The PIM market stands on the cusp of a turning point, almost a transition to a ‘phase 2’ (very tempted to call it “PIM 2.0”…) While most still can’t see how the investment in a proper PIM solution will pay a lot of dividends, there is also every sign that the market is on the verge of a significant turn.
Let me explain.
Fast-faced economy and game-changing technologies such as mobile’s have shifted the balance of power, now tilting away from retailers and toward consumers. Invariably, while the core functions of retail are – and will always be – unchanged, business models are being redefined by experimenting new ways of delivering value. Nordstrom offers a mobile app that enables the user not only to browse, read customer reviews, etc. but to check product availability at nearby stores. Macy's, Levis, Target, are using beacons to entice people into their stores. And countless examples could be shown. What’s the common denominator from the retailer standpoint? It is this: nimbly responding to customer needs or anticipating buying habits. But if they don’t have processes in place to quickly introduce new products or variations of existing products to channels, with the appropriate and relevant content, they will lose the opportunity to have an edge over their competitors.
As a result, retailers are demanding – wittingly or not, it doesn’t really matter – product information management (PIM) discipline to be in place. I am not naïve, I am aware that PIM has been around for more than a decade, but it is now being recognised as a necessity and no longer a luxury. And that brings me at once to the second point, namely, the market seen from PIM vendors’ standpoint.
PIM, as a discipline, is a solid body of knowledge but it is variedly embodied in software platforms found in the market. I personally segment this market along many dimensions. For example, there are vendors which I call ‘traditional’, some are disruptive, and many are emerging (yes, some overlap is conceded). A second dimension could be the market they serve, such as enterprise, mid-sized businesses, and small businesses (again, allowing for overlaps). A third dimension, and actually a very important one, is the use cases they are designed for. For example, there are PIMs that put more emphasis on the buying side of the value chain, others are more marketing-oriented, others lean towards product lifecycle, others towards merchandising, others towards ecommerce, etc. So no Swiss knifes in the PIM market ;-)
The combined force from retailers and vendors is bringing about a re-evaluation of what PIM really is (and not just a product hub to centralise data) and how to use it. To be precise, the real force is the empowered customer who is pressing retailers and consequently giving PIM new life blood.
Admittedly, this is only a small aspect of what has changed in retail but I submit a very important one for a simple reason. Retailers’ raison d'être is to serve customers with relevant products. I believe PIM is the key to resolving half of this equation.
In the next installment I will explore ways to move from the hub-centric view of PIM.
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