November 2022, Aptean announced the acquisition of ImPuls AG, a supplier of enterprise resource planning (ERP) solutions to manufacturers and brands of apparel, footwear, accessories, and textiles. The modular platform from ImPuls assists clients in streamlining mission-critical workflows and simplifying inventory management in the fashion and apparel industry. This transaction further solidifies Aptean's dedication to catering to the fashion and apparel sectors by partnering with a reputable and prosperous provider in the DACH region.

Additionally, in August 2022, a definitive agreement was announced between Aptean, a worldwide provider of enterprise software solutions crucial to organizational operations, and Aptos, a prominent provider of retail technology solutions. According to this agreement, Aptean will acquire Aptos' division dedicated to planning and product lifecycle management. The proposed acquisition aims to enhance Aptean's range of cloud-based software solutions for the apparel, luxury, fashion, and specialty retail sectors while expanding its presence in the fashion and apparel market. Such initiatives are expected to create opportunities for the market growth.

Regional Analysis

Based on region, the global apparel management software market is bifurcated into North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa.

Asia-Pacific apparel management software market share is expected to expand substantially during the forecast period. Asia-Pacific is the fastest-growing region in the world. The apparel industry is labor-intensive and is affected by various factors like land resources, labor costs, environmental protection, material supply, and sales markets. As a result, apparel manufacturers, major consumer markets, wholesalers, and retailers globally are shifting their focus to lower-cost countries to maximize profits, constantly moving global apparel manufacturing bases. In the Asia-Pacific region, Japan, Taiwan, India, and China are lucrative apparel markets. Consumers' rising discretionary income and improved living conditions are key factors accelerating product demand in these nations. All these factors lead to the growth of the apparel industry, which will, in turn, foster the demand for apparel management software in the region.

Additionally, the adoption of such management software is also surging. For instance, in January 2023, Wildcraft, an outdoor brand headquartered in India, adopted WFX Fashion PLM to enhance operational efficiency and facilitate the company's expansion efforts. WFX, also known as World Fashion Exchange, is a prominent provider of cloud-based corporate software solutions specifically designed for the fashion industry. The PLM (Product Lifecycle Management) system is a contemporary cloud-based solution that will facilitate Wildcraft in optimizing its operational procedures, consolidating data from many origins, and enhancing transparency in the production process.

Similarly, in November 2019, Datatex, an organization that provides IT software solutions to the worldwide textile and apparel sector, has recently obtained Eastman Exports as its latest client from the Asia Pacific market. As part of the "atchayam" initiative, Eastman has chosen the complete Datatex NOW ERP solution suite. Eastman Exports is a prominent apparel manufacturer in India, focusing on knitwear production. Such factors boost the regional market expansion.

North America is anticipated to grow at a significant pace. North America is a developed region and an early adopter of new and advanced technologies. Therefore, the e-commerce industry in this region is rapidly increasing. Consumers' need for quick shopping options is a significant driver of the prevailing developments in the North American e-commerce business. There was a notable preference for online purchasing among millennials and Generation Z individuals in the past. However, with the onset of the pandemic, the landscape has shifted, and individuals of all age groups have increasingly embraced the convenience and benefits of online retail. According to Statista, the e-commerce market in North America is anticipated to exhibit robust development and exceed USD 1 trillion in e-commerce revenues by 2023, driven by an average annual revenue growth rate of 14% from 2022 to 2026. Consumers in this region are also increasingly shopping for their apparel online. Therefore, with the growing trend of online shopping, apparel companies are actively looking for software solutions to effectively handle inventory management, order processing, and several other operational areas of their business.

Furthermore, technological advancements, like RFID (Radio-Frequency Identification), IoT (Internet of Things), and AI (Artificial Intelligence), are exerting a significant impact on the progression of apparel management software, leading to the emergence of increasingly sophisticated functionalities. Companies embrace these technologies to enhance monitoring, traceability, and operational efficacy. Thus, all these factors contribute to the regional market expansion.

Segmental Analysis

The global apparel management software market is segmented by deployment and applications.

Based on deployment, the global apparel management software market is divided into on-premise and cloud-based. 

Cloud-based Apparel Management Software (AMS) presents numerous benefits compared to conventional on-premises solutions. This technology enables users to remotely access and oversee data and operational tasks from any location with an internet connection. This flexibility proves advantageous for enterprises that operate across different regions, employ remote teams, or are involved in the fashion industry, which relies on a worldwide supply chain. In addition, cloud solutions frequently exhibit greater scalability compared to on-premises options. This factor holds significant importance within the garment industry, as enterprises may encounter variations in demand or swiftly evolving market circumstances.

Furthermore, these solutions could mitigate the initial hardware, infrastructure, and maintenance expenses. This aspect is particularly beneficial for enterprises of modest to moderate scale, which may lack the necessary financial means to undertake substantial initial expenditures. Cloud platforms enable instantaneous cooperation among many supply chain players, including designers, producers, and merchants. This practice facilitates the optimization of communication processes and enhances overall operational effectiveness.

Based on application, the global apparel management software market is segmented into apparel retailers, apparel manufacturers, and others.

Apparel manufacturers can derive numerous operational benefits from the implementation of AMS. AMS aids in the efficient monitoring and management of inventory. It enables manufacturers to monitor the real-time work-in-progress movement of finished products and raw materials. This can increase efficiency and decrease carrying costs by preventing overstocking and stockouts. Manufacturers can monitor the entire production process, from the procurement of raw materials to the delivery of finished goods, through the visibility it affords them along the supply chain.

Additionally, the improved visibility facilitates well-informed decision-making, supply chain optimization, and prompt responses to fluctuations in demand. Additionally, AMS frequently incorporates functionalities for product lifecycle management, which aid manufacturers in overseeing the complete life cycle of their goods, encompassing procurement to eventual disposal. This could foster greater interdepartmental collaboration and elevate the overall quality of the product.

Recent Developments

• October 2023- Infor, a notable participant in the cloud software sector, introduced a range of platform technologies and enhancements to its CloudSuites that cater to specific industries. In the realm of new product offerings, Infor is directing efforts towards augmenting its CloudSuite solution tailored to the fashion industry by introducing novel functionalities.
• September 2023-Apparel Business Systems, LLC (ABS), a leading provider of enterprise resource planning (ERP) software to the wholesalers, manufacturers, and distributors of fashion and apparel, was acquired by Aptean, a global provider of mission-critical enterprise software solutions.