Market Overview
The multichannel order management (M.O.M) market is witnessing significant growth, underpinned by the rising retail and online shopping industries. In 2022, the market valuation stood at USD 2.9 billion, and it’s expected to grow at a compound annual growth rate (CAGR) of 9.1% during the forecast period. This growth trajectory is particularly propelled by emerging markets where online shopping is booming.
One of the key drivers of this market is the global rise in smartphone utilization and internet users, coupled with the increasing adoption of various sales channels by enterprises. These factors are accelerating the market’s growth, with M.O.M solutions providing a singular platform for managing orders and inventory across multiple sales channels.
Technological advancements, notably in areas such as cloud computing and big data, are revolutionizing business strategies. Moving away from traditional models, these breakthroughs offer myriad possibilities, enabling businesses to implement customer-centric marketing strategies. Consequently, the demand for multichannel order management solutions is escalating. Additionally, the ever-changing legal environment and the shift towards newer phases of consumer engagement also play significant roles in shaping this emergent revolution.
Multichannel Order Management, commonly known as M.O.M, is a strategic business approach that enables organizations to efficiently manage sales orders and inventory across multiple sales channels. It offers a consolidated view of stock levels, order statuses, and customer data, empowering businesses to streamline operations and enhance customer experience. This system is vital in today’s fiercely competitive business landscape, where organizations sell across diverse platforms, including online marketplaces, physical stores, and direct-to-customer websites.
Multichannel Order Management (M.O.M) plays a vital role in driving business success. As e-commerce and omnichannel shopping experiences continue to thrive, customers expect impeccable service across all channels. M.O.M equips businesses with the necessary tools and processes to meet these demands and surpass competitors.
One of the key advantages of M.O.M is its ability to centralize order and inventory information. This eliminates the need for managing individual sales channels, minimizing the risk of errors and delays. With a centralized system, businesses can effortlessly monitor stock levels, track order status, and efficiently process returns or exchanges. This enhanced visibility enables better forecasting and planning, optimizing stock levels to meet customer demand effectively.
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Key market trends and drivers:
The multichannel order management market is experiencing a significant surge, driven by several key trends and market drivers:
- Digital Transformation: Advanced technologies associated with digital transformation across various industries are playing a crucial role in the market’s growth. As businesses adapt to changing customer preferences, competition, and technological advancements, the demand for robust multichannel order management systems is increasing.
- Increasing Internet Users and Smartphone Adoption:The global rise in internet usage and rapid adoption of smartphones are creating a vast online customer base. The growing preference for online shopping, facilitated by the convenience of smartphones, is necessitating efficient order and inventory management across multiple digital platforms.
- Customer Experience Management:The unpredictable nature of customers and markets has prompted businesses, including retailers, fashion brands, food and beverage companies, and wellness providers, to integrate robust customer experience management tools into their systems. Multichannel Order Management (M.O.M) solutions play a vital role in streamlining operations and enhancing customer experiences.
- Advancements in Digital Technologies and Next-Generation Networks:The evolution of digital technologies, the internet ecosystem, smartphones, social media, and next-generation networks are actively encouraging customers to utilize online channels worldwide. This digital shift is further driving the growth of the multichannel order management market.
- Expansion of Distribution Channels:Companies are rapidly expanding their distribution channels, including websites, social media, e-commerce platforms, marketplaces, and offline stores, to attract more customers and boost revenues. This multi-channel strategy requires an efficient management system, thereby fueling the demand for Multichannel Order Management (M.O.M) solutions.
Key market challenges
The Multichannel Order Management market, despite its significant growth and potential advantages, faces a range of challenges:
Security and Privacy Concerns: As businesses endeavor to earn customer trust through responsible data usage, security and privacy become paramount. Consumer data is a valuable asset, and its misuse or theft can result in not only significant financial loss but also damage to credit ratings and time spent resolving the issue. Therefore, enterprises must develop a comprehensive data protection strategy that acknowledges the value of consumer data and the risks associated with mishandling it. Multichannel order management involves the handling of such sensitive information, which must be safeguarded to prevent data breaches and theft that could harm a company’s reputation. While the internet has facilitated business operations and consumer connectivity, it has also created opportunities for unauthorized access, potentially compromising enterprise data. This growing concern among businesses is driving increased focus on security and privacy, which may impact the growth of the multichannel order management industry in the forecast period.
Competitive Analysis
Key Players
- IBM
- Oracle
- SAP
- Salesforce
- HCL Technologies
- Zoho
- Brightpearl
- Stitch Labs
- Selro
- Linnworks
- Vinculum
- Freestyle Solutions
- Aptean
- Etail Solutions
- SellerActive
The competitive landscape of the global Multichannel Order Management (M.O.M.) market is characterized by a dynamic and diverse range of players. It encompasses global giants, domestic champions, and emerging innovators, all striving to capture a significant share of this rapidly evolving market.
Leading the pack are key players such as IBM, Oracle, SAP, and Salesforce. These established technology conglomerates have made substantial investments in research and development activities, resulting in an expansive market footprint achieved through organic growth and relentless innovation in new touchpoint development.
Noteworthy for their robust M.O.M. solutions backed by advanced technologies like AI and ML, HCL Technologies and Zoho focus on expanding and strengthening their existing touchpoint portfolios. This enables them to cater to a wide array of sectors, including retail, e-commerce, and manufacturing.
Brightpearl and Stitch Labs are gaining traction through their dedication to providing nimble and efficient M.O.M. solutions. Their strategies revolve around rapid innovation and agile response to ever-evolving market trends.
In terms of strategic alliances, Selro, Linnworks, and Vinculum stand out. For instance, Linnworks’ acquisition of SkuVault is aimed at driving growth for omnichannel sellers.
Freestyle Solutions, Aptean, Etail Solutions, and SellerActive are making significant strides in the market by focusing on security enhancements and rigorous compliance standards. An example is Freestyle Software’s latest release of M.O.M. version 12, which meets the stringent PCI-S3 requirements.
Overall, the market’s competitiveness is fueled by participants’ commitment to technological advancement, strategic innovations, and an unwavering focus on enhancing customer experiences. This multifaceted competition ensures a vibrant and dynamic future for the global Multichannel Order Management market.
Recent Developments and News:
Recent developments in the Multichannel Order Management market further emphasize its growth and dynamism:
- SkuVault Acquisition by Linnworks:On September 1, 2022, SkuVault, a leading U.S.-based provider of Inventory Management Software (IMS) and Warehouse Management Systems (WMS), announced its acquisition by Linnworks, a prominent provider of order management systems and e-commerce enablement software. This strategic alliance brings together two companies with a shared vision to drive growth for omnichannel sellers. Marlin Equity Partners, a global investment firm managing over USD 8.1 billion in capital commitments, will be the majority stakeholder in the newly formed entity.
- CitiusTech’s Acquisition of Wilco Source:On November 10, 2022, CitiusTech, a pioneer in healthcare technology and consulting services, acquired Wilco Source, a leading provider of Salesforce consulting and installation services for healthcare and life sciences enterprises. As businesses leverage digital technology to transform healthcare delivery, enhancing patient and member experiences has become crucial. This acquisition will enable CitiusTech to expand its patient and member-centric digital products by integrating Wilco Source’s robust Salesforce implementation, integration, and product engineering capabilities with CitiusTech’s extensive healthcare domain expertise and digital innovation experience.
- Oracle’s New Capabilities:In April 2023, Oracle introduced new capabilities across the Oracle Fusion Cloud Applications Suite, expected to streamline supply chain planning, enhance operational efficiency, and improve financial accuracy. The updates include new planning features, usage-based pricing, Oracle Fusion Cloud Supply Chain & Manufacturing (SCM) rebate management capabilities, and improved quote-to-cash processes in Oracle Fusion Applications.
- Freestyle Software’s Latest Release:In April 2023, Freestyle Software unveiled version 12 of Multichannel Order Manager (M.O.M.), representing the second major release since 2020. This latest version introduces significant security enhancements and is one of the first applications to achieve certification under the new, more rigorous PCI–S3 requirements.
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Segmentations Analysis
Multichannel Order Management Market Based on Component Type:
- Software
- Solution
- Services
- Integration & Deployment Services
- Training & Support Services
- Professional Services
- Consulting Services
- Managed Services
Multichannel Order Management Market Based on the Deployment Mode Type:
Multichannel Order Management MarketBased on Organization Size Type:
- Large Enterprises
- Small and Medium-Sized Enterprises (SMEs)
Multichannel Order Management Market Based on Vertical Type:
- Manufacturing
- Healthcare & Life Sciences
- Retail, e-commerce, and Wholesale
- Food & Beverages
- Other Verticals (Automotive and Pharmaceuticals)
Multichannel Order Management Market By Region
- North America
- Europe
- Asia-Pacific
- Middle East & Africa
- South America
